Government Loan Schemes for Women Entrepreneurs in India (2026 Guide)

Many women in India want to run their own business. The idea is there, the confidence is there, but money often becomes the wall. Banks feel unapproachable, and private lenders charge too much, and that can make one feel like giving up before they even try. What many do not realise is that the Indian government has actually set up several schemes specifically so that women can get govt loans for women without all that stress.

This guide covers the government loans for women, who can apply, how much they can get, and how they can apply for them.

What are Government Loans for Women?

Government loans for women are loans given through banks and government-backed financial bodies. The government either supports the loan directly or brings the interest rate down, which means you end up paying less than you would with a regular bank loan. The process can be comparatively less complicated than traditional loans, and the conditions may be easier to meet for a government scheme for women entrepreneurs.

Govt loans for women are open to different kinds of businesses. A tailoring unit, a food stall, a grocery shop, a beauty parlour, a handicraft business, and so on - there is likely a scheme that fits.

The central government schemes for women entrepreneurs are handled through nationalised banks, rural banks, and microfinance institutions across the country. You do not need to be in a big city to apply.

Benefits of Government Business Loans for Women

The reasons to go with government schemes for women entrepreneurs are:

• Low Interest Rates: The interest rates are lower under government schemes for women entrepreneurs. That means smaller monthly payments and less pressure on your business income.
• No Collateral Requirement: Many of these women's business loans government schemes do not ask you to put up your house or gold as security. For most, that is a huge relief.
• Flexible Repayment: You may get more time to repay a government loan for ladies. Such schemes are built keeping small business owners in mind, so the repayment period is reasonable.
• Additional Support: Quite a few government loan for ladies schemes also come with training support or mentoring, in addition to money.

Top Government Loan Schemes for Women Entrepreneurs

Here are the main government schemes for women entrepreneurs that are active in 2026. Each one works differently, so read through and see which one suits your situation.

Pradhan Mantri Mudra Yojana

This is the most commonly used among women's business loans from the government and a top pick among govt loans for women entrepreneurs in India. It has three levels depending on how much you need.

You do not need to give any security. Women applicants often get slightly better rates. You can apply at your nearest bank or through the Udyamimitra website. For most women looking for govt loans for women without too much hassle, this is a good starting point.

Stand-Up India Scheme

Stand-Up India is a women entrepreneur scheme specifically for women and SC/ST borrowers. Every bank branch in the country has to support at least one woman borrower under this scheme. Govt loans for women under this scheme range from ₹10 lakhs to ₹1 crore and are intended for starting a new business in manufacturing, trading, or services.

You get up to 7 years to pay it back. If you are looking for a proper business loan for ladies from government to start something on a bigger scale, this scheme is worth checking.

Mahila Udyam Nidhi Yojana

Mahila Udyam Nidhi Yojana is run by Punjab National Bank and SIDBI. Loans of up to ₹10 lakhs are available to women who want to set up a small business. The repayment period is up to 10 years, and for the first 5 years, you do not have to repay the principal; only the interest. This feature of this government scheme for women entrepreneurs gives your business time to actually grow before the bigger repayments start.

For women who are worried about repayments in the early months, this is one of the most practical women's business loans government options on this list.

Udyogini Scheme

This woman entrepreneur scheme is run through the Women Development Corporation and several public sector banks. It covers more than 88 types of businesses, from retail shops to agro-based work to small production units.

Loan amounts go up to ₹3 lakhs. Women from families below the poverty line, widows, and women with disabilities can get this government ladies loan scheme at zero interest. For everyone else, the rate is subsidised. If you are in a smaller town or village, Udyogini is one of the most accessible woman entrepreneur scheme options to start your first business.

Dena Shakti Yojana

Dena Shakti gives women's business loans from the government across sectors like farming, manufacturing, retail, micro-credit, and education. Depending on what sector you are in, you can borrow up to ₹20 lakhs.

Women get a 0.25% reduction on the interest rate. Over several years of repayment, those savings are real. It is a significant govt loan scheme for ladies running or planning a retail or production-based business.

Orient Mahila Vikas Yojana

This woman entrepreneur scheme under Punjab National Bank is open to women who own at least 51% of their business. You can borrow anywhere from ₹10,000 to ₹10 lakhs with a 2% cut on the interest rate.

No security is needed for loans up to ₹10 lakhs. That makes it a useful loan for ladies from government for women who run their own business but do not have property to put up as a guarantee.

Eligibility for Government Loans for Women

While there are variations, across most government loans for women, these are the common requirements:

• You must be an Indian woman citizen to avail a government loan for ladies.
• Age is generally between 18 and 65 years.
• Govt loans for women are available to businesses that are already registered or in the process of registering.
• You should hold at least 51% ownership in the business.
• Most government schemes for women entrepreneurs also require you to meet income limits in subsidised schemes like Udyogini.
• A reasonable credit record helps, though several schemes welcome first-time borrowers.

Documents Required for a Woman Entrepreneur Scheme

For most govt loans for women entrepreneurs, keep these ready before you go to the bank:

• Your Aadhaar card is the most important one. It covers both who you are and where you live, so carry it every time.
• A PAN card is needed for most govt loans for women entrepreneurs, so get one made if you do not have one yet.
• Carry a recent utility bill or rental agreement in case the bank asks for additional address proof.
• Your last 6 months of bank statements will be checked, so get a printed copy from your branch or download it online.
• If you are salaried or have filed taxes, bring your ITR or a basic income record. If you run a small business, even a simple handwritten income and expense sheet helps.
• A trade licence or Udyam registration certificate shows the bank that your business is real. If you are not registered yet, get that done before you apply under a woman entrepreneur scheme.
• Carry a simple business plan if you are applying for a larger government scheme for women entrepreneurs.
• Two or three passport-size photographs

How to Apply for a Government Loan for Ladies

Applying for a government loan for ladies is not as hard as it sounds. Here is a simple way to go about it:

• First, go through the schemes above and pick the one that fits your business and the amount you need. Do not apply to multiple schemes randomly.
• Second, visit your nearest nationalised bank or use the government portal for the respective government scheme for women entrepreneurs. For Mudra, go to udyamimitra.in. For Stand-Up India, go to standupmitra.in, and so on.
• Third, get your documents together before filling out the form for the government scheme for women entrepreneurs. Incomplete applications are the main reason things get delayed.
• Fourth, fill everything in carefully. Names, dates, and other details must match your Aadhaar and PAN exactly.
• Fifth, put together a basic business plan if you are applying for a larger amount under a woman entrepreneur scheme. Banks look at this seriously, and it improves your chances.
• Sixth, once submitted, the bank will verify your details and assess your profile. Smaller loans can come through in about a week. Larger loans may take 2 to 4 weeks.

Conclusion

There are several government schemes for women entrepreneurs in India designed to make business funding more accessible and affordable. Whether you are starting a small home-based venture or planning a larger enterprise, a suitable loan for women by government is available. These schemes offer benefits like lower interest rates, flexible repayment terms, and, in many cases, collateral-free loans.

The key is understanding which woman entrepreneur scheme fits your business size and financial needs. With proper documents and a clear plan, applying is straightforward. Government loans for women can provide the financial support needed to confidently start or grow a business.

Besides a business loan for ladies from government, learn about more financing options for women entrepreneurs, check eligibility criteria, and compare interest rates on My Mudra. Explore working capital support, MSME loans, and customised funding solutions based on your business stage. Enjoy minimal documentation, competitive interest rates, simplified procedures, and a secure database.

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- Business Loans for Women Entrepreneurs
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