- Financial Assistance: These schemes provide crucial financial support through loans, subsidies, and tax benefits, easing the initial burden on women entrepreneurs.
- Skill Enhancement and Mentorship: Many schemes offer training and mentorship programs, equipping women with the necessary skills to manage and grow their businesses effectively.
- Easy Access and Reduced Barriers: With features like collateral-free loans and simplified application processes, these initiatives aim to lower the barriers to entry and make entrepreneurship more accessible for women.
In recent years, there’s been a global recognition of how important women entrepreneurs are for a country’s economy. As we push for equality and better financial opportunities for everyone, there are many efforts to help women start, manage, and expand their own businesses. By 2025, several government programs will continue to be key in supporting women who want to be entrepreneurs.
Let’s explore six loan schemes backed by the government that are designed for women business owners: Annapurna Scheme, PM Mudra Yojana, Start-up India Scheme, Stree Shakti Yojana, Cent Kalyani Scheme, and Udyogini Scheme.
Annapurna Scheme: For Women in the Food Industry
Annapurna Scheme is a special loan scheme designed to help women who want to start their own businesses in the food and catering industry. It gives financial help to women who are looking to start small food-related businesses like catering services, tiffin centers, or making snacks. This not only provides them with money but also helps them build a stable business in the food industry, giving them a way to earn a living.
Key Features of Annapurna Yojana
- Loan Amount: Women can borrow up to Rs 50,000 under this scheme.
- Repayment Period: The loan needs to be paid back within 1 to 36 months, and there’s a 1-month grace period.
- No Collateral Required: In most cases, you don’t need to provide any security to get this loan, which makes it easier for women who are starting their first business.
- Eligibility: To be eligible, you need to have skills or experience in the food industry and provide a detailed business plan.
Pradhan Mantri Mudra Yojana (PMMY): Empowering Women Entrepreneurs
Another important scheme that supports women entrepreneurs financially is Pradhan Mantri Mudra Yojana (PMMY). This scheme caters to different stages of business growth, offering loans under three categories: Shishu, Kishor, Tarun and TarunPlus. Through PMMY, many women have successfully started and expanded their businesses, especially in areas like textiles, handicrafts, and small-scale manufacturing.
As per the latest available data for the financial year 2024 – 2025, the Pradhan Mantri Mudra Yojana (PMMY) has sanctioned a remarkable total of 4.94 crore loans across the country. The cumulative amount sanctioned under this scheme stands at a substantial ₹5,22,866.53 crore, out of which an impressive ₹5,11,901.01 crore has already been disbursed to beneficiaries. These figures clearly highlight the scheme’s significant role in boosting micro and small enterprises, especially empowering women entrepreneurs and the economically weaker sections by providing easy access to collateral-free credit.
Key Features of PM Mudra Yojana
- Loan Amount: Under the Shishu category, women can get loans from Rs 1,000 to Rs 50,000. The Kishor category offers loans between Rs 50,000 and Rs 5 lakh, Tarun category provides loans from Rs 5 lakh to Rs 10 lakh and TarunPlus category provides loans from Rs. 10 Lakh to 20 Lakh.
- Interest Rates: The interest rates under this scheme are competitive and usually lower than the standard market rates.
- Collateral Free: These loans do not require any collateral, making them more accessible to women entrepreneurs.
- Eligibility: Any small or micro-enterprise, other than corporations or farms, is eligible. Women are particularly encouraged to apply for these business loans.
Start-up India Scheme: Encouraging Innovation Among Women
Launched in 2016, Start-up India Scheme aims to promote entrepreneurship across the country. While it’s not exclusively for women, it offers special benefits and incentives to women entrepreneurs, focusing on innovative business models in sectors like technology, education, healthcare, and sustainability. By promoting innovative ideas and providing financial assistance, this scheme helps women venture into new and high-growth industries.
Key Features of the Start-up India Scheme
- Easy Registration Process: Women entrepreneurs can easily register their companies online through a simplified process.
- Tax Advantages: Eligible start-ups are exempt from income tax for the first 3 years.
- Access to Funding: The scheme provides access to funds through a ‘Fund of Funds’ managed by the Small Industries Development Bank of India (SIDBI).
- Incubation Support: Women-led start-ups can also benefit from incubation support, which includes mentorship, networking opportunities, and incubation facilities.
Stree Shakti Yojana: Strengthening Women’s Self-Help Groups
Stree Shakti Yojana is designed for women entrepreneurs who are part of self-help groups (SHGs). It supports women’s entrepreneurship by providing both financial and technical assistance, empowering women by pooling resources and working together in a community-focused economy.
Key Features of Stree Shakti Yojana:
- Loan Amount: Women can avail of unsecured loans up to Rs 1 lakh.
- Interest Concession: The loans under this scheme come with discounted interest rates.
- Eligibility: To be eligible, women must be members of SHGs and have completed the required entrepreneurship training.
- Sectoral Focus: The scheme primarily supports businesses involved in handicrafts, tailoring, and small-scale production.
Cent Kalyani Scheme: Financial Assistance from Central Bank of India
Provided by the Central Bank of India, the Cent Kalyani Scheme supports women entrepreneurs looking to start or expand their businesses. It covers various sectors, including small-scale manufacturing, retail trade, and agriculture. Its flexibility and wide range of applications make it an appealing option for women entrepreneurs in different industries.
Key Features of Cent Kalyani Scheme
- Loan Amount: Women can borrow up to Rs 50 lakh under this scheme.
- No Collateral: No collateral is required to secure the loan.
- Interest Rates: The scheme offers convenient interest rates with no processing charges.
- Eligibility Criteria: This scheme is available to both new and existing women entrepreneurs involved in manufacturing, services, or trading activities.
Udyogini Scheme: Promoting Entrepreneurship Among Economically Weaker Women
The Udyogini Scheme focuses on women’s entrepreneurship and the development of micro and small enterprises, particularly targeting women from economically weaker sections of society. It aims to encourage entrepreneurship by enabling low-income women to start businesses without facing significant financial hurdles.
Key Features of the Udyogini Scheme
- Loan Amount: Women can borrow up to Rs 1 lakh, depending on their business needs.
- Interest Subsidy: Interest subsidies are available to make the loans more affordable.
- Eligibility Criteria: Women aged 18–45 with a family income of less than Rs 50,000 per year are eligible. The income limit is more flexible for widows and differently-abled women.
- Eligible Sectors: The scheme supports businesses in various sectors, including agriculture, retail, and small-scale industries.
Importance of Supporting Women Entrepreneurs
Women entrepreneurs are crucial to the economy because they create jobs, drive innovation, and support sustainable economic growth. However, they often face unique challenges such as limited access to funding, social expectations, and a lack of mentoring. These government-backed schemes play a vital role in addressing these issues and fostering a culture of success for women in business.
How to Apply for These Loan Schemes for Women
Applying for these schemes is very easy, with many offering online applications. For detailed information, women entrepreneurs can visit the official websites of the respective schemes or contact the banks associated with them. Common documents needed include identity and address proof, a business plan, and income proof.
Empowering Women Through Entrepreneurship
With the help of targeted government programs, the future looks promising for women entrepreneurs. These schemes, including Annapurna, PM Mudra Yojana, Start-up India, Stree Shakti, Cent Kalyani, and Udyogini, are not just about financial assistance; they are transforming the business world by helping women overcome economic obstacles and achieve their dreams. By taking advantage of these opportunities, women can realize their business goals and contribute to a more equal and prosperous society.