Government-Backed Loans For Women Entrepreneurs: Planning to start your own business but not sure about the finances? Then you’re not alone in this. For many women in India, a brilliant idea and the drive to succeed often get blocked when it comes to securing funds. That’s where government-backed loan schemes step in, offering much-needed support to women entrepreneurs across the country. Whether you're launching a small home business or scaling up a start-up, there are several financial initiatives that you can choose from. Here’s a look at some of the best government schemes that aim to empower women in business:
Best Government-Backed Loans For Women Entrepreneurs
1. Stand-Up India Scheme
Launched by the Government of India, the Stand-Up India Scheme provides loans between Rs 10 lakh and Rs 1 crore to women and SC/ST entrepreneurs to set up enterprises in manufacturing, services, or trading. According to its official portal, “Composite loan of 85% of the project cost, inclusive of term loan and working capital.” It’s a great starting point if you’re planning to launch your first business.
2. Pradhan Mantri MUDRA Yojana (PMMY)
Under the Pradhan Mantri Mudra Yojana (PMMY), women entrepreneurs can apply for loans through three categories: Shishu, Kishor, and Tarun, depending on the stage and size of the business. As per its official portal, “Pradhan Mantri MUDRA Yojana (PMMY) provides loans up to 10 lakhs to the non-corporate, non-farm small/micro enterprises.” Women can also avail of special interest rate discounts from partnering banks and micro-finance institutions.
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3. Mahila Udyam Nidhi Scheme
This scheme offers financial assistance to women looking to start small-scale businesses. Loans are provided up to Rs 10 lakh with a flexible repayment period of up to 10 years. Startup India's Women Entrepreneurship portal states, “All existing and new MSME or Tiny Units promoted exclusively by women entrepreneurs or a business consisting of a majority of women entrepreneurs are eligible.” It is ideal for women seeking long-term support for ventures in sectors like manufacturing, fashion design, or even service-based businesses.
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4. Dena Shakti Scheme
Offered by Dena Bank, the Dena Shakti Scheme is meant exclusively for women in education, retail, agriculture, and micro-credit businesses. Women entrepreneurs under this scheme can avail of loans with a concession on interest rates. According to Startup India's Women Entrepreneurship portal, “It is the combination of the term loan and the working capital. Women entrepreneurs are eligible for 25 % concessional rates on the loan. The term of loan provided to the women entrepreneurs is from one to three years.” It's particularly useful for those running small businesses in semi-urban or rural areas.
These government loans to support women entrepreneurs are designed to make entrepreneurship more accessible for women.
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