Access exclusive government funding schemes for women entrepreneurs. Stand-Up India loans (₹10L-₹1Cr), TREAD grants with 30% subsidy, Mudra Yojana, and multiple women-focused schemes designed to empower female business owners across India.
Government Funding Schemes for Women Entrepreneurs in India
The Government of India recognizes the critical role of women in economic development and has established numerous schemes specifically designed to empower women entrepreneurs. These programs go beyond just financial support – they address the unique challenges women face in starting and scaling businesses through preferential lending terms, dedicated training programs, and comprehensive handholding support.
Women entrepreneurs enjoy special benefits across multiple dimensions: Lower interest rates (typically 0.25-0.5% less than standard rates), Relaxed collateral requirements with CGTMSE guarantee schemes, Priority lending with dedicated quotas at bank branches, Extended repayment tenures with moratorium periods, Free or subsidized training programs, Market access and networking support, and Preferential treatment in government tenders.
From small-scale enterprises through Mudra Yojana (₹50K-₹10 Lakhs) to substantial business ventures via Stand-Up India (₹10 Lakhs-₹1 Crore), the funding ecosystem covers every stage of business growth. Whether you're a first-time entrepreneur with a home-based business idea or an experienced professional planning to scale your venture, there's a scheme tailored to your needs.
With over 15+ Central and State schemes, combined funding potential exceeding ₹2-3 Crores, and additional benefits like skill training through TREAD, women entrepreneurs in India have unprecedented access to resources for building successful businesses.
Major Women Entrepreneur Funding Schemes
Stand-Up India Scheme
₹10 Lakhs to ₹1 Crore
Ministry/Bank:
Ministry of Finance / SIDBI
Type:
Bank Loan (Composite)
Focus: Greenfield enterprises in manufacturing, services, trading sectors
Eligibility: Women above 18, SC/ST categories, new enterprises
TREAD Scheme
Up to 30% Subsidy on Project Cost
Ministry/Bank:
Ministry of MSME
Type:
Grant + Loan
Focus: Trade-related entrepreneurship training and development
Eligibility: Through registered NGOs/institutions for women in trade
Mudra Yojana
Shishu: ₹50K | Kishore: ₹5L | Tarun: ₹10L
Ministry/Bank:
Ministry of Finance / MUDRA Ltd
Type:
Collateral-Free Loan
Focus: Micro and small enterprises across all sectors
Eligibility: Women entrepreneurs, no collateral required
Mahila Udyam Nidhi Scheme
Up to ₹10 Lakhs
Ministry/Bank:
Small Industries Development Bank of India
Type:
Loan
Focus: Small-scale industries owned by women
Eligibility: Women entrepreneurs in manufacturing/services
Stree Shakti Package
Variable (0.5% Interest Concession)
Ministry/Bank:
State Bank of India
Type:
Special Package
Focus: All business types with women majority ownership
Eligibility: 51%+ women ownership, reduced interest rate
Annapurna Scheme
Up to ₹50,000
Ministry/Bank:
Various Banks
Type:
Loan
Focus: Food catering businesses run by women
Eligibility: Women in food service/catering sector
Composite loan covering term loan, working capital, and margin money for greenfield projects.
Term loan for fixed assets
Working capital for operations
Up to 25% margin money
7-year repayment tenure
18-month moratorium available
Special Features
MCLR + 3%
Interest rate linked to Marginal Cost of Funds based Lending Rate plus spread.
CGTMSE guarantee available
Hand-holding support via Stand-Up Connect
Free skill training programs
Mandatory: 1 woman per branch
Digital portal for tracking
Greenfield Enterprise Definition: Stand-Up India supports only NEW ventures (greenfield projects) in manufacturing, services, or trading sector. Existing businesses or expansion projects are not covered. The enterprise should be registered after the scheme launch (April 2016) to qualify.
Popular Business Sectors for Women Entrepreneurs
Fashion & Apparel
Beauty & Salon
Jewelry & Handicrafts
Food & Catering
Bakery & Confectionery
Retail Store
Educational Services
Daycare & Preschool
Tailoring & Boutique
Home Decor
IT & Digital Services
Healthcare Services
Event Management
Art & Craft
Online Business
Consulting Services
General Eligibility for Women Entrepreneur Schemes
Gender & Age
Indian woman citizen, 18 years or above
Business Ownership
Minimum 51% ownership by women in partnership/company; 100% for proprietorship
Business Registration
Registered entity - proprietorship, partnership, LLP, or private limited company
Credit History
No existing loan defaults, good credit score, clean financial record
Business Viability
Detailed business plan with realistic financial projections and market analysis
Project Type
New ventures for schemes like Stand-Up India; existing businesses for others
Educational Background
Some schemes prefer or require specific educational qualifications
Category Benefits
Additional benefits for SC/ST women, rural women, first-generation entrepreneurs
Application Process for Women Entrepreneur Funding
1
Scheme Identification
Identify most suitable scheme based on business type, funding requirement, and stage of business (new vs existing)
2
Business Plan Preparation
Develop comprehensive business plan including executive summary, market analysis, financial projections, operational plan
3
Business Registration
Complete business registration if not already done - proprietorship, partnership, LLP, or company as per scheme requirements
4
Document Compilation
Gather all required documents including identity proofs, address proofs, educational certificates, property papers if collateral
5
Bank/Institution Selection
For Stand-Up India/Mudra - approach designated bank branch. For TREAD - contact eligible NGOs. For others - relevant institutions
6
Application Submission
Submit completed application form along with business plan and all supporting documents to selected bank/institution
7
Evaluation & Verification
Bank/institution evaluates business viability, conducts field visit, verifies documents, assesses creditworthiness
8
Interview & Presentation
Attend interview with loan committee, present business model, answer questions about operations and projections
9
Approval & Disbursement
Upon approval, complete formalities, sign loan/grant agreement, fulfill any conditions, receive fund disbursement
Special Benefits for Women Entrepreneurs
Lower Interest Rates
0.25-0.5% interest concession compared to regular borrowers
Relaxed Collateral
Reduced or no collateral requirements with CGTMSE coverage
Higher Guarantee
Up to 80% CGTMSE guarantee vs 75% for others
Priority Lending
Mandatory quota at banks, dedicated women entrepreneur desks
Extended Tenure
Longer repayment periods with flexible moratorium options
Free Training
Entrepreneurship development programs and skill training
Mentorship Support
Access to experienced mentors and women business networks
Market Access
Government tender preferences, buyer-seller meets
Processing Fee Waiver
Reduced or waived processing fees on loan applications
Insurance Coverage
Credit guarantee and risk mitigation support
State-Level Women Entrepreneur Schemes
Many states have additional schemes specifically for women entrepreneurs:
Gujarat
Mukhyamantri Mahila Kalyan Yojana
Financial assistance & training
Maharashtra
Rajmata Jijau Mahila Udyam Yojana
Interest subsidy up to 5%
Tamil Nadu
Tamil Nadu Women Entrepreneurship Scheme
25% capital subsidy
Kerala
Kudumbashree Mission
Interest-free loans for women SHGs
Karnataka
Karnataka Mahila Abhivruddi Yojana
Loan subsidy & training
Rajasthan
Bhamashah Yojana
Financial assistance to women entrepreneurs
West Bengal
Lakshmir Bhandar Scheme
Monthly cash assistance
Andhra Pradesh
Mahila Abhivruddhi Society Scheme
Microfinance support
Telangana
WE Hub Support
India's first state-led incubator for women
Punjab
Punjab Women Entrepreneurship Scheme
Interest subsidy on loans
Pro Tip: Many state schemes can be combined with central schemes like Mudra or Stand-Up India for maximum benefit. Contact your State MSME Department or Women Development Corporation for details.
Mudra Yojana for Women Entrepreneurs
Shishu
Up to ₹50,000
Start-up / Early Stage
For businesses in inception stage requiring small capital
No collateral
Simple process
Quick approval
Kishore
₹50,000 to ₹5 Lakhs
Growth Stage
For established businesses needing expansion capital
No collateral
Working capital
Equipment purchase
Tarun
₹5 Lakhs to ₹10 Lakhs
Expansion Stage
For well-established businesses planning major expansion
No collateral
Large investments
Business scaling
Women Entrepreneur Advantage: Women get priority in Mudra loans with faster processing, dedicated help desks at banks, and connection to women-focused entrepreneurship development programs.
What We Help You With
Eligibility Assessment for All Schemes
Best Scheme Selection Strategy
Comprehensive Business Plan Writing
Financial Projections & Analysis
Market Research & Feasibility Study
Application Form Completion
Document Preparation & Verification
Bank/Institution Liaison
Interview Preparation & Coaching
Collateral Documentation Support
CGTMSE Application Assistance
Post-Approval Compliance Support
Keys to Successful Funding Application
Strong Business Plan
Detailed, realistic plan with clear revenue model and growth strategy
Financial Clarity
Well-researched projections backed by market data and assumptions
Market Understanding
Deep knowledge of target market, customers, and competition
Complete Documentation
All required documents properly organized and verified
Credit History
Clean credit score, no loan defaults, proper financial discipline
Realistic Funding Ask
Request amount matching business needs, not over or under
Professional Presentation
Confident presentation of business idea during interviews
Follow-Up Discipline
Timely response to queries and proactive communication
Women Entrepreneur Schemes Comparison
Scheme
Max Amount
Collateral
Best For
Stand-Up India
₹1 Crore
CGTMSE Available
New Large Ventures
Mudra - Tarun
₹10 Lakhs
Not Required
Growing Businesses
Mudra - Kishore
₹5 Lakhs
Not Required
Small Expansion
Mudra - Shishu
₹50,000
Not Required
Start-ups
TREAD
30% Subsidy
Not Applicable
Training + Credit
Mahila Udyam Nidhi
₹10 Lakhs
Minimal
Women in Manufacturing
Annapurna
₹50,000
Not Required
Food Business
Common Mistakes to Avoid
✗
Applying for wrong scheme not matching business stage or sector
✗
Incomplete or poorly prepared business plan without proper market research
✗
Unrealistic financial projections that don't match industry standards
✗
Missing or incorrect documentation leading to application rejection
✗
Not maintaining minimum women ownership percentage (51%+)
✗
Poor credit history or existing loan defaults not disclosed
✗
Applying for amount much higher or lower than actual business needs
✗
Not understanding repayment terms and cash flow implications
✗
Ignoring scheme-specific requirements like 'greenfield' for Stand-Up India
✗
Weak interview presentation without proper business knowledge
✗
Not leveraging special benefits available specifically for women
✗
Mixing up grant schemes (non-repayable) with loan schemes
Training & Support Resources for Women Entrepreneurs
Stand-Up Connect Centres
Provider: SIDBI
Benefit: Free handholding support, business mentoring, connect to markets
Available across India at SIDBI branches
Entrepreneurship Development Programs
Provider: NIESBUD, EDI, District Industries Centres
Benefit: Free/subsidized training on business management, finance, marketing
Regular batches in major cities
Women Business Development Centres
Provider: State Governments
Benefit: Business counseling, skill training, market linkages
District and state-level centres
TREAD Training Programs
Provider: Partner NGOs/Institutions
Benefit: Trade-specific training with credit linkage support
Through registered TREAD implementing agencies
WE Hub (Women Entrepreneurs Hub)
Provider: Telangana Government
Benefit: India's first state-led incubator exclusively for women
Physical presence in Hyderabad, online programs
FICCI FLO (Ladies Organisation)
Provider: FICCI
Benefit: Networking, mentorship, business opportunities
Membership-based, chapters across India
Financial Management Best Practices
Separate Business & Personal Finances
Maintain separate bank accounts and credit cards for business transactions
Maintain Proper Books of Accounts
Regular bookkeeping, invoicing, and financial record maintenance
Monitor Cash Flow Carefully
Track daily inflows and outflows, maintain adequate working capital
Plan for Loan Repayment
Set aside EMI amount before spending on other expenses
Build Good Credit History
Timely repayment of loans and credit card dues to maintain score
Invest in Business Growth
Use loan funds wisely for productive assets, not personal expenses
Keep Tax Compliance Current
File GST returns, income tax returns on time for financial credibility
Create Emergency Fund
Maintain 3-6 months operating expense buffer for uncertainties
Types of Successful Women-Led Businesses (Funded through Government Schemes)
Home-Based Food Business
Homemade pickles, snacks, catering services grown to commercial scale
Started with Mudra Shishu ₹25K, scaled to Kishore ₹2L
Boutique & Fashion Design
Small tailoring shop expanded to designer boutique with online presence
Stand-Up India ₹15 Lakhs for retail setup and inventory
Beauty Salon Chain
Single salon expanded to 3 outlets with trained staff
Mudra Tarun ₹8 Lakhs + state scheme subsidy
Education & Training Centre
Skill training institute for women in rural areas
TREAD training support + Stand-Up India ₹25 Lakhs
Organic Product Manufacturing
Organic cosmetics and wellness products with retail distribution
Mahila Udyam Nidhi ₹8 Lakhs for manufacturing setup
Digital Services Agency
Freelance designer to full-service digital marketing agency
Mudra Kishore ₹3 Lakhs for team and infrastructure
Why Apply for Women Entrepreneur Funding with Saarthium?
Deep Knowledge of Women-Focused Schemes
Experience with Stand-Up India Applications
Strong Bank Network & Relationships
Expert Business Plan Writing
High Application Success Rate
Personalized Scheme Selection
Complete Documentation Support
Interview Preparation & Coaching
CGTMSE & Collateral Assistance
Post-Approval Compliance Guidance
Women Entrepreneur Network Access
End-to-End Handholding Support
Additional Incentives for Women Entrepreneurs
Government Procurement Preference
Public Procurement Policy reserves quotas for women-owned MSEs in government tenders
✓ Access to large government contracts with less competition
Stamp Duty & Registration Fee Concession
Many states offer reduced stamp duty and registration fees for property/business registration
✓ Save significant amount on legal registrations
Patent & Trademark Fee Concession
50% reduction in patent filing fees for women entrepreneurs
✓ Lower cost for intellectual property protection
Exhibition & Trade Fair Subsidies
Subsidized participation in national and international exhibitions
✓ Market exposure at reduced cost
Free/Subsidized Consultancy Services
Access to free business counseling, legal advice, and technical consultancy
✓ Expert guidance without high fees
Industrial Plot Allotment Preference
Priority in allotment of industrial plots and sheds at subsidized rates
✓ Reduced infrastructure setup cost
Important Points to Remember
Women must hold minimum 51% ownership in partnership/company for eligibility
Stand-Up India is only for NEW ventures (greenfield) started after 2016
Mudra loans are collateral-free but require good credit history
TREAD scheme works through NGOs - identify registered implementing agencies
Interest rate concessions (0.25-0.5%) apply automatically for women entrepreneurs
Stand-Up India (up to ₹1Cr), institutional investors
Ready to Start Your Entrepreneurial Journey?
Don't let funding be a barrier to your business dreams. With the right guidance and scheme selection, you can access substantial government support designed specifically for women entrepreneurs.
15+
Funding Schemes Available
₹1Cr+
Maximum Loan Amount
No Collateral
For Most Schemes
Free consultation to identify best funding scheme for your business
Expert business plan preparation with realistic projections
What government schemes are available for women entrepreneurs in India?
India offers numerous schemes exclusively or preferentially for women: Stand-Up India (₹10 Lakhs to ₹1 Crore bank loans), TREAD Scheme (30% subsidy for training and development), Mudra Yojana (₹50K to ₹10 Lakhs without collateral), Mahila Udyam Nidhi Scheme, Stree Shakti Package for Women Entrepreneurs, Annapurna Scheme for food catering, Bharatiya Mahila Bank Business Loans, Dena Shakti Scheme, CGTMSE Collateral-Free Guarantee, Cent Kalyani Scheme, and various state-specific women entrepreneur schemes. Combined with lower interest rates and relaxed collateral requirements, women can access substantial funding.
What is Stand-Up India Scheme for women?
Stand-Up India is a flagship scheme by Government of India to promote entrepreneurship among women and SC/ST communities. It mandates banks to provide at least one loan to a woman borrower per branch. Loan amount: ₹10 Lakhs to ₹1 Crore for greenfield enterprises (new ventures) in manufacturing, services, or trading sector. Features include: Composite loan covering both term loan and working capital, Margin money up to 25% of project cost, Repayment tenure up to 7 years with moratorium, Interest rate linked to MCLR plus 3% spread, and dedicated Stand-Up Connect Centres for handholding support.
Who is eligible for women entrepreneur grants?
General eligibility for women entrepreneur schemes: Indian woman citizen above 18 years, Business should be owned by women (minimum 51% ownership in case of partnership/company; 100% for proprietorship), Business must be registered (proprietorship, partnership, LLP, or company), Should be a first-generation entrepreneur for some schemes, No existing loan defaults or credit issues, Viable business plan with proper projections, Educational qualifications (some schemes), Some schemes specifically target SC/ST women, rural women, or specific sectors. Each scheme has specific additional criteria.
What is TREAD Scheme?
TREAD (Trade Related Entrepreneurship Assistance and Development) is a scheme by Ministry of Micro, Small & Medium Enterprises specifically for developing women entrepreneurs in trade. The scheme provides Government Grant up to 30% of total project cost to NGOs for undertaking programmes including training, counseling, and extension activities, Loan component at concessional rates for actual setting up of enterprises, Focus on skill development, market linkages, technology support, and business incubation for women in trade sector. TREAD works through registered NGOs and institutions who conduct training programs and then facilitate credit linkages.
How to apply for women entrepreneur funding?
Application process varies by scheme: For Stand-Up India - Visit designated bank branch, submit business plan with required documents, bank processes loan through Stand-Up India portal. For Mudra Yojana - Approach any bank, NBFC, or MFI offering Mudra loans, submit application with business plan. For TREAD - Contact eligible NGOs/institutions running TREAD programs in your area, participate in training, then apply for credit. For State Schemes - Contact State MSME Department or Women Development Corporation. General steps: (1) Identify suitable scheme, (2) Prepare comprehensive business plan, (3) Compile all required documents, (4) Submit application through proper channel, (5) Attend interviews/meetings, (6) Fulfill any additional requirements, (7) Receive funding.
Can women get collateral-free business loans?
Yes, several schemes offer collateral-free loans to women: Mudra Yojana (up to ₹10 Lakhs) requires no collateral, Stand-Up India provides CGTMSE guarantee coverage reducing collateral requirements, CGTMSE Scheme specifically covers loans up to ₹2 Crores for women entrepreneurs with 80% guarantee (reducing effective collateral), Stree Shakti Package offers concession on interest rates and collateral norms. Additionally, women entrepreneurs get preferential treatment with lower interest rates (0.25-0.5% concession), easier approval norms, and dedicated credit guarantee schemes.