India is witnessing a vibrant wave of women entrepreneurship. From metropolitan cities to small towns, women across the country are breaking stereotypes, launching businesses, and contributing significantly to economic development. But like any journey, entrepreneurship comes with challenges — access to funding, market exposure, mentorship, and regulatory support.
Recognising these hurdles, the Government of India has introduced a host of initiatives and schemes specifically designed to support and promote women entrepreneurs. These schemes provide a much-needed springboard — financially, structurally, and institutionally.
In this blog, we explore the major Government schemes that aim to empower women in business, offering you a comprehensive guide to navigate these resources.
Why Support for Women Entrepreneurs Matters
Before diving into the schemes, let’s understand the broader context.
Women-led businesses constitute around 20% of all MSMEs in India, contributing significantly to GDP and employment. However, access to credit and institutional support remains uneven. Traditional gender roles, lack of collateral, and limited financial literacy can act as barriers.
That’s where Government schemes step in — bridging the gap with targeted financial assistance, training programmes, and subsidised resources tailored for women entrepreneurs.
Stand-Up India Scheme
Launched in 2016, the Stand-Up India scheme is a flagship initiative to promote entrepreneurship among women and SC/ST communities.
Key Features:
- Provides bank loans between ₹10 lakh and ₹1 crore
- For setting up a greenfield enterprise in manufacturing, services, trading, or agri-allied activities
- Minimum 51% shareholding and controlling stake should be held by a woman (or SC/ST) entrepreneur
- The loan includes both term loan and working capital
Benefits:
- Loans are offered at competitive interest rates
- Collateral requirements may apply, but credit guarantee coverage is available through NABARD’s Credit Guarantee Scheme
- Promotes job creation, especially in Tier 2 and Tier 3 cities
Real Impact:
As of 2023, over 1.5 lakh women entrepreneurs have benefitted from this scheme, many of them first-generation business owners.
Mahila Udyam Nidhi Scheme (by SIDBI)
The Mahila Udyam Nidhi Scheme, previously run by the Small Industries Development Bank of India (SIDBI), now functions under broader SIDBI financing programmes.
Key Features:
- Offers soft loans up to ₹10 lakh
- Long repayment period of up to 10 years with a moratorium period
- Interest rates are flexible depending on the business nature and creditworthiness
Best For:
- Small manufacturing units
- Service-based micro-enterprises
- Women-led businesses in semi-urban and rural regions
Additional Support:
SIDBI also conducts entrepreneurship development and skill enhancement programmes under its women-centric financing initiatives.
TREAD Scheme (Trade Related Entrepreneurship Assistance and Development)
This scheme focuses on enabling women by facilitating credit, training, and information access via NGOs.
Key Features:
- The Government grants up to 30% of the total project cost, routed through NGOs
- The remaining 70% is arranged by participating financial institutions as a loan
- NGOs also offer capacity-building, training, and market linkage support
Target Audience:
- Women with entrepreneurial aspirations but lack of financial background
- Those in rural or marginalised communities
Strength:
Though implementation has been limited in recent years, the TREAD scheme remains a unique model combining financial assistance with skill-building and mentorship.
Pradhan Mantri MUDRA Yojana (PMMY)
Though not exclusively for women, PMMY has become a major source of funding for female entrepreneurs through the MUDRA (Micro Units Development & Refinance Agency) loans.
Loan Categories:
- Shishu: Up to ₹50,000 – for beginners
- Kishor: ₹50,001 to ₹5 lakh – for established enterprises needing more funds
- Tarun: ₹5 lakh to ₹10 lakh – for scaling operations
Women-Centric Incentives:
- Lower interest rates for women applicants
- Collateral-free credit
- Higher preference during loan disbursement
Popular Sectors Funded:
- Beauty salons
- Tailoring businesses
- Home-based food ventures
- Handicrafts and artisan products
Impact:
Over 70% of MUDRA loan accounts belong to women — making it one of the most accessed schemes by women entrepreneurs in India.
Annapurna Scheme
This scheme is ideal for women looking to establish food catering businesses.
Key Features:
- Loan up to ₹50,000 offered by State Bank of India and select cooperative banks
- Can be used for buying kitchen equipment like mixers, stoves, utensils, tiffin boxes, etc.
- Repayment tenure up to 36 months with a grace period
Target Beneficiaries:
- Women in the food services industry
- Aspiring tiffin service operators or small catering business owners
Impact:
The Annapurna Scheme empowers women through support for traditional food-based enterprises, although its availability is region-specific.
Udyam Sakhi Portal
Not a loan scheme, but equally powerful, the Udyam Sakhi Portal is a government-backed initiative to digitally empower women entrepreneurs.
Services Provided:
- Information on government schemes
- Guidance on business plan preparation
- E-learning modules and mentorship
- Market support and access to funding options
Why It’s Valuable:
Women who aren’t sure where to start can access a one-stop portal for hand-holding support from ideation to funding to execution.
Nari Shakti in Startup India
The Startup India programme, under the Department for Promotion of Industry and Internal Trade (DPIIT), has several incentives for women-led startups.
Key Features:
- Women entrepreneurs are encouraged to apply for Government tenders without the usual “prior experience” criteria
- Access to the ₹10,000 crore Fund of Funds for Startups (FFS), managed via SEBI-registered Alternative Investment Funds (AIFs)
- Startup mentorship hubs and incubators give preference to women entrepreneurs
- Tax exemptions for three consecutive years
Added Bonus:
Various state governments also offer special startup grants and reimbursements to women-led ventures registered under Startup India.
State-Level Schemes for Women Entrepreneurs
In addition to national schemes, various Indian states have launched region-specific initiatives:
Tamil Nadu:
Tamil Nadu Corporation for Development of Women provides subsidised loans and training to Self-Help Groups (SHGs).
Maharashtra:
The “Udyogini Scheme” offers loans up to ₹3 lakh at a low interest rate through the Women Development Corporation.
Karnataka:
Offers 50% subsidy on loans up to ₹10 lakh for SC/ST women under the ‘Asare’ scheme.
West Bengal:
The ‘WBWEDC’ offers capacity-building and seed capital to women-led micro-enterprises.
State schemes often have simpler eligibility criteria and are more responsive to local needs.
Challenges in Accessing These Schemes
Despite the diversity of schemes, many women still find them difficult to access. Common barriers include:
- Limited awareness at the grassroots level
- Documentation requirements and bureaucratic delays
- Lack of mentorship and business acumen
- Need for digital and financial literacy
The Way Forward:
- Digital outreach, mobile-based applications, and simplified documentation can help
- Government–NGO partnerships can make these schemes more accessible in rural India
- Encouraging banks and NBFCs to hold dedicated awareness camps for women entrepreneurs
How Women Can Maximise These Opportunities
To truly benefit from these schemes, women entrepreneurs should:
- Regularly check updates on portals like MSME Sampark, Stand-Up India, and Udyam Sakhi
- Work with local NGOs or women entrepreneur cells to understand eligibility
- Join networking platforms such as FICCI FLO, WE Hub, and Womennovator
- Attend Government-organised entrepreneurship development workshops
Final Thoughts:
India’s economy cannot grow inclusively without the active participation of women. The Government schemes for women entrepreneurs aren’t just policies — they are instruments of empowerment, equity, and opportunity.
From catering kitchens in Patna to fintech startups in Bengaluru, women across India are scripting success stories — powered by these schemes.
If you are a woman with a business dream, now is the time to act. Explore these schemes, connect with mentors, and take that leap. Because when women rise, the entire nation rises with them.
