Women entrepreneurship in India has grown substantially over the past decade — driven by digital access, government policy support, and a visible shift in social attitudes toward women-led businesses. Despite this momentum, access to formal business credit remains one of the most consistent challenges women entrepreneurs report. The good news is that the lending ecosystem — from government schemes to private sector products — has responded with an increasingly wide range of options specifically structured for women borrowers.
Here are ten of the most relevant and accessible business loan options for women entrepreneurs in India in 2026.
1. Mudra Loan Under PM Mudra Yojana
The Pradhan Mantri MUDRA Yojana remains one of the most accessible formal credit products for small business owners across India, with women borrowers making up a significant majority of active accounts.
MUDRA loans are available through banks, NBFCs, and MFIs in three tiers — Shishu for loans up to ₹50,000, Kishore for ₹50,000 to ₹5 lakh, and Tarun for ₹5 lakh to ₹10 lakh. They are collateral-free and require minimal documentation. Several lenders offer preferential interest rates for women borrowers under the MUDRA umbrella.
2. Stree Shakti Package — State Bank of India
SBI’s Stree Shakti Package is designed specifically for women who hold a majority stake in their business and have enrolled in Entrepreneurship Development Programmes run by state agencies. Eligible borrowers receive a concession of 0.05% on the interest rate for loans above ₹2 lakh — a small but meaningful acknowledgement of the programme’s intent to make credit accessible.
3. Mahila Udyam Nidhi Scheme — Punjab National Bank
PNB’s Mahila Udyam Nidhi scheme offers loans up to ₹10 lakh to women entrepreneurs for setting up new small-scale ventures or expanding existing ones. The scheme comes with a soft loan component and a longer repayment tenure of up to ten years, including a moratorium period that gives new businesses time to generate revenue before full EMI obligations begin.
4. Cent Kalyani Scheme — Central Bank of India
Cent Kalyani covers a broad range of activities — village and cottage industries, retail trade, small enterprises, and professional services. It offers loans up to ₹1 crore without the requirement of collateral or a guarantor, and specifically targets women entrepreneurs across rural and urban segments.
5. Dena Shakti Scheme
Available through Bank of Baroda following the bank’s merger with Dena Bank, the Dena Shakti scheme provides loans to women in agriculture, manufacturing, micro-credit, retail, and education sectors. Concessions of up to 0.25% on interest rates for eligible women borrowers make this one of the more attractively priced government-backed products.
6. Udyogini Scheme — NABARD and Participating Banks
The Udyogini scheme, facilitated through NABARD, targets women from weaker economic sections with loans up to ₹3 lakh for income-generating activities. Women from SC/ST categories or those who are widowed or physically disabled may access the scheme at subsidised or zero interest rates depending on eligibility.
7. Small Business Loans From NBFCs — Fullerton, Lendingkart, Indifi
Beyond government schemes, a range of NBFCs and fintech lenders have built unsecured business loan products that assess women-owned businesses on revenue data, GST filing history, and cash flow statements rather than traditional collateral. Lendingkart, Fullerton Finance, and Indifi Finance offer business loans up to ₹50 lakh for MSMEs with repayment flexibility suited to seasonal or growth-stage businesses.
8. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
CGTMSE is not a loan product itself but a guarantee scheme that enables women entrepreneurs to access collateral-free loans through participating banks and NBFCs. By providing a government-backed credit guarantee, it removes the collateral barrier that prevents many women — who may not hold independently titled assets — from accessing institutional credit. Loans up to ₹2 crore are covered under the guarantee.
9. Annapurna Scheme
The Annapurna scheme specifically targets women entrepreneurs in the food catering industry — a sector with significant female participation. It offers loans up to ₹50,000 for establishing or expanding food catering businesses, with relatively simple documentation and a guarantor requirement. While the loan amount is modest, the scheme’s targeted nature makes it highly relevant for its intended segment.
10. Stand Up India Scheme
The Stand Up India scheme enables at least one woman borrower per bank branch to access loans between ₹10 lakh and ₹1 crore for setting up greenfield enterprises in manufacturing, services, or trading. The scheme includes credit guarantee support and handholding from SIDBI, making it particularly valuable for first-generation women entrepreneurs attempting to establish formal businesses at a meaningful scale.
Frequently Asked Questions (FAQs)
Q1. Do women entrepreneurs need to provide collateral for government-backed business loans?
A: Many government schemes — particularly those backed by CGTMSE — are specifically designed to be collateral-free. MUDRA loans at all tiers are collateral-free. However, larger loan amounts under schemes like Stand Up India may require collateral depending on the lending bank’s individual assessment. The CGTMSE guarantee covers many such situations, making collateral-free access possible even for larger amounts.
Q2. Is there a minimum business vintage required for women entrepreneur loans?
A: Requirements vary by product. MUDRA loans and some NBFC products are available for new businesses and even pre-revenue ventures. Bank-based schemes typically prefer businesses with at least six months to one year of operational history. For larger loan amounts, two to three years of business vintage with documented financials is generally expected.
Q3. Can a woman entrepreneur access multiple government schemes simultaneously?
A: Accessing the same type of benefit under multiple overlapping schemes is typically restricted. However, a woman entrepreneur may simultaneously hold a MUDRA loan for working capital and access CGTMSE-backed credit for expansion, provided the combined borrowing remains within overall eligibility limits and both lenders are aware of the concurrent borrowings as required under KYC and credit disclosure norms.
Q4. How does the interest rate concession for women borrowers work in practice?
A: Most scheme-linked concessions range from 0.05% to 0.25% below the standard applicable rate. While these reductions appear small, they translate to meaningful savings over loan tenures of five to ten years on amounts of several lakhs. Combined with the collateral-free structure and longer moratorium periods available under specific schemes, the effective cost advantage is more substantial than the headline rate reduction suggests.
Q5. What is the first step a woman entrepreneur should take before applying for any of these loans?
A: Register your business under Udyam Registration — the government’s MSME registration portal — before approaching any lender. Udyam Registration is free, takes under thirty minutes, and is the primary credential that qualifies you for most government-backed schemes and interest subventions. Without it, several scheme benefits are inaccessible even if you otherwise qualify.
