Introduction
In 2025, women entrepreneurs are breaking barriers and establishing their businesses in India, contributing significantly to the economy.
However, one of the main challenges they face is securing adequate financing. Without access to capital, many women struggle to scale their businesses or even start one.
Fortunately, India’s government, banks, and other financial institutions offer several loan schemes for women entrepreneurs to help them overcome financial hurdles. These loan options are designed to provide accessible funding to women, making it easier for them to start, grow, and sustain their businesses.
This article will explore the best small business loan options for women entrepreneurs in India 2025, including government-backed schemes for women entrepreneurs, loans from private lenders, and microfinance institutions.
By understanding these funding options, women entrepreneurs can make informed decisions and take advantage of the financial support available to them.
1. The Challenges Faced by Women Entrepreneurs in India
While India has made significant strides toward empowering women in business, challenges remain. The lack of easy access to business loans for women entrepreneurs is one of the most prominent obstacles. Female entrepreneurs often face:
- Limited access to capital: Banks and financial institutions may be hesitant to provide loans to women-owned businesses due to perceived risks.
- Cultural and social factors: Gender biases and traditional roles can discourage women from seeking financial assistance or expanding their businesses.
- Lack of awareness: Many women are unaware of the various loan schemes and financial products available to them.
- Limited networking: Women entrepreneurs often have fewer networking opportunities, which can hinder access to capital or valuable business contacts.
These barriers make it even more essential for women to have access to loan schemes for women entrepreneurs in India that cater specifically to their needs.
2. Government Schemes and Loan Options for Women Entrepreneurs
The Indian government recognizes the importance of supporting women entrepreneurs. To empower women in business, various government-backed loan schemes for women have been implemented. Let’s take a closer look at the most prominent ones:
2.1 Stand-Up India Scheme
The Stand-Up India Scheme was launched to encourage entrepreneurship among women and Scheduled Castes (SC) and Scheduled Tribes (ST). This scheme offers financial assistance to women entrepreneurs in the form of loans for setting up greenfield (new) projects.
- Eligibility: Women entrepreneurs, SC/ST, and individuals with disabilities.
- Loan Amount: Rs. 10 lakhs to Rs. 1 crore.
- Interest Rate: Competitive rates based on market trends.
- How to Apply: Applications can be made through scheduled commercial banks, including public sector banks.
This scheme encourages women to launch new businesses with easier access to funding.
2.2 Mudra Yojana (Pradhan Mantri Mudra Yojana)
The Mudra Yojana provides financial support to micro, small, and medium enterprises (MSMEs), including women-owned businesses. Under this scheme, women entrepreneurs can avail of loans under three categories: Shishu (up to Rs. 50,000), Kishore (Rs. 50,000 to Rs. 5 lakhs), and Tarun (Rs. 5 lakhs to Rs. 10 lakhs).
- Eligibility: Women entrepreneurs running micro or small businesses.
- Loan Amount: Rs. 50,000 to Rs. 10 lakhs, depending on the business stage.
- Interest Rates: Varies by bank but typically starts from 7% per annum.
- How to Apply: Applications can be made through public and private banks, as well as NBFCs.
Mudra Yojana is one of the most effective schemes for women entrepreneurs with small businesses in India, offering collateral-free loans and minimal documentation.
2.3 Bharatiya Mahila Bank (BMB) Loan Scheme
Before merging with the State Bank of India, the Bharatiya Mahila Bank was created with a focus on providing financial support to women entrepreneurs. Now, loans for women entrepreneurs continue under SBI’s Women’s Entrepreneur Scheme.
- Eligibility: Women running small businesses, both urban and rural.
- Loan Amount: Up to Rs. 50 lakhs.
- Interest Rates: Flexible interest rates tailored to the applicant’s profile.
- How to Apply: Loans are available through the nearest SBI branch.
This scheme provides comprehensive financial support for women entrepreneurs in various sectors.
2.4 Mahila Coir Yojana
The Mahila Coir Yojana supports women entrepreneurs in the coir industry, particularly in rural regions. This scheme offers financial assistance to women entrepreneurs who are involved in manufacturing coir products.
- Eligibility: Women involved in the coir industry, particularly those in rural areas.
- Loan Amount: Varies based on the project size and location.
- How to Apply: Through the Coir Board of India.
This initiative provides significant support for women to set up and expand businesses in the coir manufacturing sector.
2.5 Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
The CGTMSE scheme offers collateral-free loans to women entrepreneurs who are operating micro and small businesses. It ensures that loans are given without the need for asset-based security.
- Eligibility: Women entrepreneurs in the MSME sector.
- Loan Amount: Up to Rs. 2 crores.
- How to Apply: Through participating banks and financial institutions.
CGTMSE simplifies the process for women entrepreneurs to access credit and is one of the best small business loan options for women in India.
3. Private Lenders and Non-Banking Financial Companies (NBFCs)
Apart from government schemes, private banks and NBFCs (Non-Banking Financial Companies) also provide loans for women entrepreneurs in India. These loans typically come with more flexible terms and faster processing.
3.1 Role of Private Lenders
Private lenders are often more agile and can provide quicker approvals and tailored loan products. Many private banks, including ICICI, HDFC, and Axis Bank, offer business loans with attractive interest rates, specifically targeting women entrepreneurs.
- Loan Amount: Varies by lender and business requirements.
- Interest Rate: Typically around 10%-15% per annum.
- How to Apply: Women can apply through the bank's official website or by visiting the branch.
3.2 Top Private Lenders for Women Entrepreneurs in India
- ICICI Bank: Offers business loans to women entrepreneurs with customized repayment schedules.
- HDFC Bank: Offers loans for women entrepreneurs in retail and other industries.
- Axis Bank: Special loan schemes for women entrepreneurs looking to expand their businesses.
These institutions provide both secured and unsecured loans, depending on the business needs.
4. Microfinance Institutions (MFIs) for Women Entrepreneurs
For women entrepreneurs in rural or semi-urban areas, microfinance institutions (MFIs) can be an excellent option. MFIs provide small business loans for women in India with minimal documentation and collateral.
- Eligibility: Women entrepreneurs running small businesses or startups.
- Loan Amount: Small amounts typically ranging from Rs. 5,000 to Rs. 10 lakhs.
- How to Apply: Through the MFI or partner institutions.
Popular MFIs in India that offer business loans to women include Ujjivan Small Finance Bank and SKS Microfinance.
5. Specialized Loans for Women Entrepreneurs in Specific Sectors
Some loan schemes are tailored to women entrepreneurs in specific sectors. These loans are designed to address the unique needs of women in industries like technology, agriculture, retail, and e-commerce.
5.1 Women in Technology
Government Grants for Women in Technology: The government provides various schemes to encourage women in the tech industry. Venture Capital Funding is also available for women-led startups.
5.2 Women in Agriculture
NABARD (National Bank for Agriculture and Rural Development) offers loans specifically for women in agriculture, helping them build agro-based businesses.
6. How to Apply for Business Loans for Women Entrepreneurs
The process of applying for business loans for women can vary depending on the lender. Here’s a general guide on how to apply:
- Documentation: Required documents typically include a business plan, financial statements, proof of identity, and address.
- Application Process: Women can apply online through the bank’s or financial institution’s portal or visit their nearest branch.
- Eligibility Criteria: Women entrepreneurs need to meet specific eligibility criteria, such as the nature of the business, its age, and turnover.
Conclusion
Women entrepreneurs in India now have access to a wide range of business loan schemes for women to support their ventures. With the right knowledge of available options, women can secure the funding they need to overcome financial barriers and grow their businesses.
Whether through government-backed schemes, private lenders, or microfinance institutions, the opportunities are vast. By leveraging these resources, women entrepreneurs can confidently move forward in their entrepreneurial journey.
If you are a woman entrepreneur in India looking to take your business to the next level, explore these loan schemes and take the first step towards achieving your business goals.