Government Schemes for Women Entrepreneurs in India (2026 Updated)
India has witnessed a remarkable rise in women-led businesses over the past decade, with over 20% of all new business registrations now coming from women entrepreneurs. To accelerate this growth, the central and state governments have introduced a wide range of financial assistance schemes, tax incentives, skill development programmes, and institutional support specifically designed for women who want to start or scale their businesses. This comprehensive guide covers every major government scheme available for women entrepreneurs in India in 2026, including eligibility criteria, benefits, application process, and practical tips for maximizing each opportunity.
Central Government Schemes for Women Entrepreneurs
The Government of India, through various ministries and institutions like the Ministry of MSME, Ministry of Finance, SIDBI, NABARD, and NITI Aayog, offers several schemes that directly benefit women business owners.
1. Pradhan Mantri Mudra Yojana (PMMY)
The PMMY (Mudra Yojana) is the most widely used government scheme for small business loans in India. It provides collateral-free loans up to Rs. 10 lakh to non-corporate, non-farm small and micro enterprises through banks, NBFCs, and micro-finance institutions.
| Category | Loan Amount | Target Businesses |
|---|---|---|
| Shishu | Up to Rs. 50,000 | Very small and startup-stage businesses |
| Kishore | Rs. 50,001 to Rs. 5 lakh | Growing small businesses seeking expansion capital |
| Tarun | Rs. 5,00,001 to Rs. 10 lakh | Established small businesses ready for further growth |
Women borrowers account for over 68% of all Mudra loan accounts, making this the most impactful scheme for women micro-entrepreneurs. No collateral, no processing fee for small amounts, and no minimum qualification requirements make this scheme highly accessible.
2. Stand Up India Scheme
The Stand Up India Scheme provides bank loans between Rs. 10 lakh and Rs. 1 crore to at least one woman borrower and one SC/ST borrower per bank branch for setting up a greenfield (new) enterprise. The scheme covers manufacturing, service, and trading sectors.
- Loan amount: Rs. 10 lakh to Rs. 1 crore (covers up to 75% of the project cost)
- Repayment period: Up to 7 years with moratorium period of up to 18 months
- Interest rate: Lowest applicable rate of the bank, not exceeding base rate plus 3%
- Ownership requirement: Woman must hold at least 51% of the shareholding in the enterprise
- Only for new businesses: Not available for expansion or takeover of existing units
3. Credit Guarantee Fund Trust (CGTMSE)
The CGTMSE scheme is a game-changer for women entrepreneurs who lack collateral for bank loans. Established by the Ministry of MSME and SIDBI, the scheme guarantees collateral-free credit to micro and small enterprises.
- Maximum guarantee cover: Up to Rs. 5 crore
- Higher coverage for women: 85% guarantee for loans up to Rs. 5 lakh (compared to 75% for others)
- No collateral or third-party guarantee required from the borrower
- Annual guarantee fee: 1% to 2% of the outstanding credit
- Available through: All commercial banks, RRBs, and small finance banks
4. Prime Minister's Employment Generation Programme (PMEGP)
The PMEGP is one of the most generous subsidy schemes for new manufacturing and service sector units. Women receive significantly higher subsidies compared to general category applicants.
| Category | Beneficiary Contribution | Subsidy (Urban) | Subsidy (Rural) |
|---|---|---|---|
| General Category | 10% of project cost | 15% | 25% |
| Women / SC / ST / OBC / Minorities / Ex-Servicemen / Differently Abled | 5% of project cost | 25% | 35% |
For example, a woman starting a food processing unit in a rural area with a project cost of Rs. 25 lakh would need to contribute only Rs. 1.25 lakh (5%), receive a subsidy of Rs. 8.75 lakh (35%), and the remaining Rs. 15 lakh would be a bank loan. Applications can be submitted online through the KVIC portal (kviconline.gov.in).
5. Startup India Scheme
Women-led startups registered as Private Limited Companies, LLPs, or Partnership Firms can apply for Startup India DPIIT recognition and access:
- 3-year tax holiday under Section 80-IAC (exemption from income tax for any 3 consecutive years within the first 10 years)
- Self-certification under 6 labour laws and 3 environmental laws, reducing compliance burden
- Fast-tracked patent examination at reduced fees (80% rebate on patent filing fees)
- Startup India Seed Fund Scheme offering up to Rs. 50 lakh for product development and go-to-market
- Fund of Funds managed by SIDBI with Rs. 10,000 crore corpus for investment in SEBI-registered AIFs
- Government tender participation without prior experience or turnover requirements
To qualify for Startup India recognition, the entity must be less than 10 years old from the date of incorporation, have annual turnover not exceeding Rs. 100 crore, and be working towards innovation, development, or improvement of products, processes, or services.
6. Mahila Udyam Nidhi Scheme (SIDBI)
SIDBI offers the Mahila Udyam Nidhi Scheme specifically for women entrepreneurs setting up new small-scale industrial units or upgrading technology in existing units.
- Loan amount: Up to Rs. 10 lakh
- Repayment period: Up to 10 years including moratorium of up to 5 years
- Available for: New projects, technology upgradation, and modernization
- Application: Through SIDBI directly or through partner banks and financial institutions
7. Annapurna Scheme
The Annapurna Scheme supports women who want to start food catering and meal services businesses. This scheme is ideal for women running tiffin services, small restaurants, food delivery services, or packaged food businesses.
- Loan amount: Up to Rs. 50,000
- Repayment: 36 monthly installments after initial moratorium
- Assets purchased serve as collateral along with a guarantor
- Ideal for: Women in rural and semi-urban areas with food business skills
Bank-Specific Loan Schemes for Women
In addition to government-backed programmes, several banks offer dedicated loan products for women entrepreneurs with preferential terms, lower interest rates, and reduced processing charges.
| Scheme | Bank | Maximum Loan | Key Benefit |
|---|---|---|---|
| Stree Shakti Package | SBI | Based on business plan | 0.50% interest rate concession for loans above Rs. 5 lakh |
| Cent Kalyani Scheme | Central Bank of India | Rs. 1 crore | No collateral, no processing fees |
| Dena Shakti Scheme | Bank of Baroda (erstwhile Dena Bank) | Rs. 20 lakh | 0.25% interest rate concession |
| Mahila Udyam Nidhi | Punjab National Bank / SIDBI | Rs. 10 lakh | Long repayment tenure with moratorium |
| Orient Mahila Vikas Yojana | Oriental Bank of Commerce | Rs. 25 lakh | Reduced collateral requirements |
| TREAD Scheme | Through NGOs (Ministry of MSME) | 30% of project cost as grant | Non-repayable government grant |
State Government Schemes for Women Entrepreneurs
State governments across India have launched their own schemes to support women entrepreneurs with subsidies, tax incentives, and institutional support.
Tamil Nadu: New Entrepreneur cum Enterprise Development Scheme (NEEDS)
The NEEDS scheme offers a 25% capital subsidy (up to Rs. 30 lakh) and a 3% interest subsidy for 5 years for first-generation women entrepreneurs setting up manufacturing or service units. The maximum project cost eligible is Rs. 5 crore.
Karnataka: Udyogini Scheme
Provides loans up to Rs. 3 lakh with a subsidy of 30% (up to Rs. 10,000) for women from families with annual income up to Rs. 1.5 lakh. The scheme supports businesses in agriculture, tailoring, food processing, and retail.
Telangana: WE Hub
WE Hub is India's first state-led incubator exclusively for women entrepreneurs. It provides mentoring, investor connections, co-working space, skill development, and market access support. Over 1,600 women-led startups have been supported through this platform.
Maharashtra: CMEGP
The Chief Minister's Employment Generation Programme (CMEGP) in Maharashtra offers higher subsidies for women: 35% in rural areas and 25% in urban areas for projects in manufacturing and service sectors.
Rajasthan: Bhamashah Rojgar Srijan Yojana
This scheme provides subsidized loans and interest subsidies to women entrepreneurs, with preference in selection and higher subsidy rates compared to male applicants for manufacturing and service enterprises.
Steps to Access Government Schemes
Here is a practical step-by-step guide for women entrepreneurs to access government financial assistance:
- Register your business: Incorporate a Private Limited Company, register an LLP, or set up a Sole Proprietorship depending on your business needs
- Get Udyam (MSME) registration: Register on the Udyam portal to classify your enterprise as Micro, Small, or Medium and unlock scheme eligibility
- Prepare a detailed business plan: Include market analysis, revenue projections, cost estimates, and operational details. Most schemes require a project report
- Obtain GST registration: If your turnover exceeds Rs. 20 lakh (Rs. 10 lakh for NE states), register for GST
- Open a current bank account: Use your company or LLP registration documents to open a business bank account, which is mandatory for loan disbursement
- Apply to the relevant scheme: Submit online applications through the respective portals (Mudra portal, Stand Up India portal, KVIC portal, or directly at the bank branch)
- Follow up and comply: After loan sanction, maintain proper accounts, file GST returns, and comply with annual compliance requirements to remain eligible for continued support
Government Procurement Reservation for Women MSMEs
One of the most impactful yet underutilized benefits for women entrepreneurs is the 3% procurement reservation under the Public Procurement Policy for MSMEs. The central government mandates that 25% of all procurement by government ministries must come from MSMEs, with 3% specifically reserved for women-owned enterprises.
How to Qualify
- Register on the Government e-Marketplace (GeM) portal as a seller
- Complete Udyam registration and mark the enterprise as women-owned
- Upload product or service catalogues on GeM
- Bid for government tenders through the portal
This reservation gives women-owned MSMEs a significant competitive advantage when bidding for government contracts worth thousands of crores annually. Many women entrepreneurs are unaware of this benefit, leaving substantial business opportunities on the table.
Skill Development and Training Programmes
Beyond financial assistance, the government provides extensive skill development and mentoring programmes for women entrepreneurs:
- Entrepreneurship Development Programmes (EDPs): Conducted by MSME Development Institutes across India, covering business planning, finance management, marketing, and legal compliance
- NITI Aayog WEP (Women Entrepreneurship Platform): Provides mentoring, funding access, compliance guidance, and a community of women entrepreneurs at wep.gov.in
- DAY-NRLM (Deendayal Antyodaya Yojana): Supports rural women through Self-Help Groups (SHGs) with training, revolving funds, and bank linkages
- NSDC Training: National Skill Development Corporation offers subsidized training in 37 sectors for women
- KVIC Training: Khadi and Village Industries Commission provides free training for women in traditional industries
Tips for Maximizing Scheme Benefits
To get the most out of government schemes, women entrepreneurs should follow these practical tips:
- Apply for multiple schemes simultaneously: There is no restriction on applying to different schemes from different agencies, provided eligibility criteria are met
- Maintain proper documentation: Keep all business registration certificates, GST registration, financial statements, and tax returns organized and up to date
- Network with other women entrepreneurs: Platforms like WE Hub, NITI Aayog WEP, and local women entrepreneur associations provide valuable peer learning and referral opportunities
- Attend government exhibitions and trade fairs: Schemes like MDA provide financial assistance for participating in domestic and international trade shows
- Register on GeM portal: Access the 3% government procurement reservation for women-owned MSMEs
- Keep credit history clean: Timely repayment of existing loans improves credit score and eligibility for larger loans under CGTMSE and Stand Up India
- Get professional help: Engage a professional accountant or business advisor to prepare project reports and manage applications
Conclusion
The Indian government has created a robust ecosystem of financial, institutional, and policy support for women entrepreneurs. From collateral-free Mudra loans for micro businesses to crore-plus term loans under Stand Up India, from 35% subsidies under PMEGP to 3% government procurement reservation, the opportunities for women to start, grow, and scale businesses have never been more accessible.
The key to success is taking that first step: registering your business, getting Udyam registration, and systematically applying for the schemes that match your business needs. At IncorpX, we help thousands of women entrepreneurs across India navigate the registration process, apply for government benefits, and build compliant businesses from the ground up.
Frequently Asked Questions
What are the top government schemes for women entrepreneurs in India in 2026?
The top government schemes for women entrepreneurs in India in 2026 include: Mudra Yojana (PMMY) for loans up to Rs. 10 lakh, Stand Up India Scheme for loans between Rs. 10 lakh and Rs. 1 crore, Mahila Udyam Nidhi Scheme by SIDBI, CGTMSE Scheme for collateral-free loans up to Rs. 5 crore, Startup India Scheme for tax exemptions and incubation support, PMEGP for manufacturing and service sector subsidies, Annapurna Scheme for food catering businesses, Stree Shakti Package by SBI, Udyogini Scheme for micro enterprises, and Bharatiya Mahila Bank Business Loan (now merged with SBI).
How can women apply for Mudra Loan in India?
Women can apply for Mudra Loans through any public sector bank, private bank, regional rural bank, small finance bank, micro-finance institution, or NBFC that is a Mudra lending partner. The application process involves: (a) visiting the nearest bank branch or applying online; (b) submitting the loan application form along with identity proof (Aadhaar, PAN), address proof, business plan, and photographs; (c) the bank evaluates the proposal based on the business viability; and (d) loan is sanctioned under one of three categories: Shishu (up to Rs. 50,000), Kishore (Rs. 50,001 to Rs. 5 lakh), or Tarun (Rs. 5,00,001 to Rs. 10 lakh). No collateral is required for Mudra Loans.
What is the Stand Up India Scheme for women?
The Stand Up India Scheme facilitates bank loans between Rs. 10 lakh and Rs. 1 crore to at least one woman borrower per bank branch for setting up a greenfield enterprise in manufacturing, services, trading, or agriculture-allied activities. The loan is available only for new businesses, not for expansion of existing units. Women must hold at least 51% of the shareholding in the enterprise. The loan is repayable over 7 years with a maximum moratorium period of 18 months, and the interest rate is the lowest applicable rate of the bank, not exceeding the base rate plus 3%.
Is there any special interest rate concession for women entrepreneurs?
Yes, several banks and government schemes offer interest rate concessions for women entrepreneurs. Under the Stree Shakti Package by SBI, women borrowers with loans above Rs. 5 lakh receive a 0.50% interest rate concession on the applicable rate. The Cent Kalyani Scheme by Central Bank of India offers loans up to Rs. 1 crore without collateral at reduced interest rates. Additionally, many state governments offer interest subsidies of 3% to 5% on loans taken by women entrepreneurs under their respective state schemes.
What is the Mahila Udyam Nidhi Scheme?
The Mahila Udyam Nidhi Scheme is a special scheme by the Small Industries Development Bank of India (SIDBI) designed to provide equity support and financial assistance to women entrepreneurs for starting new small-scale industries or upgrading existing enterprises. The scheme offers loans up to Rs. 10 lakh for a repayment period of up to 10 years with a moratorium of up to 5 years. The scheme covers setting up new projects, technology upgradation, and modernization of existing units. Women can apply through SIDBI directly or through banks partnered with SIDBI.
Can women get collateral-free loans under government schemes?
Yes, multiple schemes offer collateral-free loans to women entrepreneurs. The CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) provides collateral-free loans up to Rs. 5 crore for MSMEs, with a higher guarantee coverage of up to 85% for women-owned enterprises compared to 75% for others. Under the Mudra Yojana, loans up to Rs. 10 lakh are available without any collateral requirement. Cent Kalyani Scheme also provides collateral-free loans up to Rs. 1 crore for women in various business sectors.
What is CGTMSE and how does it benefit women entrepreneurs?
CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) is a government scheme jointly established by the Ministry of MSME and SIDBI. It provides a credit guarantee to lending institutions for collateral-free loans extended to MSMEs. For women-owned enterprises, the scheme offers a higher guarantee coverage of 85% for loans up to Rs. 5 lakh, compared to 75% for other borrowers. The maximum guarantee coverage extends up to Rs. 5 crore. This scheme makes it significantly easier for women entrepreneurs to access bank credit without pledging personal or business assets as collateral.
Are there any tax benefits for women entrepreneurs in India?
While the Income Tax Act does not provide gender-specific tax exemptions for women business owners, women entrepreneurs can benefit from: (a) Startup India tax holiday under Section 80-IAC, providing a 3-year tax exemption for DPIIT-recognized startups; (b) reduced corporate tax rate of 25% for companies with turnover up to Rs. 400 crore; (c) presumptive taxation under Section 44AD for businesses with turnover up to Rs. 3 crore, reducing compliance burden; (d) MSME benefits including priority sector lending and subsidy schemes; and (e) lower stamp duty rates in several states for properties registered in a woman's name.
What is the PMEGP scheme and how can women apply?
The Prime Minister's Employment Generation Programme (PMEGP) is a government scheme that provides subsidies for setting up new manufacturing or service enterprises. For women entrepreneurs, the subsidy rates are higher: 35% of the project cost in rural areas and 25% in urban areas, compared to 25% and 15% for general category applicants. The maximum project cost is Rs. 50 lakh for manufacturing and Rs. 20 lakh for service sector. Women can apply online through the KVIC (Khadi and Village Industries Commission) portal. The beneficiary contribution is only 5% for women compared to 10% for general category.
What is the Annapurna Scheme for women?
The Annapurna Scheme is a government-backed loan scheme designed specifically for women entrepreneurs in the food and catering business. Under this scheme, women can get loans up to Rs. 50,000 to start or expand food-related businesses such as packed meals, tiffin services, catering units, or food delivery ventures. The loan is to be repaid in 36 monthly installments after an initial moratorium period. A guarantor is required for the loan, and the assets purchased with the loan amount serve as collateral. This scheme is particularly valuable for women in rural and semi-urban areas.
How can women register their business under Startup India?
Women can register their business under Startup India by following these steps: (a) first, register the business as a Private Limited Company, LLP, or Partnership Firm; (b) visit the Startup India portal (startupindia.gov.in) and create an account; (c) fill the online application form with details about the business, innovation, and scalability; (d) upload supporting documents including the certificate of incorporation, a brief about the business, and details of any IP filed; (e) upon verification, the startup receives DPIIT recognition, which enables it to apply for tax exemption under Section 80-IAC, self-certification under labor and environmental laws, and faster patent processing.
What is the Udyogini Scheme?
The Udyogini Scheme is implemented by the Women Development Corporation across several states and provides financial assistance for women in rural and semi-urban areas who want to start micro-enterprises. The scheme targets women from families with annual income up to Rs. 1.5 lakh and offers subsidized loans for various business activities, including agriculture, animal husbandry, handicrafts, retail, tailoring, and food processing. The scheme provides a subsidy of 30% of the loan amount (up to Rs. 10,000) and a maximum loan of Rs. 3 lakh through nationalized banks.
What state-level schemes are available for women entrepreneurs?
Several states offer dedicated schemes for women entrepreneurs: (a) Tamil Nadu has the New Entrepreneur cum Enterprise Development Scheme (NEEDS) offering 25% capital subsidy; (b) Karnataka provides the Udyogini scheme with loans up to Rs. 3 lakh; (c) Kerala offers the Women Industries Programme (WIP) with subsidized loans; (d) Maharashtra has the CMEGP with higher subsidies for women; (e) Rajasthan offers the Bhamashah Rojgar Srijan Yojana with preference for women; (f) Telangana provides WE Hub for women entrepreneurship incubation; and (g) Gujarat offers interest subsidies under the MSME scheme for women-owned units.
Can NRI women avail government schemes for entrepreneurs in India?
NRI women can avail certain government schemes for entrepreneurs in India, subject to specific conditions. They can register a Private Limited Company or LLP in India with appropriate FDI compliance. However, most government subsidies like PMEGP and Mudra are available only to Indian residents. NRI women can benefit from Startup India recognition if their company is DPIIT-registered, and can access funding through angel investors, venture capital, and bank loans for their Indian entity. Some state-level incentives may also apply depending on the investment amount.
What is the Stree Shakti Package by SBI?
The Stree Shakti Package is a special loan scheme by the State Bank of India (SBI) for women who have majority ownership (over 50%) in a business enterprise. Key features include: (a) 0.50% concession on interest rates for loans above Rs. 5 lakh; (b) no processing fees on loans up to Rs. 25 lakh; (c) flexible repayment options tailored to business cash flows; (d) the scheme covers manufacturing, trading, and service sector enterprises; and (e) the loan amount depends on the business plan and projected revenues. Women must have completed the Entrepreneurship Development Programme (EDP) to qualify.
How much subsidy do women get under PMEGP?
Under the PMEGP (Prime Minister's Employment Generation Programme), women from the special category receive higher subsidies compared to general category applicants. The subsidy structure for women (including SC/ST and other special categories) is: 35% of the project cost in rural areas and 25% in urban areas. The beneficiary contribution for women is only 5% of the project cost (compared to 10% for general category). The remaining amount is provided as a bank loan. For example, for a Rs. 50 lakh manufacturing project in a rural area, a woman entrepreneur would receive a subsidy of Rs. 17.5 lakh and need to contribute only Rs. 2.5 lakh.
What documents are required to apply for women entrepreneur schemes?
The common documents required for most government schemes are: (a) identity proof such as Aadhaar card, PAN card, or voter ID; (b) address proof with utility bills, rent agreement, or bank passbook; (c) business registration documents including certificate of incorporation or MSME/Udyam registration certificate; (d) detailed business plan or project report; (e) bank statements for the last 6 to 12 months; (f) passport-size photographs; (g) caste certificate if applying under SC/ST/OBC category; (h) quotations from suppliers for machinery and equipment; and (i) GST registration certificate if applicable.
What is the Trade Related Entrepreneurship Assistance and Development (TREAD) scheme?
The TREAD (Trade Related Entrepreneurship Assistance and Development) scheme by the Ministry of MSME provides government grants of up to 30% of the total project cost to women-focused NGOs for carrying out training and lending activities for women entrepreneurs. The remaining 70% is provided as a loan by lending institutions. The scheme aims to build entrepreneurial capacity among women in non-farm activities through need-based training programmes. TREAD helps women who may not have direct access to the formal banking system by channeling assistance through trusted NGOs and voluntary organizations.
Are there any special schemes for women in rural areas?
Yes, there are several schemes specifically designed for women in rural areas: (a) Deendayal Antyodaya Yojana (DAY-NRLM) supports women's self-help groups (SHGs) with revolving funds, bank linkages, and skill development; (b) Mahila Kisan Sashaktikaran Pariyojana (MKSP) provides training and resources for women farmers; (c) PMEGP offers 35% subsidy for women in rural areas; (d) NABARD schemes provide refinance to banks for women-led rural enterprises; (e) National Livestock Mission supports women in animal husbandry; and (f) Rashtriya Mahila Kosh (RMK) provides micro-credit to poor women through intermediary organizations.
What is the Bharatiya Mahila Bank loan scheme?
The Bharatiya Mahila Bank (BMB) was India's first all-women public sector bank, established in 2013 specifically to cater to the banking needs of women. In March 2017, BMB was merged with the State Bank of India (SBI). However, the loan products originally offered by BMB continue under SBI's women-focused schemes. These include: business loans for women entrepreneurs, education loans for women, housing loans at preferential rates, and the Shringaar and Annapurna schemes for beauty and food businesses. Women can access these products at any SBI branch.
Can women get funding under the Venture Capital Fund for Scheduled Castes?
Yes, women from Scheduled Caste (SC) communities can access funding under the Venture Capital Fund for Scheduled Castes (VCF-SC) managed by the IFCI (Industrial Finance Corporation of India) under the Ministry of Social Justice and Empowerment. The scheme provides venture capital assistance up to Rs. 15 crore per unit for SC entrepreneurs to start or scale businesses. Women SC entrepreneurs receive priority consideration. The fund supports projects in manufacturing, services, and agribusiness sectors and has a separate allocation for women-led enterprises.
What is the WE Hub initiative in Telangana?
The WE Hub (Women Entrepreneurs Hub) is a government-backed incubation platform established by the Government of Telangana to support women entrepreneurs across India. It is the first state-led incubator exclusively for women. WE Hub provides: (a) incubation and mentorship support; (b) access to investors and funding networks; (c) co-working spaces; (d) skill development programmes; (e) market access and networking opportunities; and (f) government scheme facilitation. Any woman entrepreneur from any state can apply. WE Hub has supported over 1,600 women-led startups across sectors including technology, healthcare, food, and social enterprise.
How can women access export-related schemes and benefits?
Women entrepreneurs engaged in export businesses can access several benefits: (a) IEC (Import Export Code) registration with no gender-based restrictions; (b) Niryat Bandhu Scheme by DGFT provides mentoring and handholding for first-generation exporters; (c) Market Development Assistance (MDA) scheme offers financial assistance for participation in trade fairs and exhibitions; (d) APEDA provides subsidies for agricultural exports; (e) PMEGP offers higher subsidies for women in manufacturing for export; and (f) the ECGC (Export Credit Guarantee Corporation) provides insurance for export receivables at standard rates.
What is the Cent Kalyani Scheme?
The Cent Kalyani Scheme by the Central Bank of India provides loans to women entrepreneurs for starting new ventures or expanding existing businesses. Key features include: (a) loan amount up to Rs. 1 crore; (b) no collateral or third-party guarantee required; (c) no processing fees; (d) the scheme covers manufacturing, agriculture, retail, and service sector enterprises; (e) the loan can be used for working capital or capital expenditure; and (f) the repayment period is up to 7 years with a moratorium of up to 6 months. Women aged between 18 and 55 years are eligible to apply.
Are there any government grants (non-repayable) for women entrepreneurs?
Yes, certain government schemes provide non-repayable grants for women entrepreneurs: (a) TREAD scheme offers a grant of up to 30% of the project cost for women through NGOs; (b) Startup India Seed Fund Scheme provides grants up to Rs. 20 lakh for proof of concept and Rs. 50 lakh for scaling; (c) BIRAC (Biotechnology Industry Research Assistance Council) offers grants for women-led biotech startups; (d) ATAL Innovation Mission provides grants for innovative startups; (e) NITI Aayog Women Transforming India Awards offers cash prizes; and (f) some state schemes like Tamil Nadu NEEDS provide capital subsidies that do not need to be repaid.
What is the eligibility criteria for women to apply for PMMY (Mudra) loans?
The eligibility criteria for women to apply for PMMY (Mudra) loans are: (a) must be an Indian citizen; (b) must have a viable business plan for a non-farm income-generating activity; (c) the business should fall in the manufacturing, trading, or service sector; (d) the enterprise should classify as a micro or small enterprise; (e) the applicant should not be a defaulter with any bank or financial institution; and (f) for the Shishu category (up to Rs. 50,000), minimal documentation is required. There is no minimum educational qualification, and both new and existing businesses are eligible.
Can women entrepreneurs register under MSME/Udyam for additional benefits?
Yes, women entrepreneurs should register under Udyam (MSME) registration to access multiple benefits: (a) priority sector lending from banks at preferential rates; (b) collateral-free loans under CGTMSE up to Rs. 5 crore; (c) government purchase preference where 25% of procurement is reserved for MSMEs, with 3% sub-target for women-owned MSMEs; (d) subsidy on patent and trademark registration; (e) reimbursement of ISO certification expenses; (f) interest subsidy on term loans; and (g) protection against delayed payments from buyers within 45 days under the MSMED Act.
What support does NABARD provide for women entrepreneurs?
NABARD (National Bank for Agriculture and Rural Development) supports women entrepreneurs through: (a) Women Self Help Group (SHG) Bank Linkage Programme providing micro-credit access; (b) scheme for women in agriculture and allied activities with refinance to banks; (c) Rural Innovation Fund (RIF) for innovative projects by women; (d) Micro Enterprise Development Programme (MEDP) for skill training; (e) NABARD Financial Literacy Programmes for women SHGs; (f) Agri-Business Incubation Centres with special windows for women; and (g) refinance at concessional rates to banks lending to women-owned rural enterprises.
How does the government 3% procurement reservation for women MSMEs work?
Under the Public Procurement Policy for MSMEs, the government mandates that 25% of total procurement by central ministries and departments must be from MSMEs, with a 3% sub-target reserved for women-owned MSMEs. To qualify, the enterprise must be: (a) registered under Udyam; (b) owned by a woman with more than 50% shareholding; and (c) registered on the Government e-Marketplace (GeM) portal. This reservation gives women-owned businesses a competitive advantage in government tenders and contracts. The policy applies to goods, services, and works procured by all central government entities.
What training and skill development programmes are available for women entrepreneurs?
Several government training programmes are available for women: (a) Entrepreneurship Development Programme (EDP) by MSME Development Institutes; (b) Skill India Mission with special modules for women; (c) NITI Aayog Women Entrepreneurship Platform (WEP) offering mentoring, funding connection, and networking; (d) NSDC (National Skill Development Corporation) training in various trades; (e) Ministry of Rural Development (MoRD) skill training under DAY-NRLM; (f) KVIC training for women in traditional industries; and (g) state-level EDP programmes run by District Industries Centres (DICs). Most of these programmes are either free or heavily subsidized for women.
Can women entrepreneurs get stamp duty exemptions?
Several Indian states offer stamp duty concessions or exemptions for women: (a) Delhi charges 4% stamp duty for women compared to 6% for men on property registration; (b) Rajasthan offers 1% lower stamp duty for women; (c) Haryana provides stamp duty exemptions for women buying property; (d) Punjab offers reduced stamp duty for female property buyers; and (e) some states provide stamp duty exemptions on loan agreements and mortgage deeds for women-owned MSMEs under special state industrial policies. These benefits apply to business premises and commercial properties purchased by women entrepreneurs.
What is the Online Platform for Women Entrepreneurship (WEP)?
The Women Entrepreneurship Platform (WEP) was launched by NITI Aayog to create an ecosystem for women entrepreneurs in India. The platform provides: (a) mentoring and guidance from experienced entrepreneurs; (b) funding connections with investors, banks, and government schemes; (c) incubation support through partner incubators; (d) marketing and promotion opportunities; (e) networking events and webinars; (f) compliance and legal guidance; and (g) a community of women entrepreneurs for peer support. Women can register on the WEP portal at wep.gov.in for free.
What are the financing options for women-owned startups in India?
Women-owned startups in India have multiple financing options: (a) Government Schemes: PMMY, Stand Up India, PMEGP, and CGTMSE; (b) Angel Investment: Networks like Indian Angel Network and SheCapital; (c) Venture Capital: Funds focused on women-led startups like She Capital, Saha Fund, and AWE Funds; (d) Bank Loans: SBI Stree Shakti, Cent Kalyani, and SIDBI loans; (e) Crowdfunding: Platforms like Ketto and Milaap; (f) Startup India Seed Fund: Up to Rs. 50 lakh for scaling; (g) SIDBI Fund of Funds: Indirect support through registered AIFs; and (h) Corporate accelerators by Google, Microsoft, and Amazon for women entrepreneurs.
How can women entrepreneurs register on the GeM portal for government contracts?
Women entrepreneurs can register on the Government e-Marketplace (GeM) portal by following these steps: (a) visit gem.gov.in and click on 'Sign Up as Seller'; (b) provide Aadhaar, PAN, GSTIN, and bank account details; (c) complete the Udyam registration and mark the enterprise as women-owned; (d) upload product or service catalogues; (e) set pricing as per GeM guidelines; and (f) bid for government tenders. Women-owned MSMEs get the 3% procurement reservation benefit. The portal also has a dedicated section for women sellers and provides training webinars for first-time users.
Are there any schemes for women in the handloom and handicraft sector?
Yes, several schemes support women in the handloom and handicraft sector: (a) National Handloom Development Programme (NHDP) provides cluster development and credit facilities; (b) Ambedkar Hastshilp Vikas Yojana offers up to Rs. 1.5 lakh per artisan for tool kits and training; (c) Marketing and Export Promotion Scheme supports women artisans in domestic and international exhibitions; (d) Design and Technology Upgradation Scheme provides resources for product innovation; (e) Mudra Yojana offers loans for handloom and handicraft units; and (f) GI (Geographical Indication) registration support helps protect traditional crafts.
What is the role of SIDBI in supporting women entrepreneurs?
SIDBI (Small Industries Development Bank of India) has been instrumental in supporting women entrepreneurs through: (a) Mahila Udyam Nidhi Scheme for loans up to Rs. 10 lakh; (b) SIDBI Make in India Soft Loan Fund (SMILE) for MSMEs including women-owned businesses; (c) SIDBI Cluster Development Fund for women-dominated clusters; (d) CGTMSE partnership for collateral-free lending; (e) SIDBI Venture Capital Fund targeting women-led startups; (f) refinance schemes to banks for on-lending to women entrepreneurs; and (g) digital lending platforms for faster credit delivery. SIDBI also conducts entrepreneurship awareness programmes specifically for women.
How can women apply for the Prime Minister's Rozgar Yojana?
The Prime Minister's Rozgar Yojana (PMRY) provides subsidized loans to unemployed youth, with preference for women applicants. To apply: (a) the applicant must be between 18 and 35 years of age (relaxed to 45 for women in some states); (b) family income must not exceed Rs. 40,000 per month; (c) must have passed at least 8th standard; (d) must have completed EDP training from a registered institution; (e) must not be a defaulter with any bank; and (f) the project cost should not exceed Rs. 5 lakh for service/business sector and Rs. 10 lakh for manufacturing. The government provides a 15% subsidy on the project cost.
