India is experiencing a dynamic revolution as women are breaking barriers more and more to enter the world of entrepreneurship. Government schemes promoting women’s entrepreneurship emphasize starting their journey, even if it is small, and later growing into major economic forces. Financial help, along with skills and knowledge, is imparted to prepare a part of the working population with a skillset.
Whether you are starting small or growing big, having knowledge of these government schemes can empower you to take a leap forward with confidence. In this article, we break down the top 5 government schemes for women entrepreneurs that are turning dreams into ventures and ideas into successful businesses across the country.
1. Stand-Up India Scheme
Initiated by the Government of India in April 2016, the Stand-Up India Scheme targets bank loan access between ₹10 lakh and ₹1 crore by women and SC/ST entrepreneurs to establish greenfield units.
Key Features:
- Aimed at females over 18 years old.
- New business loans for manufacturing, trading, or services businesses.
- The project is financed by a composite loan (term loan and working capital included) up to the full project cost within the range of ₹10 lakh to ₹1 crore.
- The loan must be repaid within a maximum term of 7 years.
Example: Miss. A, who was from a Tier-2 city in Maharashtra, utilized the Stand-Up India scheme to start her green packaging company. She received ₹30 lakhs in the form of capital and now has more than 25 employees.
2. Annapurna Scheme
A government-backed loan program called the Annapurna Scheme was created to assist female entrepreneurs running small catering and food businesses. This program gives women the initial capital they need to start or grow their businesses, whether it be a home-based tiffin service, snack stall, or catering business.
Key Features
- Up to ₹50,000 in loans are available to qualified female business owners.
- The money can be used for working capital, raw materials, or kitchen equipment.
- A three-year repayment period with a one-month moratorium.
- Depending on the bank’s regulations, a guarantor or little collateral might be needed.
- It is offered by participating public sector banks such as the State Bank of India, Punjab National Bank, and Bank of Baroda, and is not officially under the Ministry of Women and Child Development.
Benefits:
- Promotes women’s involvement in the food industry, particularly in rural and semi-urban regions.
- Provides first-time business owners with low financial entry barriers.
- Encourages homemakers to generate their own income and become financially independent.
- Helps local food service ecosystems and the creation of jobs.
3. TREAD Scheme (Trade Related Entrepreneurship Assistance and Development)
The TREAD Scheme is a Ministry of MSME scheme with a view to encouraging self-employment and income generation among women.
How it Works:
- The government offers a grant which is up to 30% of the project cost.
- The remaining 70% is funded by participating banks.
Advantages:
- Target poor and rural women.
- Focus on skill-building and money sense.
Example: An NGO from Odisha provided training to 50 tribal women under TREAD to establish small units of textile manufacturing. With financial support from the government, partly, and bank loans, the women are now operating successful microenterprises.
4. Mudra Yojana under Pradhan Mantri MUDRA Scheme
Started in 2015, MUDRA Yojana provides microfinance by banks and NBFCs for small business activities.
Three Loan Types:
- Shishu – ₹50,000 or below
- Kishor – ₹50,001 – ₹5 lakhs
- Tarun – ₹5 lakhs to ₹10 lakhs
Advantages:
- No collateral necessary.
- Encourages women to pursue careers like tailoring, handicrafts, dairy farming, catering, etc. Female borrowers’ special interest rate concessions.
| Loan Type | Amount Range | Suitable For |
| Shishu | Up to ₹50,000 | New small-scale startups |
| Kishor | ₹50,001 to ₹5 lakh | Growing micro-enterprises |
| Tarun | ₹5 lakh to ₹10 lakh | Well-established small units |
5. Bharatiya Mahila Bank Business Loan
This program, which has since been merged with the State Bank of India (SBI), keeps offering women unique financial products that are suited to their business requirements.
Key Features:
- Loans up to ₹20 crore are sanctioned for manufacturing businesses.
- Concessions on interest rates of up to 0.25%.
- Loans under the CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) up to ₹1 crore are available without collateral.
Covered Sectors:
- Shops
- Learning
- Producing
- Food and Drink
Example: Using Bharatiya Mahila Bank Business Loan, Meera, a Bengaluru bakery owner, grew her business into a chain of cafes. Her loan was approved with no collateral and at a lower interest rate.
Bottomline
The conclusion can be drawn that the government is supporting women’s empowerment in the form of these schemes. They are given loans in the form of financial support without collateral, and also the knowledge to implement the idea into action. This will help the economy as a whole, along with helping women to identify what works best for them.
From the ease of loan access provided by Stand-Up India to MUDRA’s collateral-free micro-financing, each scheme is a key to empowering women to establish, grow, and sustain their businesses. With the right support, your entrepreneurial tale can shape the future.