India’s startup and MSME ecosystem is booming—and at the forefront of this revolution are women entrepreneurs. From small boutiques to tech-driven startups and home-based enterprises, Indian women are breaking barriers. However, access to capital remains one of the biggest challenges.
To bridge this gap, various government schemes, banks, NBFCs, and fintech lenders have launched business loan options specifically for women.
In this comprehensive guide, we’ll explore the top business loan options for women entrepreneurs in India, their eligibility, benefits, interest rates, and how to apply.
💡 Why Special Business Loans for Women?
India has more than 15 million women-led businesses, yet only 27% of them access formal financial credit (per a SIDBI report). Recognizing the importance of women-led economic growth, financial institutions have introduced dedicated loan schemes with relaxed norms, lower interest rates, and collateral-free lending.
🏆 Top Business Loan Schemes for Women Entrepreneurs in India (2025)
1. Mudra Loan under PMMY (Pradhan Mantri Mudra Yojana)
The Mudra Loan is a government-backed scheme available through banks, NBFCs, and MFIs.
- Loan Amount: Up to ₹10 lakh
- Categories:
- Shishu: Up to ₹50,000
- Kishore: ₹50,001 to ₹5 lakh
- Tarun: ₹5 lakh to ₹10 lakh
- Interest Rate: 8% to 12% (varies by lender)
- Collateral: Not required
- Repayment: Up to 5 years
- Ideal for: Startups, beauty parlors, home businesses, tailoring, etc.
✅ Special provisions and preference are given to women entrepreneurs.
2. Annapurna Scheme (State Bank of India & Others)
For women running food-related businesses like tiffin services, bakeries, food processing units, etc.
- Loan Amount: Up to ₹50,000
- Interest Rate: ~11% to 13%
- Collateral: May be required
- Repayment: 36 months
- Processing Fee: Nil to minimal
- Bank Support: SBI, Bank of Baroda, etc.
3. Bhartiya Mahila Bank Business Loan (Now Merged with SBI)
Even after its merger, SBI continues offering customised business loan products for women.
- Loan Amount: ₹20,000 to ₹20 lakh
- Interest Rate: 1% concession for women borrowers
- Loan Tenure: Up to 7 years
- Collateral: May not be required for loans up to ₹1 crore (under CGTMSE)
4. Stree Shakti Package (State Bank of India)
A special scheme by SBI to empower women holding 51% or more ownership in business.
- Loan Amount: Up to ₹50 lakh
- Interest Rate: 0.5% rebate for loans above ₹2 lakh
- Collateral: As per bank norms
- Eligibility: Women with business registered under MSME and entrepreneurship development programs
5. Udyogini Scheme (Punjab & Sind Bank, Karnataka State Women’s Development Corp, etc.)
Promoted by several state and public sector institutions to encourage women entrepreneurship in rural and semi-urban areas.
- Loan Amount: Up to ₹3 lakh
- Interest Rate: 5% to 8% (varies)
- Eligibility:
- Age: 18–55 years
- Family income less than ₹1.5 lakh per annum (varies by state)
- Collateral: Not needed in most cases
6. Cent Kalyani Scheme (Central Bank of India)
Targeted at self-employed women, artisans, and MSMEs run by women.
- Loan Amount: Up to ₹100 lakh
- Interest Rate: Concessional (subject to change)
- Collateral: Not required
- Usage: Working capital, equipment purchase, expansion
7. Mahila Udyam Nidhi Scheme (SIDBI)
An initiative by SIDBI (Small Industries Development Bank of India) to support women-led SMEs.
- Loan Amount: Up to ₹10 lakh
- Interest Rate: Depends on project and profile
- Repayment Period: Up to 10 years
- Ideal For: Manufacturing and service enterprises
📝 Documents Required
While requirements vary by lender, the commonly needed documents include:
- Aadhaar Card, PAN Card
- Proof of business (GST certificate, Udyam registration)
- Bank statements (last 6–12 months)
- Business plan or project report (for larger loans)
- Income proof or ITR (if applicable)
- Passport-sized photos
📲 How to Apply Online
Most lenders now allow digital applications for women-centric business loans. Here’s the step-by-step process:
- Visit lender website or use an aggregator portal like BankBazaar, LendingKart, etc.
- Choose loan type – Business Loan for Women
- Fill basic details – Name, PAN, Aadhaar, income, business info
- Upload documents
- Await verification & approval
- Get funds disbursed in 3–7 working days
💡 Tips to Get Approved Faster
- Maintain a good bank balance and repayment history
- Register your business on Udyam portal
- Use a co-applicant (husband/partner) if needed for larger loans
- Prepare a simple business plan to present your vision
- Check your CIBIL Score (if required)
🎯 Real-Life Example
Neha Agarwal, a 29-year-old homemaker from Jaipur, started a handmade soap business. She applied for a ₹1.5 lakh loan under the Mudra Yojana (Shishu category) through Punjab National Bank. Within 5 days, she got the amount credited and used it for raw materials and packaging. Her sales grew 3x in 6 months.
📊 At a Glance: Business Loans for Women – Comparison Table
| Scheme Name | Loan Amount | Interest Rate | Collateral | Special Feature |
|---|---|---|---|---|
| Mudra Yojana | Up to ₹10 lakh | 8–12% | No | 3-tier categories, MSME-focused |
| Stree Shakti (SBI) | Up to ₹50 lakh | Concession 0.5% | Maybe | 51% ownership required |
| Cent Kalyani | Up to ₹1 crore | Preferential | No | Working capital + fixed asset funding |
| Udyogini | Up to ₹3 lakh | 5–8% | No | Targeted at rural and low-income women |
| Mahila Udyam Nidhi | Up to ₹10 lakh | Varies | Maybe | SIDBI-funded for small businesses |
✅ Final Thoughts
Women entrepreneurs in India today are not just running businesses—they’re transforming families, societies, and economies. However, lack of access to capital often holds them back.
With these dedicated business loan options, supported by government and financial institutions, women can now scale their ventures confidently.
Whether you’re just starting out or looking to grow, there’s a business loan tailored for your needs.
