Top Business Loan for Ladies from Government in India

In the financial year 2024–2025, ladies borrowers in India showed significant growth in loan uptake. The total outstanding loan portfolio of ladies borrowers reached around ₹36.5 lakh crore by December 2024, reflecting an 18% increase from ₹30.9 lakh crore in December 2023. The number of active women borrowers also rose to approximately 8.3 crore, up from 7.5 crore in the previous year. In the microfinance sector, women played a major role, holding a portfolio worth about ₹4.43 lakh crore, with an average loan size of nearly ₹37,445. This data highlights the rising participation of ladies in the country’s credit and financial ecosystem.

This guide will walk you through the top business loan schemes for ladies from the government, plus key tips, recent data, and answers to the most common questions.

1. Pradhan Mantri Mudra Yojana (PMMY)

This is India’s most popular government business loan for ladies starting micro or small businesses. Loans range from:

• Shishu (up to ₹50,000)
• Kishor (₹50,001 to ₹5 lakh)
• Tarun (₹5 lakh to ₹10 lakh)

No collateral is required, and banks often offer interest concessions for lady borrowers. This is ideal for small setups like tailoring, food stalls, beauty parlours, tuition classes, etc.

As of FY2024, 63.63% of PMMY accounts were held by ladies, making it the most accessible scheme for first-time entrepreneurs.

2. Stand-Up India Scheme

This scheme offers loans from ₹10 lakh to ₹1 crore to ladies or SC/ST entrepreneurs starting a brand-new (greenfield) venture in manufacturing(check scheme), services, or trading.

Key features:

• One lady borrower per bank branch is mandatory.
• Loans include both term and working capital.
• No collateral needed in most cases government credit guarantee is provided.
• 7-year repayment tenure with moratorium available.

By Jan 2025, over 1.94 lakh lady entrepreneurs had benefited from this scheme.

3. Annapurna Yojana

Targeted at ladies running small food businesses like catering, snack counters, or home-cooked meals. The loan amount is usually up to ₹50,000, with a short repayment period (3 years) and minimal security.

A great fit for those turning their kitchen skills into income.

4. Mahila Udyam Nidhi Scheme (by SIDBI)

A special business loan for ladies from government to modernise or expand existing ventures. Loan amount is up to ₹10 lakh, with up to 10 years repayment tenure.

Best for scaling or upgrading a small-scale manufacturing or service business. No collateral needed in many cases.

5. TREAD Scheme (by Ministry of MSME)

This scheme supports underprivileged and rural ladies by offering 30% government grant + 70% bank loan. Training, financial education, and support from NGOs are also included.

Ideal for self-help groups or ladies looking to start from scratch with handholding.

Why These Schemes Matter?

• Collateral-free options: Crucial for ladies loan without property to pledge.
• Flexible loan sizes: From ₹50,000 to ₹1 crore.
• Government-backed: Increases bank confidence in lending.
• Training linked: Some schemes also offer business skill training.

1. SBI Asmita – Powering Women-Led Enterprises

Offered by India’s largest public sector bank, SBI Asmita provides financial assistance for both new and existing women-led businesses. Loan amounts range from ₹10 lakh to ₹5 crore, covering working capital and term loans. Entrepreneurs benefit from wide branch support and flexible collateral norms ideal for medium-scale enterprises aiming to expand operations.

2. Bhartiya Mahila Bank Business Loan (Now Integrated)

Originally India’s first women-focused bank, Bhartiya Mahila Bank merged with larger public banks but its legacy products continue under various names (like Oxyzo partnerships). These loans support manufacturing, trading, and service activities with limits up to ₹5 crore. They remain a great option for women wanting a gender-inclusive loan ecosystem.

3. Udyogini Scheme – Encouraging Rural and Small Entrepreneurs

Implemented through State Women Development Corporations (WDCs) and partner banks, Udyogini offers financial help up to ₹3 lakh. It’s particularly beneficial for women from weaker sections who want to start micro or cottage enterprises. Many states provide partial interest subsidies or training support, making it a low-risk entry option.

4. HDFC Bank Business Loan for Women Entrepreneurs

Private lenders like HDFC Bank have simplified access through paperless approvals and collateral-free credit up to ₹50 lakh. The process is quick, and repayment tenure flexible, suiting women who need funds for business expansion or digital upgrades. The scheme’s speed and ease make it a favorite among urban professionals and freelancers.

5. Cent Kalyani Scheme – Trusted Public Sector Option

The Central Bank of India’s Cent Kalyani Scheme offers loans up to ₹1 crore for manufacturing, services, or retail businesses. Designed exclusively for women entrepreneurs, it features competitive interest rates, no processing fee, and zero collateral in many cases. It’s ideal for those seeking reliable government-backed support.

Tips to Apply for a Government Business Loan for Ladies

• Pick the right scheme: Based on business type and loan amount needed.
• Prepare a business plan: Simple 1-page idea, cost, revenue, and need for loan.
• Visit your bank branch: Speak to the MSME or women entrepreneur desk.
• Ask for the concession: Mention you’re applying as a lady entrepreneur.
• Check state schemes too: Some states offer additional subsidies or 0% loans for ladies.

Most Common Businesses Run by Ladies Entrepreneurs in India

In India, most ladies entrepreneurs run small and medium-sized businesses in sectors like retail, beauty, tailoring, and food services. Many manage general stores, beauty salons, or tailoring shops, which together account for nearly one-third of lady-led digital businesses. In rural areas, a large portion of women entrepreneurs are engaged in agriculture and allied sectors, including dairy farming, food processing, and making products like pickles and papads. Additionally, many women operate home-based or service-oriented ventures such as tutoring, catering, handicrafts, or freelance work. These businesses are preferred because they require low investment, offer flexibility, and can be managed alongside household responsibilities.

Common FAQs

Q1: Can any lady apply for a business loan from the government?
Yes, if you're over 18 and planning a business (new or existing), you can apply under these schemes. Some may need you to undergo training or have a basic business plan.

Q2: Is collateral required?
No, most of these schemes like PMMY and Stand-Up India offer collateral-free loans using government credit guarantees.

Q3: Are there special interest rates for ladies?
Yes. Many banks offer a 0.25% to 0.5% interest rate concession for lady entrepreneurs.

Q4: Which is the best loan for small-scale businesses?
If you're starting small (under ₹10 lakh), PMMY or Mahila Udyam Nidhi work best. For larger startups, Stand-Up India fits well.

Q5: Can I get support beyond loans?
Yes! Many government and NGO programs offer training, mentoring, and market access to lady entrepreneurs.

Our Words

If you're a lady with a business idea or want to grow your existing small business, these government loan schemes are designed for you. At StartupFlora, we help ladies like you with business plan creation, scheme selection, document prep, and loan application support. Let’s make your entrepreneurial journey smoother contact us today and let’s get started!