Top Business Loan for Ladies from Government in India

Government Business Loan for Ladies from Government in India (2025)

More Indian ladies are turning into entrepreneurs every year starting small ventures in fashion, food, services, retail, and beyond. But access to funding remains a big hurdle, especially when there's no collateral or strong financial background. That’s where government schemes step in. In 2025, there are multiple government-backed loan programs designed especially for ladies to start or expand their business with less risk and more support.

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.

Top Business Loan Schemes for Ladies from Government in 2025

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.

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.

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!