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Women’s Day: Government loan, personal loan & other schemes for women entrepreneurs

Key Takeaways

Government initiatives like MUDRA, Stand-Up India, PMEGP, and TREAD offer financial support to help women start or expand businesses in India.
Many schemes provide subsidies, credit guarantees, and collateral-free loans, making business funding more accessible for women entrepreneurs.
Despite growing opportunities, limited access to finance, gender bias, and lack of mentorship remain key challenges for women entrepreneurs.
Along with government schemes, personal loans for women can provide quick, flexible funding to turn business ideas into reality.

05 Mar 2026 by Team FinFIRST

Government loan schemes for women entrepreneurs

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Imagine joining a network of more than 8 million women-run businesses in India, each one a success story in a vast and growing marketplace. According to the 6th economic census released by the Indian Ministry of Statistics and Program Implementation, out of the country’s 58.5 million establishments, women are leading the way in creating new opportunities, not just for themselves, but for their communities.

These numbers are expected to grow further in the new era unfolding in India. The government further supports this vision by providing several financing schemes. Explained below are such schemes.

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Government schemes for women entrepreneurs

As an aspiring woman entrepreneur, the following schemes may be worth looking into:

1. Pradhan Mantri MUDRA Yojana (PMMY)

The Pradhan Mantri MUDRA Yojana is an initiative by the Micro Units Development and Refinance Agency (MUDRA). The scheme offers loans to micro and small businesses across the trading, manufacturing, service, and agriculture sectors.:

• Benefit: MUDRA offers loans up to ₹20 lakhs, subject to eligibility and requirements. Loan options are segmented into four categories:

• Shishu: Loans up to ₹50,000

• Kishore: Loans from ₹50,000 to ₹5 lakhs

• Tarun: Loans from ₹5 lakhs to ₹15 lakhs

• Tarun Plus: Loans up to ₹20 lakhs (if you’ve successfully repaid previous loans under the ‘Tarun’ category.

• Eligibility: Individuals, proprietary concerns, partnership firms, private limited companies, and other legal entities can apply.

2. Stand-Up India Scheme

The Indian Government launched the Stand-Up India scheme to extend financing to Scheduled Castes (SC), Scheduled Tribes (ST), and women entrepreneurs.

• Eligibility: It should be a greenfield enterprise in the making, engaged in manufacturing, services, agri-allied activities, or trading. At least one SC, ST, or woman entrepreneur should be part of the company's leadership.

• Benefit: The scheme offers loans ranging from ₹15 lakhs to ₹1 crore. Besides primary security, the loan can be secured by collateral or a guarantee of the Credit Guarantee Fund Scheme for Stand-Up India (CGFSIL) as decided by the banks.

3. Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE)

Under CGTMSE, micro and small enterprises can benefit from credit guarantee offered by the government.

• Benefit: Micro and small enterprises that cannot provide collateral or a third-party guarantee, applying for term loans and working capital loans of up to ₹10 crore, can benefit from a credit guarantee. While the guarantee cover is typically 75% of the sanctioned loan amount, women entrepreneurs can benefit from 90% credit guarantee.

• Eligibility: New and existing Micro and Small Enterprises engaged in manufacturing or service activity, excluding Agriculture, Self Help Groups (SHGs) and Joint Liability Groups (JLGs).

4. Mahila Samriddhi Yojana (MSY)

MSY is designed to benefit women entrepreneurs from backward backgrounds.

• Benefit: It is a micro-finance scheme that provides financial assistance of up to ₹1.40 lakhs to assist women from minority groups to establish their own businesses or careers.

• Eligibility: Applicant must be between 18-55 years of age. The scheme applies to women from low-income families with family income less that ₹3 lakhs per annum. Women belonging to SC/ST/OBC categories can also apply.

5. Trade Related Entrepreneurship Assistance and Development (TREAD)

TREAD enables women entrepreneurship through a mix of trade-related training and information and counselling extension activities.

• Benefit: The scheme provides a 30% government subsidy on the total cost of the approved business project. Banks finance the remaining cost, with NGOs facilitating the business loan process. Additionally, select beneficiaries receive grant of up to ₹1 lakh to support training initiatives. State government-sponsored entities can receive up to ₹5 lakhs in funding for developing specialised training modules for women entrepreneurs.

• Eligibility: Women entrepreneurs can apply through NGOs that have been a legal entity for at least three years.

6. Prime Minister’s Employment Generation Programme (PMEGP)

PMEGP is a credit-linked subsidy programme that promotes self-employment and entrepreneurship among women in rural and urban areas.

• Benefit: Under this scheme, women are given a higher subsidy (25% instead of the standard 15%) for setting up new micro-enterprises.

• Eligibility: Women above 18 years of age can apply. Assistance is available only to new projects.

Challenges faced by women entrepreneurs

A literary review lists the multitude of challenges women entrepreneurs face in the 21st century:

• Limited access to financing

The biggest challenge for women entrepreneurs has been access to financing, which often prevents their business plans from getting off the ground.

IDFC FIRST Bank offers personal loans through FIRSTmoney to help women start or expand their businesses. You can get access to funds up to ₹15 lakh, at competitive rates starting from 9.99% p.a.

• Gender bias

Gender bias continues to exist, making it difficult for women to advance their businesses. Challenges include questioning self-worth, discrimination from bankers, lack of decision-making power and less support, to name a few.

• Lack of mentorship and networking

Earlier, mentorship and networking were limited or unavailable. To address this gap, the Indian government has launched the Women Entrepreneurship Platform (WEP). It aims to create a conducive environment for women entrepreneurs.

Personal loans for women entrepreneurs

As woman entrepreneur aspiring to start your business or expand your existing venture, IDFC FIRST Bank has got you covered. With the FIRSTmoneypersonal loan for women, you can borrow up to ₹15 lakhs in a 100% digital manner. The entire process is seamless, and you can get funds in as little as 10 minutes. It doesn’t require you to upload any documents. All you need is your PAN and Aadhaar number for the application, and show your original PAN card during video KYC. Check your eligibility for a personal loan here.

Wrapping it up

Indian entrepreneurship is going global, with Indian women leading the charge. If you are an Indian woman with a business idea, a full-fledged set-up plan, or a dream to expand, the government and the Indian banking system are here to help you realise it into reality.

All you need to do is knock on these doors, seize the opportunity, and make the most of it.

Frequently Asked Questions

What is the latest government scheme for women?

Pradhan Mantri MUDRA Yojana (PMMY) is one of the latest Government Schemes for women entrepreneurs offering loans of up to ₹20 lakhs.

How can female entrepreneurs get a loan?

Visit the website of the scheme you would like to apply for a loan. If you are looking for a personal loan for women, visit IDFC FIRST Bank’s website or app, and apply for a FIRSTmoney personal loan. The application is 100% digital and doesn’t require any paperwork. Just apply using your Pan and Aadhaar number and show your original PAN card during video KYC.

What is the eligibility of the government scheme for women?

The eligibility of each scheme differs. Check their specific website for complete and accurate details.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.