The modern business world thrives on equal participation, and women are playing a vital role in shaping its future. Recognizing the potential of entrepreneurship in empowering women from diverse social and economic backgrounds, the Indian government has introduced several initiatives to support their growth. These government schemes for women are not only designed to provide financial aid but also to encourage innovation, leadership, and independence. For aspiring women entrepreneurs, especially those looking to establish themselves in the MSME sector, understanding these schemes can be the first step toward success. From providing easy credit facilities to offering training, mentorship, and subsidies, these programs aim to remove barriers that women face in business.
In this article, we highlight ten outstanding government schemes for women entrepreneurs in India and explore how they are driving gender equality while empowering women to make their mark in the competitive MSME landscape
Top Govt Schemes Empowering Women in India
Women entrepreneurs from diverse social and economic backgrounds are increasingly driving the MSME sector in India. Various initiatives and government schemes for women are creating opportunities, offering financial support, training, mentorship, and subsidies. These efforts make it easier for women to step into the business world with confidence.
By reducing barriers and encouraging participation, these programs are transforming the landscape of entrepreneurship in India. For women eager to start their journey in the MSME sector, understanding and utilizing these schemes can be highly beneficial. Let’s explore the top government schemes for women entrepreneurs that empower them to build sustainable and successful businesses.
1. Annapurna Yojana: Many women possess exceptional culinary skills and can turn their talent into profitable catering businesses. The Annapurna Scheme, one of the major government schemes for women entrepreneurs in India, encourages catering businesses by offering financial support. Eligible women can borrow up to ₹50,000 to cover essential expenses such as purchasing utensils, equipment, and raw materials.
The loan is repayable in 36 installments, ensuring flexibility for new business owners. However, This scheme requires both collateral and a guarantor, with assets pledged as loan security. By offering accessible funding, the Annapurna Scheme encourages women to transform their passion for cooking into sustainable enterprises, thereby promoting financial independence and empowering them within the MSME sector.
2. Pradhan Mantri Rozgar Yojana: Among the many government schemes for women, the Pradhan Mantri Rozgar Yojana (PMRY) is considered one of the most impactful in India. Its primary objective is to create skill-based self-employment opportunities for women across diverse fields. The scheme supports enterprises across manufacturing, trade, and service sectors, making it both flexible and inclusive.
This scheme provides women entrepreneurs with financial assistance, offering a loan subsidy of up to 15% of the total project cost, capped at ₹12,500 per borrower. Depending on the business type, they can access loans of up to ₹2 lakhs for enterprises in the business sector and up to ₹5 lakhs for those in the service industry. By bridging financial gaps and promoting self-reliance, the scheme actively encourages women to establish and expand their entrepreneurial ventures.
3. Mudra Yojana: The Mudra Yojana stands as one of the most widely recognized government schemes for women entrepreneurs in India, offering accessible financial support to help them establish or grow small and medium-sized businesses. Under this scheme, women can start ventures such as beauty parlors, tuition centers, tailoring shops, and other small enterprises.
The loan amount ranges from ₹50,000 to ₹50 lakhs, making it suitable for both beginners and established entrepreneurs. For loans below ₹10 lakhs, women can secure funds easily because the scheme does not require any collateral.
The scheme is divided into three categories:
- Shishu: Provides loans of up to ₹50,000 to help start a new business.
- Kishor: Offers loans ranging from ₹50,000 to ₹5 lakhs to support the expansion of existing enterprises
- Tarun: Loans from ₹5 lakhs to ₹10 lakhs aimed at business growth and expansion.
By offering flexible financing, Mudra Yojana empowers women to achieve financial independence and scale their entrepreneurial journey..
4. Cent Kalyani Scheme: Among the noteworthy government schemes for women entrepreneurs, the Scent Kalyani Scheme stands out as a strong initiative by the Central Bank of India. This scheme supports women running businesses in sectors such as retail, agriculture, and small enterprises.
One of its biggest advantages is that these loans do not require collateral or a guarantor, making them highly accessible for women entrepreneurs. Under the Cent Kalyani Scheme, eligible women can secure loans of up to ₹1 crore to start, expand, or sustain their businesses.
The interest rates are linked to prevailing market conditions, ensuring flexibility for borrowers. Additionally, the repayment period can extend up to seven years, giving women sufficient time to stabilize and grow their ventures. This scheme is a valuable step toward empowering women in the Indian business landscape.
5. Mahila Coir Yojana: The Mahila Coir Yojana is one of the unique government schemes for women that supports rural women who want to establish a coir-based business. After completing the required training, women entrepreneurs receive spinning machines at subsidized rates. The scheme subsidizes 75% of the cost of coir processing equipment, with the remaining 25% of the project cost also supported under the program. Eligible women over 18 years of age in rural areas can benefit greatly from this initiative.
6. Stand Up India Scheme: It provides financial support to women and marginalized groups, including scheduled castes and scheduled tribes. As part of this program, every bank branch must provide loans to at least one woman entrepreneur and one person from the SC/ST community. The loans range between ₹10 lakhs and ₹1 crore, enabling women to establish or expand businesses across different sectors.
7. Stree Shakti Yojana: The Stree Shakti Yojana is another empowering program under the government schemes for women. Women entrepreneurs who are part of the Entrepreneurship Development Program (EDP) can benefit from a 0.05% interest rate concession on loans above ₹2 lakhs. In addition to reduced loan costs, the scheme offers other incentives to support women-led businesses, helping them sustain and expand in competitive markets.
8. Udyogini Scheme: The Udyogini Scheme is a key initiative that focuses on making women financially independent by offering them affordable loans for business purposes. As one of the widely recognized government schemes for women entrepreneurs, it provides financial support at interest rates lower than those offered by commercial banks. Women with a family income of less than ₹40,000 per year are eligible to apply, ensuring that economically weaker sections of society can also step into entrepreneurship.
9. Mahila Udhyam Nidhi Scheme: The Mahila Udhyam Nidhi Scheme plays an important role in promoting gender equity in the entrepreneurial landscape. This scheme under the government schemes for women offers financial assistance to women-owned MSMEs and small-scale businesses. Women entrepreneurs can secure loans of up to ₹10 lakhs with a repayment tenure of up to 10 years. By easing financial barriers, this program empowers women to grow and sustain their businesses.
10. Trade-Related Entrepreneurship Assistance and Development (TREAD) Program: The TREAD Program is an impactful initiative under the government schemes for women entrepreneurs. Its objective is to enhance women’s entrepreneurial capabilities by providing financial assistance along with essential training and counseling.Lending institutions finance 70% of the project cost, while the government contributes up to 30%. This balance ensures that women not only receive funding but also acquire the necessary skills to successfully manage and scale their ventures.
Challenges Faced by Women Entrepreneurs in India
Despite the availability of multiple government schemes for women, many female entrepreneurs in India still face hurdles in their business journeys. Some key challenges include:
- Limited Access to Finance: An IFC report (2022) revealed that almost 90% of women entrepreneurs had not accessed loans from formal financial institutions, restricting their business expansion.
- Restricted Professional Networks: A Google-Bain survey found that 49% of women entrepreneurs reported inadequate professional support due to exclusion from business networks, making it harder to scale.
- Lack of Training Opportunities: Many women entrepreneurs highlight insufficient training as a significant barrier to business expansion and competitiveness in the market.
Remarks
While various government schemes for women entrepreneurs in India provide strong financial and developmental support, private financing options also play a vital role. For instance, Tata Capital offers hassle-free MSME loans tailored for women entrepreneurs, featuring quick approval, flexible repayment options, and competitive interest rates starting from 19%. With both government and private sector initiatives working together, women in India today have more opportunities than ever before to achieve financial independence and build thriving businesses.