Have you ever considered how a small idea can completely transform your life? Imagine running a successful business from home – perhaps a handicraft store, a catering service, or an online shop – but a lack of funding has stalled everything.
I know how daunting this challenge seems. But the good news is that in 2025, the Government of India launched special business loan schemes for women entrepreneurs, offering easy, unsecured financing.
These schemes not only provide funding but also help strengthen your business. Today, we’ll explore them in detail so you can take immediate action.
The Importance of Women Entrepreneurship: Why These Loans Are a Game-Changer?
Women-run MSMEs in India now account for over 20% of the total, creating jobs and strengthening the economy.
But a lack of funding remains a major obstacle.
To address this, the government has launched several schemes, such as Stand-Up India and the Mudra Yojana, which prioritize women.
These loans are available at low interest rates, without collateral, and also provide training.
If your business is in the manufacturing, service, or trade sectors, these are perfect for you.
Top 6 Government Business Loan Schemes: Details and Benefits
Here, we’ll take a look at the most popular schemes for 2025. We’ll explain the eligibility, loan amount, and benefits for each one so you can easily choose.
1. Mudra Yojana (Pradhan Mantri Mudra Yojana)
This scheme is best for small businesses. Women receive special priority, especially in textiles, handicrafts, and small manufacturing.
- Loan amounts: Shishu (up to ₹50,000), Kishor (up to ₹5 lakh), and Tarun (up to ₹10 lakh).
- Eligibility: 18+, any small business (except farms or corporates), no collateral.
- Benefits: Zero processing fees, low interest (8–12%), repayment period up to 5 years.
2. Stand-Up India
Designed for SC/ST and women, it is for greenfield projects.
- Loan amount: ₹10 lakh to ₹1 crore.
- Eligibility: At least 51% stake held by women, manufacturing/service/trade sector.
- Benefits: Direct loan from the bank, training support, 7-year repayment period.
3. Udyogini Scheme
For economically weaker women, it promotes skill-based businesses.
- Loan amount: ₹3 lakh to ₹15 lakh.
- Eligibility: 18–55 years of age, family income less than ₹1.5 lakh/year, SC/ST/OBC women preferred.
- Benefits: No collateral, subsidy, EDP training.
4. Annapurna Scheme
Perfect for food and catering businesses, backed by SBI.
- Loan amount: Up to ₹50,000.
- Eligibility: Women who want to start/expand catering, guarantor required.
- Benefits: 36-month repayment, use for kitchen equipment.
5. Cent Kalyani Scheme
This scheme from the Central Bank of India is for retail, agriculture, and manufacturing.
- Loan amount: Up to ₹1 crore.
- Eligibility: Women running new or existing businesses.
- Benefits: No processing fees, low interest.
6. Stree Shakti Yojana
For rural/semi-urban women, benefits SHG members.
- Loan amount: 0.05% concession on loans above ₹2 lakh.
- Eligibility: EDP certificate, rural area.
- Benefits: Low interest, group loan option.
These schemes are updated in 2025, such as the new term loan up to ₹2 crore for SC/ST women in Budget 2025.
Eligibility Criteria: Who Can Apply?
Common criteria across most schemes are:
- Age: 18+
- Business: Micro/small, women holding 51%+ stake
- Documents: Aadhaar, PAN, business plan, income proof
- Sector: Trade, service, manufacturing (education/retail trade exempt in some cases)
Even if you’re a housewife, you can apply – just show a viable plan.
Check out case studies on Moneycontrol.
How to Apply: Step-by-Step Guide
- Choose a scheme: According to your needs.
- Prepare documents: ID proof, project report.
- Visit a bank/portal: Such as the Mudra portal or local bank branch.
- Submit your application: Online/offline, preliminary approval can be obtained in 59 minutes.
- Follow-up: Join training.
The process takes 8–12 days, and women receive priority.
Benefits: Why Choose This Loan?
- Easy access: No guarantee, low interest (starting at 8%)
- Support: Training, mentoring
- Growth: Business expansion, job creation
Challenges and Tips: For Success
Sometimes, rejections are due to lack of documentation or a business plan.
Tips: Develop a strong plan and seek help from local NGOs.
Risk: Loan repayment, but easy with low interest rates.
Friends, these loans can give wings to your dreams. Apply today and take your business to new heights.
If you have any questions, let us know in the comments – we’re here!