Government Schemes for Women Entrepreneurs in India: Complete Guide

Why Dedicated Schemes for Women Entrepreneurs Exist

Women lead more than 20 percent of India’s registered micro, small and medium enterprises, yet access to formal credit, institutional support and growth capital remains a persistent barrier for many women-led businesses, often compounded by limited collateral, thinner credit histories, and social or logistical constraints on time and mobility. The schemes below exist specifically to address these gaps through relaxed collateral requirements, dedicated funding windows, and, in several cases, training and mentorship layered on top of the financing itself.

Stand-Up India

What is Stand-Up India?

Stand-Up India is a scheme that facilitates bank loans between Rs 10 lakh and Rs 1 crore to at least one woman borrower and one SC or ST borrower per bank branch, for setting up a greenfield enterprise in manufacturing, services, trading or the agri-allied sector, covering up to 75 percent of the total project cost, with the balance met through the borrower’s own margin money and any applicable convergence support.

The “at least one woman entrepreneur per bank branch” design is deliberate, ensuring the scheme’s reach is not concentrated in a handful of active branches but spread systematically across the banking network.

Pradhan Mantri Mudra Yojana

What is Mudra Yojana for women entrepreneurs?

Mudra Yojana provides collateral-free loans up to Rs 20 lakh, structured across Shishu, Kishor and Tarun categories based on business stage and scale, and while the scheme is open to all eligible micro and small entrepreneurs, a substantial share of beneficiaries are women, with banks encouraged to apply relaxed norms for women-led applications.

TREAD Scheme

What is the TREAD Scheme?

TREAD, the Trade Related Entrepreneurship Assistance and Development scheme, provides a government grant of up to 30 percent of project cost to NGOs supporting women entrepreneurs from economically disadvantaged backgrounds, with the remaining project cost financed as a bank loan, and training and counselling delivered through the partnering NGO rather than directly by a bank.

Udyogini

What is the Udyogini Scheme?

Udyogini is a scheme, primarily implemented through state-level women’s development corporations and cooperative banks, that provides financial assistance to women entrepreneurs, particularly from economically weaker sections, to start small businesses across notified categories of trade, manufacturing and service activities, often with subsidised or interest-free lending for eligible applicants.

Annapurna Scheme

What is the Annapurna Scheme for women?

The Annapurna Scheme provides loans specifically to women looking to start a food catering or small-scale food business, covering the cost of essential equipment and utensils, typically requiring a guarantor rather than collateral, and is offered through select banks and state-level financial institutions rather than as a single centrally administered programme.

CGTMSE Credit Guarantee

How does CGTMSE help women entrepreneurs?

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provides a government-backed guarantee on eligible loans, removing the need for collateral or third-party guarantee, which directly addresses one of the biggest practical barriers women founders report when approaching a bank for the first time, since CGTMSE-backed loans are assessed on business viability rather than the applicant’s ability to pledge property.

Women Entrepreneurship Platform (WEP)

What is the Women Entrepreneurship Platform?

WEP is a national digital platform launched by NITI Aayog that brings together mentors, investors, incubators and women entrepreneurs in a single ecosystem, functioning less as a direct funding scheme and more as a discovery and networking layer that helps women founders find the right financing, mentorship and market access resources across India’s broader entrepreneurship support system.

Comparison Table

How to Choose the Right Scheme

• Start with your business stage: Mudra Yojana suits micro and very early-stage ventures, while Stand-Up India suits a genuinely new, larger greenfield enterprise
• If you lack collateral entirely, prioritise schemes explicitly designed around collateral-free or guarantee-backed lending, namely Mudra, Stand-Up India, and CGTMSE-backed facilities
• If you are from an economically disadvantaged background and would benefit from structured training alongside financing, TREAD and Udyogini, both delivered through NGO or state-body partners, are worth exploring first
• If your business is specifically food-related, check Annapurna alongside general options, since it is purpose-built for that category
• Regardless of which financing scheme you pursue, register on the Women Entrepreneurship Platform to access mentorship and networking support that complements whatever funding route you choose
• Always confirm current loan ceilings, subsidy percentages and eligibility conditions with your bank or the relevant state department, since several of these schemes are revised periodically

Key Takeaways

• Stand-Up India and Mudra Yojana remain the two most widely accessed funding routes for women entrepreneurs, covering different business scales and stages.
• TREAD and Udyogini combine financing with training and are especially relevant for women from economically disadvantaged backgrounds.
• CGTMSE’s credit guarantee is not a scheme exclusively for women but is one of the most practical tools for removing the collateral barrier that disproportionately affects first-time women founders.
• The Women Entrepreneurship Platform complements funding schemes by offering mentorship, networking, and resource discovery rather than direct capital.
• Choosing the right scheme depends on business stage, collateral availability, and sector, and several schemes can be combined rather than treated as mutually exclusive.

FAQs

What is the maximum loan available under Stand-Up India for women entrepreneurs?

Stand-Up India facilitates bank loans between Rs 10 lakh and Rs 1 crore for women setting up a greenfield enterprise, covering up to 75 percent of the total project cost.

Can a woman entrepreneur get a loan without collateral in India?

Yes, schemes like Mudra Yojana and CGTMSE-backed lending are specifically designed to provide collateral-free or guarantee-backed credit, removing the need to pledge property or assets.

What is the difference between TREAD and Udyogini schemes?

TREAD routes government grants and bank loans through NGOs that also provide training and counselling, while Udyogini is primarily implemented through state-level women’s development corporations and cooperative banks with subsidized or interest-free lending for eligible categories.

Is the Annapurna Scheme available in every state?

No, the Annapurna Scheme is offered through select banks and state-level financial institutions rather than as a single centrally administered nationwide program, so availability and terms vary by location.

Is the Women Entrepreneurship Platform a funding scheme?

No, WEP is a national digital platform for mentorship, networking and resource discovery, connecting women entrepreneurs with investors, incubators and mentors, rather than directly disbursing loans or grants.

Can a woman entrepreneur combine more than one government scheme?

In many cases yes, since these schemes address different needs, such as collateral-free credit, training, or mentorship, though applicants should check each scheme’s specific conditions, as some, like TREAD and PMEGP-linked benefits, restrict duplicate assistance for the same activity.

Conclusion

Identifying which combination of schemes best fits your business stage, sector, and collateral position can significantly improve your funding outcome as a woman entrepreneur. Book a free consultation with Growthora Advisory’s funding advisory team today.