Quick take
Women entrepreneurs in India can access collateral-free business loans from ₹50,000 to ₹1 crore through government-backed schemes. This guide covers every option — Mudra, Stand-Up India, Mahila Udyam Nidhi, Stree Shakti, and bank-specific women’s loan products — with exact eligibility, interest rates, and how to apply.
68% of all Mudra loans go to women borrowers. The Indian government has made women’s entrepreneurship a priority, with dedicated schemes, lower interest rates, and mandatory lending targets for banks. Yet most women entrepreneurs don’t know about these options. This guide changes that.
7 collateral-free loans for women entrepreneurs
#1 Best for Everyone
Mudra Loan for Women
Women get priority processing under PMMY. Shishu (up to ₹50K) requires no documents beyond Aadhaar+PAN. Many banks offer 0.25–0.50% interest reduction for women borrowers. Apply at any bank branch — they cannot refuse if you meet criteria.
#2 Highest Amount
Stand-Up India
Composite loans from ₹10 lakh to ₹1 crore for women starting new (greenfield) enterprises. Every bank branch MUST give at least one Stand-Up India loan to a woman entrepreneur. Covers term loan + working capital.
Apply: standupmitra.in or nearest bank branch. Must be 18+, new enterprise in manufacturing/services/trading.
#3 Manufacturing Focus
Mahila Udyam Nidhi (SIDBI)
Soft loans up to ₹10 lakh specifically for women setting up small-scale industries. 10-year repayment with 5-year moratorium. Through SIDBI and partner banks.
#4 Interest Discount
Stree Shakti Package (SBI)
SBI offers 0.50% interest rate concession to women entrepreneurs who have completed EDP training. Available for loans above ₹5 lakh. No upper limit on loan amount.
#5 Self-Help Groups
DAY-NRLM (Deendayal Antyodaya Yojana)
Interest subvention of 3–5% on loans to women Self-Help Groups (SHGs). Revolving fund of ₹10,000–15,000 per SHG. Community Investment Fund up to ₹2.5 lakh per SHG group.
#6 Up to ₹5 Crore
CGTMSE for Women
Women-owned MSMEs get the full CGTMSE benefit: collateral-free loans up to ₹5 crore. The guarantee fee is often lower for women entrepreneurs. Apply through any bank. Full CGTMSE guide →
#7 Grants (Not Loans)
PMEGP — Higher Subsidy for Women
Women get 25–35% subsidy (vs 15–25% for men) on new enterprise projects. Manufacturing up to ₹50L, services up to ₹25L. The subsidy is a grant — you don’t repay it.
Comparison: Which loan is right for you?
| Need | Best option | Amount |
|---|---|---|
| Quick small capital | Mudra Shishu | Up to ₹50K |
| Starting new business | Stand-Up India | ₹10L–1Cr |
| Scaling existing business | CGTMSE | Up to ₹5Cr |
| Manufacturing unit | Mahila Udyam Nidhi | Up to ₹10L |
Documents needed
Aadhaar card, PAN card, passport-size photos, address proof, business plan/project report, Udyam registration certificate, bank statements (6 months), and ITR (if applicable). For Stand-Up India, you also need a project report from a CA or chartered engineer.
Built for women entrepreneurs
OpenBiz helps women entrepreneurs access the right loans, registrations, and compliance
From MSME registration to loan application, our AI-powered platform guides you through every step. We connect you with verified CAs and loan advisors who specialise in women’s business schemes.
FAQ
Can a housewife get a business loan?
Yes! Mudra Shishu has no income requirement. Many home-based businesses (tailoring, food, handicrafts) qualify for ₹50K–5L loans.
Do women get lower interest rates?
Many banks offer 0.25–0.50% concession. SBI’s Stree Shakti gives 0.50% discount. PMEGP gives 10% higher subsidy to women.
Related guides
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