In India, women are stepping into business, jobs, and education more than ever before. According to government reports, nearly 20% of all entrepreneurs in India are women, and the number is growing every year. To support this growth, banks and the government offer special Women Loan Scheme only for women. These Women Loan Schemes are designed to help women start a business, study further, buy a home, or manage daily needs. With easy repayment terms, low interest rates, and simple eligibility, these schemes give financial strength and independence to women.
Overview of Women Loan Scheme
Women’s loan schemes are special financial products created by banks, government programs, and microfinance institutions. These schemes are different from regular loans because they focus on women’s needs and goals. Many of them do not need heavy collateral, and the interest rates are often lower than standard loans. Some schemes are for women entrepreneurs, some for education, and some for housing. The main purpose of these loans is to give women better access to money so that they can grow in their personal and professional life.
List of Best Women Loan Scheme in India in 2025
1. Mudra Yojana
Mudra Yojana offers loans to women entrepreneurs for small businesses. It is one of the most popular loan schemes and covers a wide range of activities such as shops, manufacturing, and services.
Key Features:
- Loan amount: ₹50,000 to ₹10 lakh
- Interest rate: As per bank guidelines
- No collateral required
- Divided into Shishu, Kishor, and Tarun categories
Eligibility Criteria:
- Women aged 18 to 65 years
- Must run a small business or service activity
Why It Helps Women:
- No need for collateral
- Flexible categories based on loan size
2. Stree Shakti Yojana
This Women Loan Scheme is designed for women who want to start or expand small businesses. It offers reduced interest rates and simplified loan processing, especially if the woman owns the majority share of the business.
Key Features:
- Loan amount: Varies by bank (usually up to ₹50 lakh)
- Interest concession: 0.5% for women
- Tenure: Depends on loan type
- No collateral for small loans
Eligibility Criteria:
- Women must own more than 50% of the business
- Must be engaged in small business or trade
Why It Helps Women:
- Encourages women to own businesses
- Offers lower interest compared to regular loans
Suggested Read: Loan Apps for Students
3. Cent Kalyani Scheme
Launched by the Central Bank of India, this loan helps women in micro and small enterprises. It covers sectors like agriculture, cottage industries, and self-employed ventures.
Key Features:
- Loan amount: Up to ₹100 lakh
- Interest rate: As per bank rules
- No collateral required for certain limits
- Quick processing
Eligibility Criteria:
- Women engaged in small businesses, agriculture, or services
- Must be above 18 years
Why It Helps Women:
- High loan limit
- Encourages women in rural and semi-urban areas
4. Udyogini Scheme
The Udyogini Women Loan Scheme helps women from rural and weaker sections start small businesses. Offered mainly by government banks, it includes subsidies for eligible women.
Key Features:
- Loan amount: Up to ₹3 lakh
- Subsidy: 30% to 50% depending on category
- Low interest rates
- Covers over 80 small business activities
Eligibility Criteria:
- Women aged 18 to 55 years
- Family income below ₹1.5 lakh per year
Why It Helps Women:
- Special focus on rural women
- Provides subsidy benefits
5. Stand Up India
Stand Up India provides loans to women entrepreneurs belonging to SC/ST categories. It supports new business ventures in manufacturing, trading, or services.
Key Features:
- Loan amount: ₹10 lakh to ₹1 crore
- Tenure: Up to 7 years
- Composite loan covering term loan and working capital
- Collateral required as per bank rules
Eligibility Criteria:
- Women from SC/ST category
- Must be starting a new business
Why It Helps Women:
- Promotes first-time entrepreneurs
- Large loan size for bigger ventures
6. Orient Mahila Vikas Yojana Scheme
The Orient Mahila Vikas Yojana Women Loan Scheme, offered by Oriental Bank of Commerce, provides credit to women managing small and medium enterprises with lower interest rates and flexible terms.
Key Features:
- Loan amount: ₹10 lakh to ₹25 lakh
- Concession in interest rate up to 2%
- Collateral-free loans up to ₹10 lakh
- Repayment tenure flexible
Eligibility Criteria:
- Women with 51% or more ownership in business
- Must be in small or medium enterprise
Why It Helps Women:
- Supports larger projects
- Lower interest rates reduce burden
7. Bhartiya Mahila Bank Business Loan
This scheme is meant for women who want to grow businesses in manufacturing and small industries. It offers a wide range of loan amounts with reduced interest.
Key Features:
- Loan amount: Up to ₹20 crore for manufacturing
- Interest concession: 0.25%
- Repayment tenure: As per project needs
- Collateral rules as per RBI
Eligibility Criteria:
- Women entrepreneurs in manufacturing or business
- Must be above 18 years
Why It Helps Women:
- High loan limit
- Special focus on women-led industries
8. Dena Shakti Scheme
Offered by Dena Bank, this scheme is for women in agriculture, retail, small businesses, and micro-credit. It provides financial support at concessional rates.
Key Features:
- Loan amount: Up to ₹20 lakh
- Interest concession: 0.25%
- Collateral-free up to certain limits
- Flexible repayment
Eligibility Criteria:
- Women engaged in farming, retail, or small enterprises
- Must meet bank requirements
Why It Helps Women:
- Wide coverage of sectors
- Easy repayment with reduced rates
9. Mahila Udyam Nidhi
This scheme is run by SIDBI to help women set up new projects or expand existing businesses. It provides financial help with flexible repayment.
Key Features:
- Loan amount: Up to ₹10 lakh
- Repayment tenure: 10 years with moratorium
- Interest rates as per SIDBI norms
- For small businesses and services
Eligibility Criteria:
- Women entrepreneurs in small scale sector
- Must meet project requirements
Why It Helps Women:
- Long repayment period
- Encourages growth in small-scale industries
10. Pradhan Mantri Rozgar Yojana (PMRY)
This scheme provides loans to unemployed youth and women to start small businesses. It also offers subsidies and training support.
Key Features:
- Loan amount: Up to ₹10 lakh
- Subsidy up to 15% of project cost
- Repayment: 3 to 7 years
- Training provided before loan approval
Eligibility Criteria:
- Women aged 18 to 35 years (some relaxation for special groups)
- Family income below ₹40,000 per year
Why It Helps Women:
- Encourages unemployed women to start ventures
- Provides subsidy and training
Also Read: Small Credit Loan Apps
11. Mahila Coir Yojana
The Mahila Coir Yojana Women Loan Scheme, under the Coir Board, helps women in the coir industry by providing subsidies and loans to purchase coir machinery and equipment.
Key Features:
- Subsidy: 75% of machinery cost
- Loan support for balance amount
- Training and skill development included
Eligibility Criteria:
- Women engaged in coir industry
- Must have basic training
Why It Helps Women:
- Supports women in traditional industries
- Reduces burden of machinery cost
12. Trade-related Entrepreneurship Assistance And Development Program (TREAD)
The TREAD Women Loan Scheme is a government program that helps poor women start or expand businesses by providing loans and training, with NGOs assisting in loan distribution.
Key Features:
- Loan up to 30% of project cost
- Government grant covers training and support
- Balance from bank loans
- Focus on trade and small industries
Eligibility Criteria:
- Women from poor or disadvantaged sections
- Must work with NGO partners
Why It Helps Women:
- Combines finance with training
- Helps women in trade activities
13. Mahila Samriddhi Yojana
This scheme supports self-help groups (SHGs) of women by providing loans for income-generating activities. It aims to boost rural women’s income.
Key Features:
- Loan amount: ₹50,000 to ₹1.25 lakh
- Interest subsidy available
- Repayment tenure: Flexible
- Support through SHG network
Eligibility Criteria:
- Women SHG members
- Must be in rural or semi-urban area
Why It Helps Women:
- Strengthens SHGs
- Improves livelihood opportunities
Tips for Women Applying for Loans
- Eligiblity: Keep all documents ready like ID proof, income proof, and business plan.
- Credit score: Try to maintain a good credit history to get better interest rates.
- Business Plan: Compare different schemes before choosing the one that suits your needs.
- Intrest rate and subsidies: Check if there are any subsidies or special offers for women applicants.
Conclusion
Women loan schemes are a strong step toward financial equality in India. They not only make it easier for women to access money but also encourage them to dream bigger. Whether it is starting a new business, studying abroad, or buying a house, these schemes make the journey possible. With growing government support and more women-focused programs, the future looks bright for women who want to build financial independence.
FAQs
Q1. Which is the Best Government Loan Scheme for Women Entrepreneurs?
Schemes like Mudra Yojana, Stand Up India, and Udyogini are very popular and widely used.
Q2. Can Housewives also Apply for Women Loan Schemes?
Yes, housewives can apply if they want to start a business or have a valid purpose for the loan.
Q3. Is Collateral Always Required for Women Loans?
No, many schemes like Mudra Yojana and Cent Kalyani give collateral-free loans up to a certain amount.
Q4. What is the Maximum Loan Amount a Woman Can Get Under Government Schemes?
Depending on the scheme, women can get from small loans of ₹50,000 up to ₹20 crore in some cases.
Q5. Do Banks Offer Lower Interest Rates for Women Borrowers?
Yes, most women loan schemes give 0.25% to 2% concession on interest rates compared to normal loans.