Loan Schemes for Women Entrepreneurs in India 2026

Women entrepreneurs in India can still get government-backed business loans in 2026, but the landscape has changed: Stand-Up India ended on 31 March 2025 and its revamp, along with the ₹2 crore first-time entrepreneur loan announced in Budget 2025, had not been launched as of October 2026. The routes that work today are Mudra loans (up to ₹20 lakh, collateral-free), CGTMSE-guaranteed loans with 90% cover for women-owned units, PMEGP where open, self-help group loans under DAY-NRLM, and state schemes.

Status of women's loan schemes as of October 2026

Mudra loans: the default starting point

Mudra loans are collateral-free business loans from banks, NBFCs and microfinance institutions for trading, manufacturing, services and allied activities. There are four slabs: Shishu up to ₹50,000, Kishore up to ₹5 lakh, Tarun up to ₹10 lakh, and Tarun Plus up to ₹20 lakh (only after repaying a Tarun loan). Women account for about 68% of Mudra beneficiaries, according to government figures released on the scheme's tenth anniversary in April 2025.

The interest rate is set by the lender; there is no fixed "women's rate" under Mudra. Some banks offer women a small concession under their own packages (SBI's Stree Shakti package is a well-known example), so ask your bank what applies today. For the step-by-step process see how to apply for a Mudra loan and the pillar guide on business loans and Mudra loans.

CGTMSE: collateral-free loans with 90% cover for women

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) guarantees bank loans to micro and small enterprises without collateral or third-party guarantee. Two changes matter for women:

• From 10 December 2024, guarantee cover for women-owned MSEs was raised from 85% to 90%, according to a government reply in Parliament.
• From 1 April 2025, the scheme covers loans up to ₹10 crore.

Higher cover makes banks more willing to lend without property as security. Ask the branch to sanction your loan "under CGTMSE" and check the annual guarantee fee in the sanction letter.

PMEGP: higher subsidy for women

Under PMEGP, women count as a special category: own contribution is 5% of project cost, and the margin money subsidy is 25% in urban areas and 35% in rural areas. The catch in 2026 is status: PMEGP's approval for 2021-22 to 2025-26 ran to 31 March 2026, so confirm on the KVIC PMEGP portal or with your District Industries Centre that applications and subsidy releases are open. Full details are in our PMEGP loan subsidy guide.

Self-help group loans for rural women

Rural women in self-help groups can borrow as a group under DAY-NRLM: loans up to ₹3 lakh at 7%, collateral-free loans up to ₹20 lakh, and individual enterprise loans through the Lakhpati Didi push. See our detailed guide on DAY-NRLM SHG loans and Lakhpati Didi.

Stand-Up India and the ₹2 crore scheme: what happened

Stand-Up India, launched in April 2016, required every scheduled commercial bank branch to finance at least one woman and one SC/ST borrower with ₹10 lakh to ₹1 crore for a greenfield unit. On 16 March 2026 the Finance Minister told the Lok Sabha that the scheme ended in March 2025, that NITI Aayog and other departments had studied it, and that a redrafted version would give more benefits. Separately, Budget 2025-26 announced term loans up to ₹2 crore for 5 lakh first-time women, SC and ST entrepreneurs over five years.

As of October 2026, neither has published guidelines or an application portal. Some banks may still show old Stand-Up India pages. Until an official notification appears, use Mudra plus CGTMSE for the same purpose: a collateral-free bank loan for a new unit.

State schemes (examples)

Many states run their own programmes through women's development corporations, rural livelihood missions or District Industries Centres. Two examples, with terms that differ between official and secondary sources:

• Karnataka Udyogini (Karnataka State Women's Development Corporation): bank loans for small businesses with a state subsidy that is higher for SC/ST women and family-income limits.
• Gujarat Mukhyamantri Mahila Utkarsh Yojana: interest-free loans (the state pays the interest) to women's joint liability and earning groups.

Confirm the current subsidy, income limit and whether the scheme is open with the state corporation or your DIC before applying.

Documents usually needed

• Aadhaar, PAN and photographs of the applicant
• Proof of business address (rent agreement, electricity bill)
• Udyam registration (free on udyamregistration.gov.in)
• Project report or business plan with quotations for machinery or stock
• Bank statements for the last 6-12 months; ITR and GST returns if the business exists
• Category or caste certificate if claiming a special-category benefit

Step-by-step: how to apply

1. Register on Udyam with Aadhaar.
2. Prepare a simple project report showing cost, sales and monthly cash flow.
3. Check your CIBIL score; see how to check your CIBIL score free.
4. Apply on the Jan Samarth portal (jansamarth.in) for Mudra or PMEGP-linked loans, or visit your bank branch and ask for a Mudra loan with CGTMSE cover.
5. Bank appraisal: the branch verifies documents, may visit the business site and sanctions the limit.
6. Sign the sanction letter after checking the interest rate, processing fee and guarantee fee.

There is no fee to apply for any government scheme. Do not pay agents who promise a "women's subsidy loan" for a commission.

Worked example: a ₹8 lakh Mudra Tarun loan

A woman opening a tailoring and boutique unit needs ₹8 lakh for machines and stock. She applies for a Mudra Tarun loan with CGTMSE cover.

• At an illustrative 11% for 5 years (60 months): EMI = ₹17,394, total interest about ₹2,43,636.
• If her bank gives a 0.5% women's concession (10.5%): EMI = ₹17,195, total interest about ₹2,31,707.
• Saving from the concession: about ₹11,929 over five years.

The concession helps, but repayment capacity matters more: monthly profit should cover the ₹17,000-plus EMI comfortably. Try your own figures in the EMI calculator.

Common rejection reasons

• Low CIBIL score or an earlier default in the applicant's or spouse's name
• No project report or unrealistic sales numbers
• Business not registered on Udyam, or no address proof
• Applying for an expired scheme such as old Stand-Up India
• Activity on the bank's negative list

How to complain

1. Write to the branch manager and then the bank's grievance redressal officer; ask for rejection reasons in writing.
2. If unresolved in 30 days, complain to the RBI Integrated Ombudsman at cms.rbi.org.in.
3. For scheme delivery issues, use CPGRAMS (pgportal.gov.in) or the District Industries Centre.
4. Report fake loan websites or agents asking for upfront fees at cybercrime.gov.in or 1930.

Key takeaways

• Stand-Up India ended on 31 March 2025; its revamp and the ₹2 crore first-time entrepreneur scheme were not live as of October 2026.
• Mudra (up to ₹20 lakh) with CGTMSE cover is the main active collateral-free route; women-owned MSEs get 90% guarantee cover.
• PMEGP gives women 25-35% subsidy, but confirm the scheme is open for 2026-27.
• Rural women in SHGs get loans up to ₹3 lakh at 7% under DAY-NRLM.
• Applications are free; never pay an agent.