India is witnessing a wave of women-led businesses, from small startups to successful enterprises. However, access to capital remains a major hurdle for many women entrepreneurs. Fortunately, several loan schemes and lenders now offer specialized loans for women in business, with flexible terms, lower interest rates, and government support.
In this blog, we’ll explore the best business loan options for women entrepreneurs in India.
Women often face challenges like:
Lack of collateral
Limited credit history
Lower access to formal financial networks
To support and empower women, many banks, NBFCs, and government bodies have introduced female-focused loan programs with relaxed eligibility and better repayment terms.
Loan Amount: Up to ₹10 Lakhs
Type: Unsecured business loan
Purpose: For startups, small businesses, traders, manufacturers
Features:
No collateral required
Lower interest rates for women borrowers
Three categories: Shishu (up to ₹50,000), Kishor (₹50,000–₹5L), Tarun (₹5L–₹10L)
Loan Amount: ₹10 Lakhs to ₹1 Crore
Purpose: For SC/ST and women entrepreneurs starting a new enterprise
Type: Composite loan (working capital + term loan)
Eligibility:
Woman should own at least 51% of the business
First-time entrepreneur
Loan Amount: Up to ₹1 Crore
Interest Rate: Competitive, with no processing fee
Eligibility: Women in MSME sectors like manufacturing, trading, agriculture
Collateral: No collateral required
Loan Amount: Varies by state (up to ₹3 Lakhs in many cases)
Purpose: To support women from economically weaker backgrounds
Eligibility: Usually targeted at women aged 18–55 with family income below ₹1.5–2 Lakhs
Loan Amount: Up to ₹20 Lakhs
Interest Rate: 0.25% rebate for women
Sectors Covered: Agriculture, retail trade, manufacturing, micro-enterprises
Private Banks and NBFCs like HDFC, Axis, Bajaj Finserv, Lendingkart offer quick loans with simplified documentation
Gold loans or Loan Against Property for women with collateral
Microfinance institutions for rural women entrepreneurs
Lower interest rates and flexible repayment
Minimal or no collateral required
Special processing support for government schemes
Helps build financial independence and credit history
Register your business and obtain a Udyam (MSME) certificate
Keep basic documents ready: Aadhaar, PAN, bank statements, business proof
Maintain a clean CIBIL score or apply through co-applicants if necessary
Explore both government and private loan options
Whether you’re running a small boutique, a food startup, or a manufacturing unit, there’s a loan option designed for women like you. With the right funding, you can grow your business, create jobs, and contribute to India’s economy.
