Business, MSME & Startups
8 min read Published 2025-02-01Updated 2026-10-10
Top 7 Central & State Government Schemes Empowering Women Entrepreneurs in 2025
Discover government funding, collateral-free loans, interest subvention, and market linkage programs available for female business founders in India.
By Sarkari Yojna Policy Research DeskVerified Informational Article
Women-led enterprises play a pivotal role in accelerating India's journey toward a 5-trillion-dollar economy. To support female founders, the Government of India and various state governments have launched specialized credit guarantee schemes, concessionary interest subventions, and incubation programs.
### 1. Stand-Up India Scheme
Under Stand-Up India (whose extended period ended in March 2025; a revamped scheme was announced in March 2026, so confirm current status with your bank), scheduled commercial banks were mandated to extend bank loans between ₹10 Lakh and ₹1 Crore to at least one woman borrower per branch for establishing greenfield manufacturing, service, or agri-allied units. Borrowers need only contribute a 15% margin, which can also be converged with other central/state capital subsidy programs.
### 2. Mudra Yojana (PMMY) – Women Special Quota (Tarun & Shishu)
Over 68% of total loans sanctioned under Pradhan Mantri Mudra Yojana have been availed by women entrepreneurs. Loans up to ₹50,000 (Shishu), ₹5 Lakh (Kishore), ₹10 Lakh (Tarun), and ₹20 Lakh (Tarun Plus, for borrowers who repaid a Tarun loan) are available completely collateral-free at concessional interest margins.
### 3. TREAD (Trade Related Entrepreneurship Assistance and Development)
Administered by the Ministry of MSME, TREAD provides government grants up to 30% of the total project cost to non-governmental organizations (NGOs) promoting self-employment projects for women in rural and semi-urban pockets.
### 4. PM Vishwakarma for Women Artisans
Women working in traditional crafts like tailoring (Darzi), doll and toy making, basket and mat weaving, and coir handicraft are provided with ₹15,000 modern toolkit grants and ₹3,00,000 credit at just 5% interest.
### 5. State Initiatives: Mukhyamantri Udyami Yojana & Ladli Behna
States like Bihar provide ₹10 Lakh assistance (50% grant + 50% interest-free loan) to women entrepreneurs, while Madhya Pradesh and Karnataka provide monthly cash supplements to boost household savings and micro-investments.
More Policy Insights & Analysis
Policy & Governance
Central Sector vs Centrally Sponsored Schemes: What Every Citizen Must Know
Housing & Urban Development
PM Surya Ghar Muft Bijli Yojana: Subsidy Calculation, Free Solar Units & Rooftop Installation Guide
Business, MSME & Startups