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India has been witnessing a growing start-up ecosystem, the rate of emerging women entrepreneurs however, is still below average. One of the primary factors contributing to this is lack of support and financial investment for women-led entrepreneurial ventures. Some stats on the ground reality in lack of funding: 

  • Startups, founded and co-founded by women account for less than 6% of total investments infused into the Indian startup ecosystem. 
  • Funding raised by Indian startups with at least one-woman founder accounted for mere 5.77% of the total startup investments in India for January 2018 – June 2020.  

There have been numerous initiatives launched by the government of India and other independent financial institutions addressing problems faced by women entrepreneurs like shortage of funds, and lack of assets in their name to keep as collateral. 

Udyogini Scheme 

Implemented by the Women development corporation to provide up to 30% subsidized loans of up to 3L for women entrepreneurs from rural and underdeveloped areas covering over 88 small scale industries. 


  • Age: 18-55 years 
  • Annual Family income: INR <1.5 L 

Cent Kalyani Scheme 

Offered by Central Bank of India with the intention to support women engaged in manufacturing and service activities. Loan of up to INR 100 L are provided, collateral free loans with no processing fee, without the need for a guarantor. 

Concession on interest rate: 

  • Loan up to INR 10 L – MCLR + 0.25%  
  • Loan above INR 10 L and up to INR 100 L – MCLR + 0.50% 
  •  Additional Interest concession of 0.25% if account is rated by external agency. 

Orient Mahila Vikas Yojna 

Provided by Oriental Bank, sanctions collateral free loans amounting to less than 10 lacs. If business loan applied for falls under the category of Small-Scale industries, the loan of up to INR 25 L is sanctioned, collateral free. Scheme offers a 2% relaxation in the interest rate and maximum tenure of 7 years. 


  • Holding 51% share in the organization. 

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Mudra Yojna Scheme 

Launched by the government of India to support women entrepreneurs who are seeking to start small businesses plan like beauty parlor, tuition center, a stitching shop. The scheme provides collateral free loans that can be availed as per three schemes

  • Shishu loan- sanctioned at the initial stage of businesses for a maximum amount of INR 50,000. 
  • Kishor loan- for pre-established businesses seeking to improve their services sanctioning a loan ranging from INR 50,000 to INR 5 L. 
  • Tarun loan- for the well-established businesses that are looking to expand, the maximum amount of loan that can be availed is INR 10 L. 

Annapurna Scheme 

Launched by the State Bank of Mysore and aims at providing financial benefits to women who are stepping into the food catering business. A loan of up to INR 50,000 can be availed with a repayment period of 3 years, with EMI for the first month waived off at an interest rate based on the prevailing market rate. The loan requires a guarantor, as well as collateral. 

Bhartiya Mahila Bank Business Loan 

Initiative of the 2013 government, India’s first women’s bank, under the SBI, catering to the banking needs of women. Collateral free loans up to INR 1 crore can be availed through CGTMSE and a maximum amount of INR 20 crore can be availed for manufacturing units. The loan has a repayment period of 7 years and the Interest rate charged is 10% with an additional 2%. 


  • Age bracket: 21 to 70 years. 

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