May 23, 2024
business loans for women

For many women in India, starting a business is the only way to achieve financial independence and impact society. It is difficult for Indian women entrepreneurs to obtain ladies’ business loans due to their lack of credit history or collateral. Fortunately, there are other options available for Indian women that make obtaining finance easier than ever before!

Types of Loans Available for Women Entrepreneurs in India

There are multiple types of loans available for women entrepreneurs in India. Financial institutions usually provide ladies business loan and a long-term source of funding that helps you grow your business.

Those looking to expand their existing SMEs through expansion plans should consider taking up traditional business loans from lending institutions and government schemes like Mudra Yojana – Stand Up India Scheme (SUS). Under this scheme, women can access capital at lower interest rates with flexible repayment options such as deferred payment periods of up to seven years. There are zero prepayment penalty charges on funds borrowed under this scheme.

Factors that Affect Loan Eligibility in India

Before applying for a business loan in India, you should know the factors affecting your eligibility. These include:

● Credit Score

The more your credit score, the better your chance of getting approved for a loan and receiving lower interest rates. A good way to better your credit score is by ensuring all bills are paid on time and limiting how much debt you carry at any given time (no more than 50% of available credit).

● Collateral

Suppose you do not have personal assets or equity in real estate to pledge as collateral against loans. Lenders may not feel comfortable lending money without some guarantee. They seek assurance that they will get their investment back if something goes wrong with the business venture funded by their money. It brings us back to having sufficient funds saved up before starting a new venture!

Tips for Obtaining Business Loans for Women Entrepreneurs in India

Improving Credit Score

● Regularly check your credit score and report

You can get a free copy of both at or sign up for alerts from the three major credit bureaus to get updated information as it becomes available.

● Pay bills on time

Late payments will hurt your score, even if they’re just a day late. Ensure you have sufficient money in your account (or enough time before the due date) to cover all your bills so that none are missed or paid late by accident. If there is no other option than paying late, contact each creditor immediately after making payment arrangements with them so there is no negative impact on their records.

Utilizing Government Schemes for SME loans for new businesses in India

Many Government Schemes in India help obtain sme loan for new business in india. The Pradhan Mantri Mudra Yojana (PMMY) scheme aims to provide financial assistance to non-corporate small and medium enterprises (SMEs) across India. 

Established in 2015 with an initial investment of Rs 20 billion, the PMMY has disbursed over Rs 2 trillion as loans and interest subsidies to over 1 million micro, small, and medium businesses nationwide.

Another popular government program is the Annapurna Scheme, geared towards helping SMEs grow. This scheme provides subsidised credit facilities through financial institutions at low-interest rates ranging from 6% to 8%. This program was launched by Prime Minister Narendra Modi back when he was still chief minister of Gujarat state.

Stand Up India (SUFI) is another initiative launched by Prime Minister Modi in April 2016 as part of his vision for promoting entrepreneurship among poor people through easier access to capital markets.


With so many options available for women entrepreneurs, it is easy to forget the many benefits of getting a ladies’ business loan in India. The best part is that there are no restrictions on who can apply, and the process is simple enough that even someone without experience can do it. What are you waiting for? Get started today and avail benefits of it!

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