India has no single "women's business scheme". Instead, many mainstream schemes give women-owned enterprises better terms: a bigger guarantee, a higher subsidy, a smaller own contribution or a reserved share of government purchases. This guide lists the central schemes where being a woman entrepreneur changes the numbers, and links each point to the official source so you can check it.
1. CGTMSE: a bigger guarantee on collateral-free loans
The Ministry of MSME's Credit Guarantee Scheme, run through CGTMSE, guarantees loans that banks give to micro and small enterprises without collateral or third-party guarantees. PIB says the scheme covers women-led enterprises and has "enhanced extent of guarantee" for women-led MSEs (PIB).
In numbers, the CGTMSE scheme document hosted by the Ministry of MSME lists 90% guarantee coverage for women entrepreneurs, compared with 75% for "all other" borrowers (CGTMSE scheme document, Jan 2025). A higher guarantee lowers the bank's risk, which can make it easier to get a loan sanctioned without property as security. We explain the whole scheme in our CGTMSE guide.
2. PMEGP: a smaller contribution and a bigger subsidy
The Prime Minister's Employment Generation Programme helps people set up new micro enterprises with a bank loan plus a "margin money" subsidy. Women are in the special category, which means (Ministry of MSME):
- your own contribution is 5% of the project cost instead of 10%;
- the subsidy is 25% in urban areas and 35% in rural areas, instead of 15% and 25% for the general category.
The maximum project cost is ₹50 lakh for manufacturing and ₹20 lakh for business or service units. You apply online on the KVIC portal, free of cost (PIB).
3. ZED certification: an extra 10% subsidy
ZED (Zero Defect Zero Effect) is the Ministry of MSME's quality and sustainability certification. The government already pays 80% of the certification cost for micro enterprises, 60% for small and 50% for medium. MSMEs owned by women get an additional 10% subsidy (ZED portal). Certification can help when you sell to large buyers or bid for tenders.
4. Public procurement: 3% reserved for women-owned MSEs
Under the Public Procurement Policy for Micro and Small Enterprises, central ministries, departments and CPSEs must buy 25% of their annual procurement from MSEs, and that includes 3% from MSEs owned by women (PIB). Udyam-registered MSEs can also get tender sets free and an exemption from earnest money deposit (DC-MSME FAQ). Start with our GeM seller guide.
5. Stand-Up India: what changed
Stand-Up India offered bank loans of between ₹10 lakh and ₹1 crore to SC, ST and women entrepreneurs above 18, for greenfield projects in manufacturing, services, trading or activities allied to agriculture, repayable over up to seven years (Department of Financial Services).
Status: the Department of Financial Services says the scheme was "upto 31.03.2025", in line with the 15th Finance Commission period. Budget 2025-26 announced a new scheme for 5 lakh first-time women, SC and ST entrepreneurs, with term loans of up to ₹2 crore over five years. The department says the note for this scheme is under preparation (DFS). Until it is notified, ask your bank what is available, and be wary of anyone who claims to be "taking applications" for it.
6. MUDRA: small collateral-free loans
MUDRA loans are not only for women, but they suit many small women-run businesses. Loans come through banks, RRBs, small finance banks, NBFCs and MFIs for non-farm income-generating activities, with no collateral, in four bands from Shishu (up to ₹50,000) to Tarun Plus (up to ₹20 lakh) (PIB).
7. State schemes worth checking
Many states add their own benefits. Two examples from official state sources:
- Maharashtra: under the Chief Minister Employment Generation Programme, women are in the special category, which gets a 25% (urban) or 35% (rural) subsidy (Commissionerate of MSME, Maharashtra). See Maharashtra schemes.
- Gujarat: the Viksit Gujarat Industrial Policy 2026 lists an additional 1% interest subsidy for women entrepreneurs and rental assistance of 75% of rent, up to ₹3 lakh a year for five years (Gujarat Industrial Policy 2026). See Gujarat schemes.
We keep a longer list on our schemes for women-led businesses page.
How to use these schemes well
- Register the business in the woman owner's name. Most benefits depend on who owns and controls the enterprise. Get Udyam registration with the correct details.
- Ask the bank directly whether your loan will be covered by CGTMSE, and at what coverage.
- Keep proof ready: Udyam certificate, PAN, bank statements and a simple project report.
- Never pay an agent for a "sanction". PMEGP and Udyam are free, and loan decisions are made by banks. Read how to spot scheme scams.
Last checked 11 Oct 2026 against the official sources linked in this guide.
Disclaimer: This guide is general information in plain English. It is not legal, tax or financial advice. Scheme rules, limits and portals change, so always check the official source linked above, and talk to your bank or a qualified professional before you apply or bid. OpportunityRaider is independent and is not a government website.
Was this useful?
Your answer is saved only in this browser. Nothing is sent to us.
Have a question or a tip? Join the conversation on our Facebook page.