Business Loan for Women Entrepreneurs

India is home to a diverse business ecosystem. The country offers numerous opportunities for aspiring entrepreneurs, especially women. A significant contributor to this increase in female entrepreneurs is the easy access to business loans for women.

Lenders offer instant business loans to women entrepreneurs, enabling them to grow their businesses more effectively. Access to adequate capital enables women entrepreneurs to operate more efficiently and achieve business success.

The following are the features and benefits of small business loans for women: 

• Quick Loan Allotment 

The foremost advantage is that almost all financial institutions and NBFCs nowadays provide small business loans without any collateral. This has created an opportunity for women with limited funds to access business loans easily. To get a loan, all you need to do is fulfil the eligibility criteria.

These small business loans are available at attractive interest rates. The rate of interest depends on several factors, such as business model, loan tenure, financial status of the company, and the borrower’s credentials. 

• Flexible Repaying Terms

Most of these small business loans come with flexible payment terms to support the borrowers in repaying the loan EMIs with ease. You may also be able to negotiate repayment terms and EMI amounts with the lender, depending on your financial profile.

• Build Your Creditworthiness

For expanding business enterprises, repaying EMIs on time helps boost their creditworthiness. A strong repayment record enhances business credibility and positions women borrowers as valuable clients for lenders. A convincing business profile offers the borrower better chances to avail lower interest rates.

• Business Growth

Small business loans for women inspire budding entrepreneurs to initiate their ventures as well as develop their existing businesses. Particularly for small businesses, adequate funding is integral to meet their initial and working capital needs.   

• Tax Benefits

The interest levied on women's business loans by financial institutions is tax-d

Explore business loans for women from multiple lenders on Bajaj Markets. The table below highlights key details, including the maximum loan amount, interest rate, and tenure offered by each lender.

Disclaimer: The above-mentioned information is subject to change as per changes in the lenders’ policies.

A business loan for women in India is easily approved as long as you meet the simple eligibility criteria:

Age and Nationality

An Indian citizen at least 21 years of age when applying for the loan 

Business Type

Must be a sole proprietor, partner, or part of a private limited company engaged in trading, production, or services

Business Vintage

• Business vintage of a minimum of 1-3 years, and as a professional

• Minimum annual business turnover of ₹1 Lakh 

• CIBIL score above 700

• Possess clear business account records

• The company must be tax-compliant

Borrowers are advised to check their eligibility with an online business loan eligibility calculator.

After having gone through the eligibility criteria of business loans for women, take a look at its necessary documents and keep them handy to avoid future hassle.

The following documents must be presented when applying for a business loan for women:

Identity Proof

• PAN card

• Aadhaar Card

• Passport

• Voter ID 

• Driving Licence

Address Proof

• Rent agreement

• Utility bills

• Passport

• Aadhaar card

Income Proof

• Bank account statements for the last 6 months

• ITR copies with details such as profit and loss statement, income computation, and balance sheet for the last 2 years

Business Proof

• Sole proprietorship declaration or copy of partnership deed

• A certified copy of the Memorandum and Articles of Association (for companies)

The following is a step-by-step guide to applying for a small business loan for women:

1. Click on the ‘Apply For Loan’ button on this page

2. Enter your personal as well as professional details in the online application form

3. Accept the terms and conditions after reading carefully

4. Click on ‘CHECK YOUR OFFER’

Upon completion of all these steps, your documents will undergo verification. As soon as your loan is approved, the loan amount will be credited to your bank account within 24 hours. 

India offers several specialised business loan schemes to empower women entrepreneurs. These schemes provide financial assistance, relaxed lending terms, and capacity-building support to enhance women’s participation in the business ecosystem. Key schemes include:

• Pradhan Mantri MUDRA Yojana (PMMY)

This scheme offers loans of up to ₹10 Lakhs to non-corporate, non-farm small and micro enterprises, including those led by women. The loans under the Pradhan Mantri MUDRA Yojana (PMMY) are collateral-free, with interest rates determined by the lending institution. It is divided into three tiers based on the stage of the business: 

• Shishu (up to ₹50,000)

• Kishore (₹50,000–₹5 Lakhs)

• Tarun (₹5–₹10 Lakhs) 

• Mahila Udyam Nidhi Scheme

Implemented by SIDBI, the Mahila Udyam Nidhi Scheme provides up to ₹10 Lakhs for setting up new small-scale businesses or modernising existing ones. The loan tenure extends up to 10 years, including a moratorium of up to 5 years. Interest rates are market-linked.

• TREAD Scheme

Aimed at empowering women through credit, training, and support services, the TREAD scheme provides a government grant of up to 30% of the project cost. The remaining 70% is financed by participating financial institutions.

• Annapurna Scheme

Tailored for women starting food catering businesses, the Annapurna scheme offers loans up to ₹50,000 for purchasing kitchen equipment. A guarantor is required, and the loan is repayable over 36 monthly instalments. Interest rates vary as per market conditions.

• Cent Kalyani Scheme

Offered by the Central Bank of India, the Cent Kalyani scheme supports women entrepreneurs in sectors such as agriculture, retail, and manufacturing. Loans of up to ₹1 Crore are available without the need for collateral or guarantors. Interest rates are market-driven.

Reference of all T&C necessarily refers to the terms of the Partners as regards to pre-approved offers and loan processing time amongst other conditions.