India has witnessed a significant rise in women-led businesses over the last decade. From urban entrepreneurs launching tech startups to rural women running microenterprises, female entrepreneurship is thriving. However, one common hurdle remains—access to timely and adequate working capital.
Working capital loans help businesses manage day-to-day operations, bridge short-term cash flow gaps, and seize growth opportunities. For women entrepreneurs, these loans can be the difference between sustaining operations or stagnating due to financial bottlenecks.
Here’s a guide to the best working capital loans tailored for women-owned businesses in India, covering government schemes, private sector options, and NBFCs.
1. Stand-Up India Scheme
Launched by: Government of India
Loan Amount: ₹10 lakh to ₹1 crore
Repayment Tenure: Up to 7 years
Eligibility: SC/ST or women entrepreneurs starting new businesses
Why it’s great:
The Stand-Up India Scheme is one of the most impactful initiatives for women entrepreneurs, offering collateral-free working capital loans through scheduled banks. The government also provides handholding support via its dedicated portal. It is ideal for women launching or expanding small and medium enterprises.
2. Mahila Udyam Nidhi Scheme – SIDBI
Launched by: Small Industries Development Bank of India (SIDBI)
Loan Amount: Up to ₹10 lakh
Repayment Tenure: Up to 10 years
Interest Rate: Subsidized for women
Why it’s great:
This scheme specifically aims to encourage women-led MSMEs (Micro, Small and Medium Enterprises) by offering loans with low interest rates and flexible repayment. The funds can be used for working capital, machinery purchase, or business expansion. Women entrepreneurs in manufacturing, trading, and services can apply.
3. Mudra Loans under PMMY (Pradhan Mantri Mudra Yojana)
Launched by: Government of India
Loan Categories: Shishu (up to ₹50,000), Kishore (₹50,000–₹5 lakh), Tarun (₹5 lakh–₹10 lakh)
Eligibility: Non-corporate, small business segments including women entrepreneurs
Why it’s great:
These are collateral-free loans provided by banks, NBFCs, and microfinance institutions. A significant portion of Mudra loans are directed toward women, especially in rural and semi-urban areas. Ideal for managing short-term capital needs or expanding small-scale operations.
4. Annapurna Scheme
Launched by: State Bank of India (and other banks)
Loan Amount: Up to ₹50,000
Repayment Tenure: 3 years
Target Audience: Women running food catering or small food businesses
Why it’s great:
Perfect for women running tiffin services, food stalls, or home kitchens, this scheme offers working capital to cover inventory, utensils, equipment, etc. While collateral may be required, the loan offers a grace period and easy repayment terms.
5. Private NBFC Loans for Women Entrepreneurs
Providers: LendingKart, FlexiLoans, Indifi, Kinara Capital
Loan Amount: ₹50,000 to ₹50 lakh
Disbursement Time: 48–72 hours
Eligibility: Varies by lender, often low on documentation
Why it’s great:
These fintech platforms cater to small and micro businesses, offering quick disbursement of working capital loans without heavy documentation. Some NBFCs offer lower interest rates and better terms to women entrepreneurs as part of CSR or inclusion initiatives.
Key Tips for Women Entrepreneurs Seeking Loans
- Maintain clean financial records: Lenders evaluate bank statements and cash flow.
- Register your business: Being a registered MSME can help access better loan terms.
- Leverage government schemes: Many offer subsidies or interest waivers.
- Build a credit profile: Even small loans repaid on time improve your creditworthiness.
Final Thoughts
Access to affordable working capital is crucial for any business, especially for women entrepreneurs navigating structural challenges. With several government-backed schemes and fintech solutions now available, women in India have more financing options than ever before.
