Business Loan Schemes for Women: Udyogini, Mudra and Stand-Up India

There is no single government “women’s business loan”. A woman who wants to start or grow a business can use Mudra loans of up to ₹20 lakh, a state scheme such as Karnataka’s Udyogini, NBCFDC’s New Swarnima for backward-class women, or a bank’s own women-entrepreneur loan. Under CGTMSE, loans to women-led micro and small enterprises get 90% guarantee cover, so banks can lend without collateral.

One change matters before you apply: Stand-Up India, the ₹10 lakh to ₹1 crore scheme for women and SC/ST borrowers, stopped taking new sanctions after March 2025. A successor with term loans of up to ₹2 crore was announced in Budget 2025-26 but had not been launched when this page was checked.

Key facts

Our page on government business loan schemes covers schemes open to every borrower. This page compares only the routes that give women something extra.

Udyogini: Karnataka’s scheme for women

Udyogini is a Karnataka scheme, run by the Karnataka State Women Development Corporation (KSWDC). Women in other states cannot use it. The bank gives the loan and the corporation pays a subsidy on it.

KSWDC asks for Aadhaar, proof of residence (a residential certificate, voter ID or ration card), a project report, income and caste certificates from the Tahsildar, and an Aadhaar-seeded bank account. The KSWDC page does not state an interest rate, so ask the lending bank. Several other states run their own women’s schemes with different limits; check your state’s women development corporation.

Mudra loans for women

Mudra loans are open to men and women alike, but women hold most of the accounts. PIB reported that women borrowers made up 59.81% of PMMY loan accounts and 37.45% of the amount disbursed in FY 2024-25. The four categories are:

Mudra loans cover manufacturing, trading, services and activities allied to agriculture, and need no collateral. The Credit Guarantee Fund for Micro Units (CGFMU), run by NCGTC, guarantees them for the lender. The interest rate is set by each lender. The scheme does not fix a women-only rate, so compare offers. Our MSME and Mudra loans page explains the categories in more depth.

Stand-Up India: what happened and what replaces it

Stand-Up India gave composite loans (term loan plus working capital) of ₹10 lakh to ₹1 crore for new greenfield units run by women or SC/ST entrepreneurs above 18. Repayment ran up to 7 years with a moratorium of up to 18 months. The borrower put in at least 10% of project cost. The Department of Financial Services says the scheme ran “upto 31.03.2025”, and a Lok Sabha answer of 27 July 2026 confirmed it was operational for sanctions only till March 2025. By 28 February 2025 it had sanctioned 2.67 lakh accounts for ₹60,504 crore, and 1.99 lakh of the borrowers were women.

Budget 2025-26 announced a new scheme for 5 lakh first-time entrepreneurs who are women, SC or ST, with term loans of up to ₹2 crore over five years. As of 17 September 2026 no launch notification was found on the DFS website. Some bank pages still describe Stand-Up India, so confirm with the branch before you plan around it.

Collateral-free cover under CGTMSE

CGTMSE does not lend. It guarantees the bank’s loan, which lets the bank skip collateral and third-party guarantees. For women entrepreneurs the cover is 90% of the amount in default, at every loan size up to the ₹10 crore ceiling. Most other borrowers get 75% to 85%. CGTMSE raised the women’s cover from 85% to 90% through a circular dated 10 December 2024.

The guarantee fee is usually passed on to you, so ask the bank to show it in the sanction letter. Our CGTMSE collateral-free loans guide explains fees and claims.

Other routes: New Swarnima and bank schemes

New Swarnima for Women is run by the National Backward Classes Finance and Development Corporation (NBCFDC). It is open to women from backward classes with annual family income up to ₹3 lakh. It gives up to ₹2 lakh at 5% a year, repayable in quarterly instalments over up to 8 years, including a six-month moratorium. You apply through NBCFDC’s channel partners; its toll-free number is 18001023399.

Bank schemes are commercial products, not government schemes. Two examples:

• Bank of Baroda’s Mahila Swavalamban is for GST- and Udyam-registered units owned by women, or firms where women hold at least 51%. It offers a 50% rebate on processing charges, a tenure of up to 10 years, and no collateral up to ₹5 crore where CGTMSE covers the loan.
• Union Bank of India’s Union Nari Shakti lends from ₹2 lakh to women-owned MSMEs with Udyam registration and at least 51% women ownership. Its margin is 5% for loans up to ₹10 lakh and 15% above that.

Banks rarely publish the exact interest concession for women. Ask for the rate in writing and compare it with the business loan interest rates other lenders quote.

Documents and where to apply

1. Register your business on the Udyam portal. The bank schemes above ask for Udyam registration, and it is free.
2. Collect KYC: Aadhaar, PAN, and proof of address for you and the business.
3. Prepare a project report with cost, sales estimates and repayment plan. Existing businesses also need bank statements and, where filed, ITRs and GST returns.
4. Get category certificates if a scheme needs them, such as caste or income certificates for Udyogini or New Swarnima.
5. Apply on the JanSamarth portal (jansamarth.in), which links Mudra and other government-backed loan schemes to 200+ lenders, or apply at a bank branch.
6. For Udyogini, contact the KSWDC district office; for New Swarnima, contact an NBCFDC channel partner.

Before you sign, work out the monthly outgo with the EMI calculator.

Frequently asked questions

Which government loan scheme is only for women?

Udyogini (Karnataka) and New Swarnima (NBCFDC, for backward-class women) are women-only. Mudra is open to all, though women hold about 60% of its loan accounts.

Is Stand-Up India still available in 2026?

No. It stopped new sanctions after March 2025. A replacement with term loans of up to ₹2 crore was announced in Budget 2025-26 but had not been launched as of 17 September 2026.

What is the Udyogini scheme loan amount?

₹1 lakh to ₹3 lakh from a bank, with a 30% subsidy for general and special category women and 50% for SC/ST women. It is only for Karnataka residents aged 18 to 55.

Can a woman get a business loan without collateral?

Yes. Mudra loans up to ₹20 lakh need no collateral, and CGTMSE guarantees 90% of eligible loans to women-led micro and small enterprises, up to ₹10 crore.

Is Mahila Udyam Nidhi still running?

Many websites still describe it as a SIDBI scheme, but it does not appear on SIDBI’s current MSME loan pages. Ask SIDBI or your bank before planning around it.

Do women get a lower interest rate on Mudra loans?

The scheme does not fix a separate rate for women. Each lender sets its own rate, and some banks offer women-specific concessions on their own products.

How much of the business must a woman own?

Bank schemes such as Bank of Baroda’s and Union Bank’s ask for at least 51% ownership by women in firms and companies. Sole proprietorships must be owned by the woman applicant.

Sources

• Udyogini scheme — Karnataka State Women Development Corporation (checked 16 Sep 2026)
• 11 Years of Pradhan Mantri MUDRA Yojana (8 April 2026) — PIB (checked 16 Sep 2026)
• Stand Up India Scheme (SUPI) — Department of Financial Services (checked 16 Sep 2026)
• Lok Sabha Unstarred Question 1366, Stand Up India Scheme (27 July 2026) — Ministry of Finance (checked 16 Sep 2026)
• Extent of guarantee coverage — CGTMSE (checked 16 Sep 2026)
• Circular 241: coverage for women-led enterprises raised to 90% — CGTMSE (checked 16 Sep 2026)
• New Swarnima for Women — NBCFDC (checked 16 Sep 2026)
• Baroda Mahila Swavalamban — Bank of Baroda (checked 16 Sep 2026)
• Union Nari Shakti — Union Bank of India (checked 16 Sep 2026)