Quick answer: As of October 2026, the schemes most useful to women founders are PMEGP (25% to 35% subsidy for women), PM Mudra (collateral-free loans up to ₹20 lakh), and CGTMSE (90% guarantee cover on loans to women-owned micro and small units). Stand-Up India lapsed on 31 March 2025 and its revamp, including the ₹2 crore loan for first-time women founders announced in Budget 2025, had not been launched when we checked.
The shortlist at a glance
All figures as of October 2026.
| Scheme | What you get | Best for | Apply at |
|---|---|---|---|
| PMEGP | Bank loan plus 25% (urban) or 35% (rural) subsidy for women | New manufacturing (up to ₹50 lakh) or service units (up to ₹20 lakh) | pmegp.msme.gov.in |
| PM Mudra | Collateral-free loan, ₹50,000 to ₹20 lakh | Small traders, home businesses, services | Any bank, NBFC or MFI |
| CGTMSE | Guarantee covering 90% of the loan for women-owned MSEs, up to ₹10 crore | Anyone a bank asks for collateral | Through your lender |
| PM Vishwakarma | ₹15,000 toolkit, training stipend, loans up to ₹3 lakh at 5% | Tailors, potters and other traditional trades | Common Service Centre |
| PM SVANidhi | Loans of ₹15,000, ₹25,000, then ₹50,000 | Street vendors | pmsvanidhi.mohua.gov.in |
| CGSS | Guarantee on startup loans up to ₹20 crore | DPIIT-recognised startups | Through your lender |
| WEP (NITI Aayog) | Free mentoring, incubation links, market access | Founders who need guidance, not just money | wep.gov.in |
| Udyogini (Karnataka) | Loan up to ₹3 lakh with part subsidy | Low-income women in Karnataka | KSWDC district office |
How to pick the right scheme
Start with three questions.
- Is the business new? PMEGP funds new units only (a separate second loan exists for upgrading). Mudra and CGTMSE work for new or existing businesses.
- How much do you need? Under ₹10 lakh: Mudra, PMEGP, or Vishwakarma if your trade qualifies. ₹10 lakh to ₹50 lakh: PMEGP for manufacturing, or a bank loan backed by CGTMSE. Above that: a CGTMSE-backed loan, or CGSS if you are a recognised startup.
- Do you want subsidy or just a loan? PMEGP is the only scheme here that gives a large one-time subsidy. It is also the slowest. If speed matters more, Mudra is simpler.
These schemes stack in practice. A PMEGP or Mudra loan can itself be covered by CGTMSE, which is why banks can lend without collateral.
The schemes in detail
1. PMEGP (Prime Minister’s Employment Generation Programme)
- What you get: Women fall in the “special category”. You put in 5% of project cost; the government pays a margin money subsidy of 25% in urban areas or 35% in rural areas; the bank lends the rest.
- Limits: Project cost up to ₹50 lakh for manufacturing and ₹20 lakh for business or service units.
- Who qualifies: 18 or older. Projects above ₹10 lakh (manufacturing) or ₹5 lakh (service) need at least Class VIII pass. New units only.
- How to apply: Online on the new PMEGP portal (pmegp.msme.gov.in, launched in June 2026 and linked to Jan Samarth) with Aadhaar. The portal scores your application; it goes to banks only above a minimum score (50/100 up to ₹10 lakh, 60/100 above). Udyam registration is mandatory before subsidy is released.
- Status: The 2021–26 cycle supported over 5.8 lakh projects. Its approval ran to 31 March 2026; a five-year extension was awaiting approval as of August 2026, and further subsidy release depends on it. Ask your District Industries Centre whether new applications are being processed for 2026–27.
2. PM Mudra Yojana
Collateral-free loans in four tiers: Shishu (up to ₹50,000), Kishor (up to ₹5 lakh), Tarun (up to ₹10 lakh) and Tarun Plus (₹10 lakh to ₹20 lakh, only for those who have repaid a Tarun loan). About 67% of Mudra borrowers are women. Apply at any bank, NBFC or microfinance institution. There is no women-specific interest rate; rates are set by the lender.
3. CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises)
You do not apply to CGTMSE yourself. Your bank covers your loan under it so you do not need collateral or a third-party guarantor. Since December 2024, the guarantee for women-owned micro and small enterprises covers 90% of the loan (85% earlier). From 1 April 2025 the ceiling rose to ₹10 crore. There is an annual guarantee fee, which banks often pass on to the borrower; ask for the amount in writing.
4. PM Vishwakarma
For self-employed artisans in 18 notified traditional trades (including tailor, potter, goldsmith, carpenter, barber and washerman). You get a certificate and ID, training with a ₹500 per day stipend, a toolkit worth up to ₹15,000, and collateral-free loans of ₹1 lakh (18 months) then ₹2 lakh (30 months) at 5% interest. Only one member of a family can register, government employees and their families are excluded, and you must not have taken a similar government credit-linked self-employment loan in the past five years (fully repaid Mudra and SVANidhi borrowers are eligible). Register only at a Common Service Centre. The scheme runs till 2027–28.
5. PM SVANidhi
For street vendors. After its 2025 restructuring, loans are up to ₹15,000, then ₹25,000, then ₹50,000, with lending extended to 31 March 2030. Those who repay the second loan can get a UPI-linked RuPay credit card, and digital transactions earn cashback of up to ₹1,600.
6. CGSS (Credit Guarantee Scheme for Startups)
For DPIIT-recognised startups. Since May 2025 it guarantees loans of up to ₹20 crore per borrower: 85% of the default amount on loans up to ₹10 crore and 75% above that. The annual fee is 1% for startups in 27 “champion sectors”. Banks, NBFCs and SEBI-registered AIFs can lend under it.
7. Women Entrepreneurship Platform (WEP), NITI Aayog
Not a loan. It is a free online platform linking women founders to incubation, mentoring, compliance help and market access, with partners including SIDBI. In 2025 it launched “We Rise” to prepare 100 women-led MSMEs for export. Useful if you are still shaping a business plan.
8. Udyogini (Karnataka only)
Run by the Karnataka State Women’s Development Corporation. Loans up to ₹3 lakh through banks, with a subsidy reported at 50% for SC/ST women and 30% for others, family income limits of ₹1.5 lakh to ₹2 lakh, and age 18 to 55. Training is required before disbursement. Other states run their own women’s schemes under different names; check your state women’s development corporation.
On hold or not currently open
| Scheme | Status as of October 2026 |
|---|---|
| Stand-Up India (₹10 lakh to ₹1 crore) | Expired 31 March 2025. In March 2026 the Finance Minister told Parliament a revamped scheme would go to Cabinet. No launch found. |
| Budget 2025 term loans up to ₹2 crore for 5 lakh first-time women, SC and ST founders | Announced February 2025. Expected to be delivered through the revamped Stand-Up India. Not launched when checked. |
| Startup India Seed Fund Scheme | Startup applications closed 31 May 2026; already-approved startups are still being funded through incubators. Watch seedfund.startupindia.gov.in for a new call. |
| SHE Marts (Budget 2026–27) | Announced as community-owned retail outlets for SHG women. Guidelines not yet seen. |
Schemes we left out, and why
Many websites still list Annapurna, Stree Shakti, TREAD and Mahila Udyam Nidhi as live business loans. We found no current official government or bank page confirming any of them is open. Content about them comes from lender blogs. The “Annapurna Yojana” in 2026 news is a West Bengal cash transfer, not a business loan. Mahila Samman was a small-savings certificate, not business finance. If an agent asks you for a fee to “process” any of these, walk away.
Common reasons applications fail
- Low PMEGP score from a thin project report. Spell out costs, market and repayment.
- Existing defaults in your or a co-applicant’s credit history.
- No Udyam registration when the bank or KVIC asks for it.
- Wrong scheme for the stage, such as applying to PMEGP for an existing unit’s working capital.
- Paying middlemen. None of these schemes charges an application fee.
FAQ
Q: Do I need collateral for these loans?
A: Mudra, PM Vishwakarma and SVANidhi are collateral-free. For PMEGP and larger loans, ask the bank to cover you under CGTMSE instead of asking for property.
Q: Can I get PMEGP and Mudra together?
A: Not for the same project. Choose PMEGP if you want subsidy and can wait; choose Mudra if you need money quickly.
Q: Is Stand-Up India still open?
A: No. It expired on 31 March 2025. A revamped version has been announced but not launched as of October 2026. If a bank still advertises it, ask whether new loans are being sanctioned.
Q: I run a home-based business. Which scheme fits?
A: Usually Mudra Shishu or Kishor. If you work in a notified trade such as tailoring, check PM Vishwakarma first for the toolkit and 5% loan.
Q: Does the business have to be 100% owned by me?
A: Rules vary. For CGTMSE’s women benefit, the unit must be women-owned; ask your bank how it defines this for partnerships and companies.
Q: Is there a single portal for all schemes?
A: The Jan Samarth portal links several government-sponsored loan and subsidy schemes. PMEGP and Vishwakarma still have their own application routes.
Official links
- PMEGP portal: https://pmegp.msme.gov.in
- PM Mudra Yojana: https://www.mudra.org.in/
- CGTMSE: https://www.cgtmse.in/
- PM Vishwakarma: https://pmvishwakarma.gov.in/
- PM SVANidhi: https://pmsvanidhi.mohua.gov.in/
- Credit Guarantee Scheme for Startups: https://www.startupindia.gov.in/content/sih/en/credit-guarantee-scheme-for-startups.html
- Women Entrepreneurship Platform: https://wep.gov.in/
- Karnataka State Women’s Development Corporation (Udyogini): https://kswdc.karnataka.gov.in/21/udyogini/en
- Jan Samarth: https://www.jansamarth.in/
- Startup India Seed Fund: https://seedfund.startupindia.gov.in/
- Stand-Up India (for updates on the revamp): https://www.standupmitra.in/
- Udyam Registration: https://udyamregistration.gov.in/
Last checked: October 2026. Rules, limits and fees change; confirm with the official source before you apply. This guide is general information, not legal, tax or financial advice.
Sources: PIB, PMEGP and MSME credit measures (May 2026); PIB, PM Vishwakarma (September 2026); PIB, 11 years of PM Mudra Yojana (April 2026); PIB, CGSS expansion (May 2025); PIB, credit for women entrepreneurs (March 2025); Lok Sabha Starred Question 343 on CGTMSE (December 2024); Lok Sabha Unstarred Question 3132 on PM Vishwakarma (August 2025); KVIC PMEGP guidelines (December 2023); Himachal Pradesh Khadi Board, PMEGP (2026); cgtmse.in (October 2026); Stand-Up India portal (October 2026); All India Radio News, Stand-Up India revamp (March 2026); Millennium Post/PTI (March 2026); All India Radio News, PM SVANidhi restructuring (August 2025); Siasat, Budget 2026 SHE Marts (February 2026); Outlook Business, KVIC FY26 results (May 2026); Social News XYZ/IANS, PMEGP disbursal (June 2026); Taxscan, Budget 2025 (February 2025); Adda247, Karnataka Udyogini (July 2026); Sarkari Yojana and GrowthOra, Seed Fund status (2026); India Sea Trade News, WEP We Rise (October 2025).
