Government has announced a new Loan Scheme for Women, SC/ST Entrepreneurs in the Union Budget 2025-26
Credit to women by Public Sector Banks has seen a substantial increase over last 5 years
Jan Samarth Portal simplifies access to 15 government
Short Info: The government periodically examines all credit-related programs and implements a number of measures to make it easier for business owners, especially women entrepreneurs, to obtain loans. According to Union Budget 2025–2026, paragraph 32 “For 5 lakh women and first-time business owners from Scheduled Castes and Scheduled Tribes, a new program will be introduced. Over the next five years, this will offer term loans up to Rs. 2.00 crore. Lessons from the successful Stand Up India Scheme will be included into the scheme. Additionally, there will be online capacity building for managerial and entrepreneurial abilities.
The Pradhan Mantri MUDRA Yojana (PMMY), which was introduced on April 8, 2015, also offers entrepreneurs collateral-free loans up to Rs. 20 lakh to help them start or grow their businesses. Additionally, the Reserve Bank of India (RBI) has provided the following information regarding the credit that Public Sector Banks have given to women during the past five years:
Credit to women by Public Sector Banks
| (No. of A/cs in Lakh and Amount in ₹ Crore) | ||
| Financial Year | No of A/cs | Amount Outstanding |
| Mar-20 | 207.60 | 488,459.43 |
| Mar-21 | 289.46 | 731,617.22 |
| Mar-22 | 305.56 | 836,200.08 |
| Mar-23 | 350.90 | 1,008,935.62 |
| Mar-24 | 387.24 | 1,169,279.00 |
In order to effectively implement the schemes and address the issues that women and other potential beneficiaries face, the government has taken a number of actions. These actions include, but are not limited to, extensive public relations campaigns, the simplification of the application process, the Credit Guarantee Scheme, offering assistance in the Stand-Up India Scheme by lowering the margin money, and incorporating agricultural-related activities.
A one-stop online resource for connecting fifteen government-sponsored loan and subsidy programs is the Jan Samarth portal. It offers a rapid and effective method of loan application and approval based on a digital assessment of the applicant’s information. Additionally, a large number of banks and other financial institutions have created mobile apps and online platforms for the end-to-end digital processing of loan applications, eliminating the need for paper records and in-person meetings. In a written response to a question in the Lok Sabha today, Shri Pankaj Chaudhary, Minister of State in the Ministry of Finance, provided this information.
Key Features of the Loan Scheme
- Eligibility Requirements: Women entrepreneurs and business owners from SC/ST communities are eligible for the program. The program is also available to startups and micro, small, and medium-sized businesses (MSMEs) run by qualified candidates.
- Loan Amount: Depending on the borrower’s repayment ability, financial needs, and business kind, loans between ₹50,000 and ₹50 lakh will be given.
- Interest Rates & Subsidy: The government will provide subsidized interest rates to make credit accessible. Startups and first-time business owners will be eligible for additional interest subsidies.
- Collateral-Free Loans: One of the scheme’s key features is that a large number of loans will be provided without collateral, preventing financial limitations from impeding the growth of businesses.
- Government Guarantee: By offering partial credit guarantees, the government will lower the risk for banks and NBFCs and incentivize financial institutions to lend actively.
- Repayment term: To assist new enterprises in their early phases, there will be a moratorium period of up to 12 months during the repayment term, which will be variable and range from 3 to 7 years.
- Sectoral Focus: Companies in a variety of industries, including manufacturing, services, agribusiness, technology startups, retail, and other high-potential sectors, will be covered by the program.
Expected Impact
- Economic Growth: By making credit more accessible, the program will encourage entrepreneurship, which will result in the creation of jobs and an expansion of the economy.
- Women’s Empowerment: As more women-owned companies proliferate, the corporate environment will become more inclusive of all genders.
- Social Upliftment: By lowering income gaps and promoting financial independence, SC/ST businesses will have greater opportunity to engage in the formal sector.
- Innovation and Competitiveness: Innovative startups and SMEs can prosper with financial support, enhancing India’s standing internationally.
