Government Funding for Women Founders in India: What's Open and What's Closed

Women are not a side note in Indian startup data. DPIIT says 48% of its 2,50,046 recognised startups have at least one woman director, and 2,147 of the 4,194 startups funded under the Seed Fund Scheme are women-led (PIB, 27 October 2026). Yet the central loan scheme built for women and SC/ST entrepreneurs, Stand-Up India, has ended, and its replacement hasn't launched. This guide maps the official routes we could verify, grouped by type, with what is women-specific, what isn't, and what is closed.

This guide is based on the official guidelines as of November 2026; always check the portal for the latest rules.

The map at a glance

What has closed, and what is still on paper

Stand-Up India has ended. It offered composite bank loans of Rs 10 lakh to Rs 1 crore for greenfield enterprises, with at least one woman borrower and one SC/ST borrower per bank branch (Stand-Up India portal). The Department of Financial Services page says the scheme ran up to 31 March 2025, in line with the 15th Finance Commission (DFS). In the Lok Sabha on 16 March 2026, the Finance Minister said it had come to an end in March 2025 and was being redrafted (AIR). The portal's home page still describes the scheme in the present tense, so don't read that as proof it is open. For scale: women accounts grew to 1,90,844 with Rs 43,984.10 crore sanctioned by November 2024 (PIB, 5 April 2025).

The Rs 2 crore scheme hasn't launched. Budget 2025-26 announced a new scheme for 5 lakh first-time women, SC and ST entrepreneurs, with term loans of up to Rs 2 crore over five years. The Finance Ministry's implementation status of 1 February 2026 says stakeholder comments on the scheme's Expenditure Finance Committee (EFC) memorandum were still under examination, and that the draft EFC note was for a "Stand-Up India Scheme 2.0" (Implementation of Budget Announcements). That suggests this scheme and the revamped Stand-Up India are one effort, though we haven't seen the government say so. We found no launch notice since. Until there is one, no bank can offer it.

Grants and subsidies

PMEGP. You borrow from a bank, and the government pays a margin money subsidy against the loan. Women are in the special category: subsidy of 25% of project cost in urban areas and 35% in rural areas, against 15% and 25% for general category (PIB, 30 May 2022). Your own contribution is 5% of project cost instead of 10% (MSME schemes booklet 2025-26). Project cost is capped at Rs 50 lakh for manufacturing and Rs 20 lakh for services. Women got about 45% of the margin money subsidy disbursed and made up nearly 40% of the units assisted (PIB, 7 May 2026). The cycle on the books ran 2021-22 to 2025-26, and we couldn't find an official notice of the next cycle's terms, so confirm on the PMEGP portal. Steps are in our PMEGP guide.

Seed Fund Scheme (closed). The last date for new startup applications was 31 May 2026 (Seed Fund portal), and the whole Rs 945 crore corpus has been committed (PIB, 17 April 2026). Incubators had approved about Rs 294 crore to women-led startups, out of about Rs 592 crore in all, by 31 January 2026 (PIB, 17 March 2026). The scheme was extended so approved startups can keep receiving disbursements. See our Seed Fund guide.

State policies. State policies can add women-specific benefits. As one example, Chhattisgarh's Industrial Development Policy 2024-30 (in force until 31 March 2030) gives new micro and small enterprises set up by women entrepreneurs, among other groups, a margin money subsidy of up to 25% of capital cost, capped at Rs 100 lakh, for capital cost up to Rs 10 crore. The policy defines a woman entrepreneur as a state domicile; a company needs at least 51% women shareholding, and at least 50% of the managerial, skilled and unskilled workers, counted separately, must be women (policy PDF). Check your own state on our state subsidies pages and schemes directory.

Loans and guarantees

CGTMSE. This is the strongest women-specific provision on the loan side. For guarantees approved on or after 1 April 2025, cover for women entrepreneurs is up to 90% of the amount in default, against 75% for "all other category of borrowers" (micro enterprises get 85% on facilities up to Rs 5 lakh), for credit facilities up to Rs 10 crore. Women entrepreneurs also get a 10% concession on the annual guarantee fee, which the lender pays to CGTMSE (CGTMSE scheme document). The loan is collateral-free, but the lender applies for the cover, not you, and enters your Udyam number (CGTMSE FAQ).

CGSS. For DPIIT-recognised startups, the annual guarantee fee is 1.5% for women entrepreneurs' units against 2% standard, paid by the lending institution (CGSS Gazette notification, 8 May 2025). Uptake is small so far: about Rs 39 crore of the roughly Rs 925 crore guaranteed went to women-led startups by 31 January 2026 (PIB, 17 March 2026). Which of the two guarantees fits you is covered in CGSS vs CGTMSE.

MUDRA. Women take most MUDRA loans: two-thirds of loans sanctioned, according to the Finance Minister (PIB, 8 April 2026). But the amounts are small. As of 27 March 2026, women borrowers had been disbursed Rs 9.02 lakh crore under Shishu, Rs 6.22 lakh crore under Kishor and Rs 1.09 lakh crore under Tarun, so about 93% of that total (our arithmetic) was in loans up to Rs 5 lakh. The release gives no TarunPlus figure for women. MUDRA sets no women-specific rate or limit. Its offerings page only says lenders "may consider" extra facilities for women, including an interest reduction, so ask your bank. MUDRA gives no subsidy. See our MUDRA guide.

SIDBI Prayaas. SIDBI says its Prayaas scheme reaches informal micro-entrepreneurs through partner institutions such as MFIs, NBFCs and fintechs, and that over 85% of beneficiaries were women, as of December 2023 (SIDBI). It isn't women-only, and the page doesn't state loan limits, so ask a partner institution.

More lenders are listed on our business loans page.

Equity

The Fund of Funds for Startups doesn't invest in you directly. SIDBI puts money into SEBI-registered Alternative Investment Funds (AIFs), which choose the startups. By 31 January 2026, those funds had invested about Rs 25,859 crore in startups in all, of which about Rs 2,995 crore went to women-led startups (the PIB has women-led data only from 2020) (PIB, 17 March 2026). A Rajya Sabha reply says women-led applicants are incentivised under this fund and under CGSS (PIB, 12 December 2025). For CGSS that is the lower fee above; we couldn't find the fund's incentive spelled out. FoF 2.0, with a Rs 10,000 crore corpus, was notified on 13 April 2026 (PIB). Its gazette notification has no women-specific provision, and the PIB notice said DPIIT would issue operating guidelines, which we haven't found. You need DPIIT recognition to be eligible. For trade-offs, read grant vs equity vs debt.

Incubation, mentoring and networks

• WEP (NITI Aayog). The Women Entrepreneurship Platform offers mentor matching, a repository of government schemes and the Award-to-Reward programme. Its newsletter for August to November 2024 also lists a Telangana state chapter (WEP newsletter). We saw no WEP grant, so treat it as a guide to other schemes.
• Startup India programmes. The Rajya Sabha reply lists capacity programmes such as WING and the Accelerating Women Entrepreneurs Programme, and a women-led category in the National Startup Awards (PIB, 12 December 2025).
• Proposed: SHE-Marts. Budget 2026-27 proposes community-owned retail outlets for rural women's enterprises (PIB backgrounder). We found no guidelines yet.

Selling to government, and tax

Central ministries and PSUs aim to buy at least 25% of annual purchases from MSEs, including a 3% sub-target for women-owned MSEs. If women-owned MSEs don't bid or can't match the lowest price, that 3% can be met from other MSEs (Ministry of MSME FAQ, 27 January 2022, on the DC-MSME site).

The startup tax holiday has no women-specific rule. It is open only to DPIIT-recognised private limited companies and LLPs that hold the Inter-Ministerial Board certificate, so a partnership firm can't claim it. The 100% profit deduction applies to any three consecutive tax years within the first ten from incorporation (DPIIT Tax Playbook, May 2026). See our Section 80-IAC guide.

Checklist before you approach a lender

• Udyam registration, if you want CGTMSE cover
• DPIIT recognition, if you're a startup and want CGSS or investor-backed routes
• Ownership papers (shareholding or partnership deed), because schemes define "woman-owned" differently
• A project report for your activity
• A question for the bank: "Will you cover this loan under CGTMSE or CGSS, and will you apply the women-entrepreneur cover?"
• Your state's industrial or startup policy, checked for a women provision

FAQ

Is there a government grant just for women to start a business?

We found no central grant exclusive to women. The nearest are PMEGP's higher subsidy, which is tied to a bank loan, and state policies. The Seed Fund grant route is closed to new applications.

Can I still apply for Stand-Up India?

No. Its validity ended on 31 March 2025, and the Finance Minister said in March 2026 that a revamped version is being drafted. Watch the Stand-Up India portal and PIB for a relaunch.

Do women get a lower interest rate?

Not by rule. In the official documents we reviewed for CGTMSE and CGSS there is no women-specific interest rate, and MUDRA's offerings page only says lenders "may consider" an interest reduction for women. The women provisions in the guarantee schemes are higher cover (CGTMSE) and lower guarantee fees paid by the lender (CGTMSE and CGSS). Rates are set by your lender.

Do I need a registered startup to use these schemes?

No. PMEGP and MUDRA work for individuals, and CGTMSE needs a micro or small enterprise with Udyam registration. CGSS, the Fund of Funds route and the tax holiday need DPIIT recognition.

Can I combine schemes?

Sometimes, but check each scheme's conditions. The same loan can't be covered twice: the CGSS notification says a facility covered by CGSS shouldn't be covered under another guarantee scheme. PMEGP excludes units that already got a government subsidy under another central or state scheme.

Where can I get help with the paperwork?

Start with the official portals and your bank branch. For project reports, see our services, and browse the blog for scheme guides.

Sources

• PIB: DPIIT trust-based governance and Startup India numbers (27 October 2026)
• PIB: One lakh startups with a woman director/partner; FFS, SISFS, CGSS women-led data (17 March 2026)
• PIB: Rajya Sabha reply on women-led startups (12 December 2025)
• PIB: Startup India FoF 2.0 notified (13 April 2026) and e-Gazette notification
• PIB: Startup India in FY 2025-26 (17 April 2026)
• Seed Fund portal: final notice, last date 31 May 2026
• PIB: 9 Years of Stand-Up India (5 April 2025)
• Department of Financial Services: Stand Up India scheme page
• Stand-Up India portal: scheme features
• All India Radio: Finance Minister on the revamped Stand-Up India (16 March 2026)
• Ministry of Finance: Implementation of Budget Announcements 2025-26 (1 February 2026)
• PIB: Continuation of PMEGP 2021-22 to 2025-26 (30 May 2022)
• Ministry of MSME: Schemes for MSMEs booklet 2025-26
• PIB: PMEGP in the 15th Finance Commission cycle (7 May 2026)
• PMEGP portal
• CGTMSE scheme document (updated 1 April 2026) and CGTMSE FAQ
• NCGTC: CGSS Gazette notification (8 May 2025)
• PIB: 11 years of PM MUDRA Yojana (8 April 2026) and MUDRA offerings
• SIDBI: Prayaas
• WEP newsletter, August to November 2024
• Chhattisgarh Industrial Development Policy 2024-30
• PIB backgrounder: Union Budget 2026-27, rural transformation (13 February 2026)
• Ministry of MSME: Public Procurement Policy FAQ (27 January 2022), DC-MSME copy
• DPIIT Tax Playbook for the Startup Ecosystem (May 2026)

Cover photo: Gowtham AGM on Unsplash