₹2 crore loan scheme for women entrepreneurs India 2026
A new scheme has been announced for 5 lakh first-time entrepreneurs (women, SC and ST) to provide term loans up to ₹2 crore over the next 5 years. The scheme is expected to borrow the “lessons” of Stand-Up India and also include online capacity building for entrepreneurship/managerial skills.
As per a Parliamentary reply (July 2025), implementation guidelines and budget requirements were being worked out, and the scheme was expected to be rolled out during the current financial year.
Table of contents
1) What is the ₹2 crore scheme and why it matters in 2026
For many women entrepreneurs, the real problem isn’t ideas—it’s working capital + term funding that’s big enough to scale (machines, interiors, vehicles, inventory, franchise setup, small manufacturing, etc.). That’s where this scheme is positioned: term loans up to ₹2 crore for first-time women entrepreneurs (also SC/ST).
Two signals in the announcement are important:
It will incorporate learnings from Stand-Up India (meaning: likely a bank-led process, structured eligibility, and handholding approach).
It includes online capacity building (so training/assessment may become part of the flow).
What’s not publicly fixed yet: exact interest subsidy (if any), collateral/guarantee structure, which portal/banks, sector exclusions, margin requirements, timeline windows, etc. The government has said guidelines were being finalized (July 2025).
2) Who can benefit (and what “first-time” usually means)
The scheme is clearly meant for first-time women entrepreneurs (and also first-time SC/ST entrepreneurs).
Since it references Stand-Up India learnings, it’s useful to understand how Stand-Up defines “first-time/greenfield”:
Stand-Up India supports greenfield enterprises and treats it as the beneficiary’s first-time venture in manufacturing/services/agri-allied/trading.
Practical interpretation for 2026 prep (safe assumption):
If you already run a business, the new scheme may still work if you’re setting up a new greenfield unit (new entity/new project/new line). But final rules will decide this—so prepare your case like a greenfield project with a clean project report and cost breakup.
3) ₹2 crore scheme vs Mudra vs Stand-Up India vs bank loans (comparison)
Here’s a clean way to pick the right route depending on ticket size and business stage.
A) Mudra (best for small-ticket, quick start)
Mudra is designed for small businesses and micro enterprises. In the Budget FAQs, Mudra categories are shown as:
Shishu up to ₹50,000
Kishor above ₹50,000 up to ₹5 lakh
Tarun above ₹5 lakh up to ₹10 lakh
Tarun Plus above ₹10 lakh up to ₹20 lakh (for borrowers who repaid earlier Tarun loans successfully; noted w.e.f. 24.10.2024)
It also notes collateral-free loans up to ₹20 lakh.
Use Mudra if: you’re starting small, validating demand, buying basic tools/stock, or you need speed more than size.
B) Stand-Up India (best for ₹10 lakh–₹1 crore greenfield)
Stand-Up India’s objective is to facilitate bank loans between ₹10 lakh and ₹1 crore to at least one SC/ST borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.
It also has credit guarantee support through NCGTC under the Stand-Up India guarantee framework (as per the Budget FAQ document).
Use Stand-Up India if: your project is real greenfield, and funding needed is up to ₹1 crore.
C) The new ₹2 crore scheme (best for scale-ready first-timers)
This is the missing middle between “small start” and “serious scale”: term loans up to ₹2 crore, targeted to first-time women (plus SC/ST) entrepreneurs.
Guidelines were stated to be under preparation and expected to roll out in the same financial year (per July 2025 reply).
Use this if: you’re ready with a project report, quotations, and clear revenue plan—and you need a meaningful capex + working capital structure.
D) Regular bank MSME loans + state schemes (best as “parallel options”)
Even if you’re targeting the ₹2 crore scheme, keep Plan B ready:
Regular MSME term loan + working capital (cash credit/OD)
State-level women enterprise subsidies / margin money support (varies heavily by state)
4) How to get ready before the detailed guidelines go live
If you want approval faster when the scheme formally opens, prep like a banker is already reading your file.
Step 1: Lock the “project story” in one page
Write a crisp 1-page note:
What you sell + who buys
Why your location is right (footfall, clusters, B2B buyers, logistics)
Monthly revenue estimate + margin assumption
Break-even timeline
Step 2: Build a clean project cost breakup (this matters more than people think)
Split into:
Capex: machinery, interiors, computers, vehicles, security deposit, etc.
Working capital: inventory, salaries, rent, marketing, utilities (3–6 months)
Contingency: 5–10% buffer
Attach 2–3 vendor quotations for major items.
Step 3: Get your identity + business compliance stack ready
Typical bank comfort pack:
PAN/Aadhaar, photo, address proof
Bank statements (6–12 months)
If applicable: GST, rent agreement, utility bill, existing invoices/orders
Basic bookkeeping (even in Excel is fine)
Step 4: Do Udyam early (it helps everywhere)
Udyam registration improves credibility and also aligns with other MSME measures (for example, Budget highlights mention credit cards for micro enterprises registered on Udyam portal).
Step 5: Keep the digital route in mind
A Parliamentary reply also notes Jan Samarth as a one-stop digital platform linking multiple government-sponsored loan/subsidy schemes (including Stand-Up India and PMMY).
Even if the ₹2 crore scheme uses a different workflow, being “digitally ready” helps: scanned PDFs, clean file naming, consistent signatures, etc.
5) Documents checklist (bank-friendly)
Use this as a practical checklist you can hand to a consultant or prepare yourself:
KYC: Aadhaar, PAN, photo, address proof
Banking: 6–12 months statements (all active accounts)
Business proof (as applicable): GST, Shop & Establishment, Udyam, trade license
Project Report (DPR): cost, revenue, margins, break-even
Quotations: machinery/interiors/IT/vehicle (where relevant)
Proof of premises: rent agreement/ownership + NOC (if rented)
Past experience proof (optional but strong): certificates, work history, vendor references
Basic financials: estimated P&L + cashflow for 12–24 months
6) Common rejection reasons (and how to avoid them)
Unclear use of funds → fix with itemized cost breakup + quotations
Over-optimistic sales numbers → show realistic assumptions + local benchmarks
Weak cashflow → show how EMI is serviced even in slow months
No working capital buffer → banks dislike “everything in capex” plans
Old defaults / overdues → clean up small overdues first (even consumer loans)
7) FAQs
1) Is this scheme live for applications in 2026?
It has been announced, and the government stated guidelines were being finalized and rollout was expected during the relevant financial year (per July 2025 reply). Check the latest official notification/portal updates before applying.
2) What is the maximum loan amount?
The announcement says term loans up to ₹2 crore.
3) Who is eligible?
It targets 5 lakh first-time entrepreneurs, including women, and also SC/ST first-time entrepreneurs.
4) Will there be training?
The announcement explicitly mentions online capacity building for entrepreneurship and managerial skills.
5) How is this different from Stand-Up India?
Stand-Up India is focused on ₹10 lakh–₹1 crore for greenfield enterprises.
The new scheme goes up to ₹2 crore and is meant to extend/support first-timers at a bigger scale.
6) Should I apply for Mudra first?
If your funding need is under ₹20 lakh, Mudra (including Tarun Plus) may be a faster fit.
If you genuinely need larger capex, prepare directly for the ₹2 crore file.
7) Where will applications likely happen?
Not officially confirmed in the announcement text. However, Stand-Up India and Mudra can be accessed through banks and are also referenced via Jan Samarth as a digital access layer.
8) What should I do today if I want this loan in 2026?
Do Udyam, prepare a DPR, gather quotations, keep clean banking history, and be ready to file immediately once official guidelines open.
For personalised help with Udyam registration and MSME loan paperwork, contact Eudyamaadhar MSME Consultancy at 📞 +91 9241250551 or visit 🌐 www.eudyamaadhar.org.