Budget 2025: FM Launches Rs 2 Crore Loan Scheme To Empower First-Time SC/ST Women Entrepreneurs

In a recent announcement, Finance Minister Nirmala Sitharaman revealed the government's budget plan for 2025-26, highlighting an important initiative to support first-time women entrepreneurs from Scheduled Castes (SC) and Scheduled Tribes (ST).

The new scheme will offer term loans of up to Rs 2 crore over the next five years to 5 lakh first-time women entrepreneurs from SC/ST backgrounds. Minister Sitharaman explained that the scheme would take lessons from the successful Standup India initiative.

Budget 2025: Benefits For Women Entrepreneurs

Despite minor improvements in gender parity, India still ranks low in the Global Gender Gap Report. Economic inequality continues to widen the gap between men and women in various fields, including entrepreneurship.

A 2022 report by the International Finance Corporation (IFC) highlighted that nearly 90 per cent of Indian women entrepreneurs have never accessed a loan from a formal financial institution. This is in contrast to 53 per cent of businesses led by men.

During the 2020 lockdown, 72 per cent of female-led businesses had no cash reserves, compared to just 53 per cent of male-led businesses. Furthermore, women receive only 27 per cent of the credit relative to the deposits they make, compared to 52 per cent for men. These figures reflect the financial challenges women face, including limited access to credit.

In addition to financial barriers, women entrepreneurs also struggle with limited access to professional networks. A Google-Bain survey found that 49 per cent of women entrepreneurs lacked sufficient professional support, often due to exclusion from both formal and informal networks. Women also face societal pressures, balancing professional aspirations with domestic responsibilities, which impact their productivity and business growth.

Existing Options For Women Entrepreneurs

The government already provides several schemes aimed at supporting women entrepreneurs:

Mudra Yojana: Offers loans up to Rs 10 lakh without collateral, with lower interest rates for women.

Stand-Up India Scheme: Provides loans ranging from Rs 10 lakh to Rs 1 crore for new greenfield businesses, ensuring that at least one SC/ST borrower and one woman is included per bank branch.

Prime Minister's Employment Generation Programme (PMEGP): Helps women start micro and small businesses by providing funding.

Udyam Shakti Portal: Encourages social entrepreneurship with mentorship, training programs, and market research. Women can receive up to Rs 25 lakh for projects, with Rs 10 lakh for service-based businesses.

Economic Empowerment of Women Enterprises and Start-ups by Women: This Ministry of Skill Development and Entrepreneurship program supports female micro-entrepreneurs through acceleration and incubation support, currently operating in Telangana, Rajasthan, and Assam.

These initiatives, together with the new scheme for SC/ST women entrepreneurs, are designed to provide much-needed financial support and empowerment, helping to bridge the gender gap in entrepreneurship and drive women's economic empowerment in India.