Gujarat’s zero-interest loan scheme, launched in June 2025, empowers women entrepreneurs with financial aid up to ₹2 lakh. Aimed at fostering economic independence, the initiative supports micro-enterprises and skill development. Backed by the Modi government, it targets women from marginalized communities, promoting financial inclusion and entrepreneurship across the state.
Gujarat Rolls Out Zero-Interest Loan Scheme for Women Entrepreneurs
In a significant move to bolster women’s entrepreneurship, the Gujarat government, in collaboration with the central government, launched a transformative zero-interest loan scheme on June 18, 2025. This initiative, inaugurated by Prime Minister Narendra Modi, offers loans of up to ₹2 lakh to women entrepreneurs, particularly those from marginalized communities, to start or expand their businesses. The scheme is designed to promote financial inclusion and economic self-reliance among women in Gujarat.
The program targets women from Antyodaya Anna Yojana (AAY) card-holding families across 13 aspirational talukas and two aspirational districts in Gujarat. It aims to support 50,000 women by providing not only financial assistance but also skill-building and market access opportunities. The Mukhyamantri Mahila Utkarsh Yojana, a complementary scheme, has already empowered over 10 lakh women through interest-free loans, demonstrating the state’s commitment to fostering micro-enterprises.
Under the new scheme, no collateral is required for loans up to ₹10 lakh, aligning with broader national policies to ease credit access for micro, small, and medium enterprises (MSMEs). This is particularly significant given that a 2025 Policy Circle analysis highlighted a credit shortfall of ₹20–25 lakh crore for MSMEs, with women entrepreneurs often facing entrenched biases in accessing funds. The zero-interest feature ensures affordability, enabling women to invest in ventures ranging from small retail businesses to innovative startups.
The Sakhi Sahas Yojana, with a ₹100 crore budget, complements this initiative by providing equipment assistance, loan guarantees, and capacity-building programs. Plans for working women’s hostels in major cities further support the ecosystem for female entrepreneurs. The scheme also emphasizes digital interventions, such as UPI-based transactions, to streamline financial processes and enhance accessibility.
Successful women entrepreneurs are expected to serve as role models, inspiring others in their communities to pursue business ventures. The Gujarat government has also partnered with banks to ensure quick loan processing and low interest rates for additional financial products, as seen in similar initiatives like the State Bank of India’s offerings for MSMEs.
This scheme is part of a broader national push to empower women entrepreneurs, with programs like the SC/ST Women Entrepreneurs Scheme and the Udyogini Scheme offering tailored financial support. The Gujarat initiative stands out for its focus on zero-interest loans, addressing the critical barrier of high borrowing costs. By fostering a supportive environment for women-led businesses, Gujarat is paving the way for a more inclusive economic landscape.
Disclaimer: This news report is based on information sourced from government announcements, media reports, and policy analyses available as of July 2025. Readers are advised to verify details with official government sources for the latest updates.