In the 2025-26 Budget, Finance Minister Nirmala Sitharaman introduced a new initiative to support first-time women entrepreneurs, as well as individuals from the Scheduled Castes (SC) and Scheduled Tribes (ST) communities. This SC/ST Women Entrepreneurs Scheme offers term loans up to Rs. 2 Crore to 5,00,000 first-time entrepreneurs over the next five years. The financial support aims to address the challenges these marginalized groups face in accessing capital.
Experts, such as Ketan Mukhija, Senior Partner at Burgeon Law, highlighted the initiative’s potential but emphasized the importance of accompanying mentorship and skill development programs to further enhance its effectiveness. This move is expected to foster entrepreneurship and boost economic inclusion for women and underrepresented communities.
Budget Allocated for SC/ST Women Entrepreneurs Scheme
The 2025-26 Union Budget has earmarked significant financial support for empowering first-time women entrepreneurs, particularly those from Scheduled Castes (SC) and Scheduled Tribes (ST) communities. Finance Minister Nirmala Sitharaman unveiled a scheme providing term loans of up to Rs. 2 Crore to 5,00,000 new entrepreneurs over the next five years. This initiative aims to address the funding challenges faced by women and marginalized groups, promoting their participation in the entrepreneurial landscape.
While the loan scheme is a crucial step toward financial inclusion, experts such as Ketan Mukhija, Senior Partner at Burgeon Law, suggest that additional measures, including mentorship and skill-building programs, would significantly strengthen the impact, helping recipients navigate challenges and succeed in their ventures. The budget allocation reflects the government’s commitment to inclusive growth.
Also Read: PMEGP Scheme
Purpose of SC/ST Women Entrepreneurs Scheme
The SC/ST Women Entrepreneurs Scheme is designed to promote entrepreneurship among marginalized groups, which:
- Provide financial support to first-time women entrepreneurs from SC and ST communities.
- Facilitate access to term loans of up to Rs. 2 Crore for entrepreneurs.
- Empower women and marginalized groups to overcome funding challenges in business.
- Foster economic inclusion by encouraging participation in entrepreneurial activities.
- Create opportunities for self-reliance and growth within SC/ST communities.
Key Highlights of SC/ST Women Entrepreneurs Scheme
| Name of the Scheme | SC/ST Women Entrepreneurs Scheme |
| Launched By | Finance Minister Nirmala Sitharaman |
| Launch Date | February 1, 2025, during the Union Budget |
| Objective | Empower SC/ST women entrepreneurs with financial support |
| Target Group | First-time women entrepreneurs from SC and ST communities |
| Loan Amount | Term loans up to Rs. 2 Crore for eligible entrepreneurs |
| Number of Beneficiaries | 5,00,000 first-time entrepreneurs targeted over five years |
| Loan Tenure | Loans provided over a five-year period for repayment |
| Focus | Empower women and marginalized communities in entrepreneurial activities |
| Additional Support | Consideration of mentorship and skill development programs |
Eligibility Criteria
The SC/ST Women Entrepreneurs Scheme aims to support specific eligible individuals:
- The entrepreneur must be an Indian citizen with valid identification documents.
- Applicant must be a first-time woman entrepreneur from SC or ST communities.
- Business must be legally registered and comply with government regulations.
- Applicant should not have existing significant business loans or defaults.
Important Dates
- Budget Presentation Date: Announced on February 1, 2025, during the Union Budget.
Benefits of SC/ST Women Entrepreneurs Scheme
The SC/ST Women Entrepreneurs Scheme offers several benefits to support marginalized communities in business:
- Provides financial assistance of up to Rs. 2 Crore to eligible first-time women entrepreneurs.
- Encourages entrepreneurship among SC and ST communities, promoting economic independence and growth.
- Facilitates access to capital for businesses facing challenges in securing funding from other sources.
- Strengthens economic inclusion by empowering women and marginalized groups in business and leadership roles.
- Supports long-term entrepreneurial success with a five-year loan repayment plan and terms.
Number of Beneficiaries
- The scheme targets 5,00,000 first-time women entrepreneurs from SC/ST communities.
Salient Features
The SC/ST Women Entrepreneurs Scheme offers key features to support marginalized communities in entrepreneurship:
- Provides term loans of up to Rs. 2 Crore for first-time women entrepreneurs.
- Targets 5,00,000 beneficiaries from SC and ST communities over the next five years.
- Loans designed to address funding challenges and encourage entrepreneurship in marginalized groups.
- Offers financial inclusion and promotes self-reliance within economically weaker sections of society.
- Repayment of loans spread over a five-year period, making it manageable for entrepreneurs.
How to Get Benefits?
To avail the benefits of the SC/ST Women Entrepreneurs Scheme, follow these steps:
- Ensure eligibility as a first-time woman entrepreneur from SC or ST communities.
- Prepare a detailed business plan and legal documents for loan application.
- Apply through the official government portal or designated financial institutions.
- Submit necessary identification, business registration, and financial information as required.
- Await approval based on the evaluation of your business plan and eligibility.
FAQs
What is SC/ST Women Entrepreneurs Scheme?
The SC/ST Women Entrepreneurs Scheme provides term loans up to Rs. 2 Crore to first-time women entrepreneurs from SC/ST communities.
Who is eligible for the scheme?
First-time women entrepreneurs from SC and ST communities are eligible for the scheme.
How much loan can I avail?
Eligible applicants can avail of term loans up to Rs. 2 Crore.
How many beneficiaries will benefit from this scheme?
The scheme aims to support 5,00,000 first-time entrepreneurs over the next five years.
What is the loan repayment period?
The loan repayment period for the scheme is spread over five years.
What type of business is eligible for loans?
Businesses must be legally registered and demonstrate a viable business plan.