Uttar Pradesh offers loans to boost women’s businesses

The Uttar Pradesh government in India will provide interest-free loans of up to ₹1 lakh (approximately $1,200 USD) to nearly one crore women associated with Self-Help Groups (SHGs).

The Mahila Udyami Credit Yojana aims to support rural women in starting or expanding small businesses and increasing household income. Women will receive the loans in three instalments, ₹20,000, ₹30,000, and ₹50,000, with each subsequent amount released upon repayment of the previous one.

The program intends to help women invest in productive business activities like tailoring, handicrafts, retail, food processing, and animal husbandry by funding equipment, materials, and livestock. Officials will issue dedicated credit cards to help women manage transactions and access funds. Deputy Chief Minister Keshav Prasad Maurya directed officials to ensure quick access to credit and stated the government will cover the loan interest.

This initiative connects to the Lakhpati Didi program, which seeks to help women earn at least ₹1 lakh annually. Government officials also discussed digital identity cards and online marketing to help SHG members. The success of the scheme will depend not only on distributing loans but also on providing training, market access, and financial guidance to women entrepreneurs so they can build sustainable businesses and repay their loans.