Ladki Bahin scheme to fund women entrepreneurs through interest-free loans

With the help of the Mumbai District Central Cooperative Bank, eligible women entrepreneurs can now get a loan to set up a small business

Mumbai: The state government has started using the ‘Mukhyamantri Majhi Ladki Bahin Yojana’ (MMLBY) in a unique way by allowing beneficiaries to access collateral-free, interest-free loans for setting up their own micro businesses. With the help of the Mumbai District Central Cooperative Bank, eligible women entrepreneurs can now get a loan to set up a small business.

Thane, India - March -08, 2026: "Saree Walkathon" On the occasion of International WomenÕs Day on 8 March,promoting empowerment and traditional handloom, features 1KM, 3KM, and 5KM walk categories, with participants encouraged to wear sarees, a special Saree Walkathon was organized for womens at Ghodbunder Road in Thane. During the event, womens participated wearing beautiful traditional sarees in various unique styles. Many of them showcased retro looks and traditional attire representing different Indian states while walking in the walkathon. Through this walkathon, women also conveyed several social messages promoting awareness and empowerment. After the walkathon, the participants celebrated the day with great joy and enthusiasm by taking selfies and enjoying the moment together, marking the celebration of WomenÕs Day in a lively spir ,in Thane ,in Mumbai, India, on, Sunday, March -08, 2026. ( Praful Gangurde / HT Photo)

The Ladki Bahin scheme which provides a monthly ₹1,500 to eligible women aged 21 to 65, will now provide a loan which can also be considered an advance on the monthly payments. The women will not have to repay the loan as it will be deducted from their monthly ₹1,500 under the scheme. A pilot programme has already been taken up and nearly 6,500 women have received interest free loans through the Coop Bank.

Chief minister Devendra Fadnavis said that they are encouraged by the early success of the programme and plan to expand it across the state. He was speaking at the ‘Nari Shakti Sangam: Gramin Mahila Netritva Parishad 2026’ held at Rambhau Mhalgi Prabodhini in Bhayander on Sunday.

Fadnavis said that the government has decided to use the Ladki Bahin scheme to empower women by linking it to several welfare schemes. “In a pilot programme, 6,500 women are receiving interest-free loans through the Mumbai Bank. Through this initiative, they are transitioning from being beneficiaries of a welfare programme to embarking on their journey as entrepreneurs,” he remarked.

In his 2026-2027 budget speech on Friday, Fadnavis also announced a new state initiative where the government plans to create malls dedicated to the sale of goods and products created by women’s self-help groups. Such malls will provide women with a chain of markets to sell their products.

In the first phase of the initiative, dedicated malls called ‘Umed’, meaning hope in Marathi, will be created in 13 districts. “To provide a rightful market for sale of goods and products of women’s self-help groups established under the Maharashtra State Rural Livelihood Mission (MSRLM), approval has been given to set up “Umed Mall-District Sales Centers” in 13 districts,” states the budget document.

“The dedicated malls are expected to function as permanent marketplaces where customers can buy affordable, high-quality goods produced by rural entrepreneurs,” Fadnavis said. He added, “Over time, Umed malls could grow strong enough to compete with large corporate retail chains and possibly even outperform them.”

Fadnavis said that the government doesn’t want to limit the Ladki Bahin scheme to just a monthly stipend, but instead aims to support women in building sustainable businesses and contributing to Maharashtra’s economy. Training in financial planning and investment management will also be provided to help these women grow their enterprises.