Tamil Nadu Backs Women-Led Firms with Up to Rs 5 Cr Finance

By: Women Entrepreneurs Review Team | Monday, 28 September 2026

As a new funding source introduced by Tamil Nadu government, the scheme ‘Vetri Magalir Thozhilmunaivor Membattu Thittam’ is offering institutional funding of Rs 10 lakh to Rs 5 crore in order to provide more formal funding to women entrepreneurs who wish to grow their ventures.

As a part of the initial process, the government has requested MLAs from 234 assembly constituencies to nominate 10 potential women entrepreneurs each, bringing the total to 2,340 applicants at least in the beginning stage of the process. The applicants qualified for this scheme can acquire loan at the annual interest rate of 9.95 percent on diminishing balance through the Tamil Nadu Industrial Investment Corporation (TIIC).

Key Highlights:

• Women entrepreneurs can access institutional loans ranging from Rs 10 lakh to Rs 5 crore
• MLAs will identify 10 prospective women entrepreneurs per constituency
• Existing women-led businesses can also seek finance for expansion

The repayment period will be nine years allowing women entrepreneurs get more flexibility regarding the management of cash flow and repayment of loans.

This program aims at providing financial assistance to women and the development of women’s enterprises in Tamil Nadu by the combination of institutional credit and grassroots level identification of potential women entrepreneurs.

The profiles of chosen applicants will be forwarded to the Industries Department for the detailed evaluation of their qualifications and other aspects according to the specified criteria. The identification procedure is aimed at increasing the pipeline and diversity of female business owners, since the program should not be confined only to large cities and industrial areas.

Nevertheless, nomination by an MLA does not mean that a female entrepreneur will receive credit immediately. All candidates will then further be subject to set procedures of evaluation and screening. S. Keerthana, Minister for Industries and Investment Promotion emphasized the need for overcoming capital limitations faced by many women when transforming ideas into businesses.

“There are thousands of women across Tamil Nadu with the ambition, ability, and determination to build their own enterprises, but access to capital can often be the barrier between an idea and a business. The Vetri Magalir Thozhilmunaivor Membattu Thittam is designed to help bridge that gap,” the minister said.

Women entrepreneurs often have the drive, talent and necessary skills to start their own businesses, but find it difficult to gain access to necessary funding to turn those dreams into reality, S. Keerthana stated in her press statement.

This program aims to accomplish more than just lending money to people, the minister pointed out. Its aim is to provide women a proper way to enter the world of entrepreneurship and help establish sustainable business models to create employment opportunities in the state of Tamil Nadu, thus contributing to its overall economic growth.

This initiative is also open to existing women-led enterprises requiring finances for expansion purposes. The amount of finance provided to each individual selected will be dependent on the viability of the proposal, the eligibility criteria, and loan assessment. There has been no deadline provided by the government for MLA’s to forward names of proposed candidates.