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TREAD — Women Entrepreneurship Grants

TREAD Scheme 2026 — Trade Related Entrepreneurship Assistance & Development for Women: 30% Grant on ₹30 Lakh Loan | msme.gov.in

2026 ✓Women30% government grant on loan (reducing repayment burden by 30%) + Loan amount up to ₹30 lakh through NGO channel + Training and counseling support + Covers any income-generating activityLaunched: 1998Updated: May 2026
2 min read
Reviewed by Sanket Ghogare, Editor · Last verified: 25 May 2026

TREAD — Women Entrepreneurship Grants — Quick Overview

Scheme NameTREAD Scheme 2026 — Trade Related Entrepreneurship Assistance & Development for Women: 30% Grant on ₹30 Lakh Loan | msme.gov.in
Launched ByGovernment of India
Launch Year1998
Benefit30% government grant on loan (reducing repayment burden by 30%) + Loan amount up to ₹30 lakh through NGO channel + Training and counseling support + Covers any income-generating activity
CategoryWomen
Last Verified25 May 2026
Official Portalhttps://msme.gov.in

What is TREAD — Women Entrepreneurship Grants?

TREAD (Trade Related Entrepreneurship Assistance and Development) is a Ministry of MSME scheme specifically designed to empower women from rural and semi-urban areas to start income-generating activities and micro-enterprises. The scheme provides a 30% grant on loans given to women through NGOs: Loan amount range: Up to ₹30 lakh to a group of women / NGO for lending to individual women members. Government pays 30% grant directly to the lending institution (NABARD/SIDBI/other lending agencies), reducing the loan principal. The remaining 70% is lent to women at subsidized rates. Activities covered: Any legitimate income-generating activities — handicrafts, small manufacturing, services, food processing, horticulture, animal husbandry, etc. NGO plays a crucial role: identifies women beneficiaries, trains them, ensures proper utilization, and provides credit guarantee. An integrated non-formal training and counselling component is also funded.

Under this scheme, eligible beneficiaries receive 30% government grant on loan (reducing repayment burden by 30%) + Loan amount up to ₹30 lakh through NGO channel + Training and counseling support + Covers any income-generating activity. The scheme was launched in 1998 and is implemented by the Government of India.

Benefits of TREAD — Women Entrepreneurship Grants

30% government grant on loan (reducing repayment burden by 30%) + Loan amount up to ₹30 lakh through NGO channel + Training and counseling support + Covers any income-generating activity

Who is Eligible for TREAD — Women Entrepreneurship Grants?

  • Women from rural/semi-urban areas wanting to start income-generating activities
  • Women organized into groups through NGOs (individual applications are NOT eligible — must be through NGO)
  • NGO must be registered and have at least 3 years of experience in women development programmes
  • No income bar — priority to BPL women
  • Women of all ages (no strict age limit)
  • Activity must be legitimate income-generating (no luxury goods, alcohol, tobacco production)

Documents Required for TREAD — Women Entrepreneurship Grants

0/4 documents ready

How to Apply for TREAD — Women Entrepreneurship Grants Online?

  1. 1Women should contact their nearest MSME registered NGO or women's SHG network
  2. 2NGO prepares project proposal covering: group of women, activity, loan amount needed, training plan
  3. 3NGO submits application to SIDBI/NABARD/state scheduled commercial bank empanelled for TREAD
  4. 4Lending institution appraises project → forwards 30% grant claim to DC-MSME office
  5. 5Grant approved → 30% deposited with lending institution → 70% lent to women group through NGO
  6. 6Training component: DC-MSME provides non-formal training through its field institutes (MSME-TIs)
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Official Government Portal

Apply directly on the official government website. This is the only authorised portal — never pay anyone to apply on your behalf.

🔗Apply on msme.gov.in
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Frequently Asked Questions — TREAD — Women Entrepreneurship Grants

Example: NGO applies for ₹10 lakh to lend to 50 women (₹20,000 each). Government pays 30% = ₹3 lakh as GRANT directly to the bank/lending institution — this reduces the loan principal. Bank lends the remaining 70% = ₹7 lakh at normal rates. So the 50 women effectively share only ₹7 lakh (not ₹10 lakh) of repayment burden. The 30% grant is a permanent subsidy — women never repay that portion. This significantly reduces EMI and makes the loan affordable for low-income women.

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