TREAD Scheme Explained: A Complete Guide for Women Entrepreneurs in 2026

Women-owned businesses have increasingly contributed to India’s MSME sector. Yet a significant number of women entrepreneurs still struggle with access to MSME financing from traditional unsecured business loans or other forms of financial aid. Lack of credit and inadequate training remain two of the biggest barriers to business expansion for women entrepreneurs. 

This is where the TREAD (Trade Related Entrepreneurship Assistance and Development) scheme becomes highly relevant. Designed to combine financial assistance with skill development, the scheme helps women move from informal business ideas to structured, sustainable enterprises.

Understanding the Trade Related Entrepreneurship Assistance and Development Scheme

TREAD scheme is a government initiative focused on enabling women entrepreneurs through a mix of trade-related training, business loans, and institutional handholding.

This scheme focuses on these three clear objectives:

• First, it aims to provide entrepreneurship training and skill development through recognised NGOs. 

• Second, it focuses on facilitating credit support e.g., unsecured business loans by linking women entrepreneurs with financial institutions. 

• Third, it encourages self-employment by supporting small-scale trade, manufacturing, and service businesses.

By addressing both capability and capital gaps, the scheme ensures that women receive funding and gain the skills needed to manage and grow their businesses responsibly.

What are the Benefits of the TREAD Scheme for Women?

The TREAD scheme for women is structured to reduce early-stage business risks while improving long-term sustainability. It does not operate as a standalone Business Loan programme but as an ecosystem-based support model. 

Here are some key benefits of the TREAD scheme:

1. Financial Assistance and Business Loan Support

This scheme provides a 30% government subsidy on the total cost of the approved business project. Banks finance the remaining 70% of the project cost, with recognised NGOs facilitating the Business Loan process.

This structure makes access to credit easier for women from economically weaker sections, as NGOs act as facilitators between banks and beneficiaries.

2. Skill Development and Training Programmes

Under this component, selected women beneficiaries receive a grant of up to ₹1 lakh to support training initiatives. Typically, each programme runs for one month, with a batch size of around 20 women per session. It ensures focused learning and practical engagement.

Institutions such as Entrepreneurship Development Institutes, MSME bodies, the National Institute of Small Industry Extension Training, and experienced NGOs deliver the training.

3. Support for State-Sponsored Institutions

This scheme also strengthens the ecosystem by supporting institutions that design and deliver entrepreneurship training. State government-sponsored institutions receive funding of up to ₹5 lakhs to develop specialised training modules tailored to women entrepreneurs.

Also Read: Mahila Udyam Nidhi Scheme: Eligibility Criteria, Features & Benefits

What are the Eligibility Criteria for the TREAD Scheme?

Understanding Trade Related Entrepreneurship Assistance or the TREAD scheme eligibility is a critical step before initiating the application process. While the scheme aims to be inclusive, it follows defined eligibility norms to ensure smooth implementation.

To be eligible, applicants generally need to meet the following conditions:

• The applicant must be a woman entrepreneur

• The enterprise should fall under the MSME classification

• The business must operate in trade, manufacturing, or service activities.

• A recognised NGO or implementing agency routes the application.

These criteria ensure that the scheme reaches genuine women-led enterprises with growth potential.

Also Read: 6 Best Business Loan Schemes for Women Entrepreneurs in India

What Are The Documents Required for the TREAD Scheme?

Proper documentation plays a vital role in ensuring smooth processing under the TREAD scheme. Here is a detailed guide to the required documents for the scheme:

• Proof of identity such as Aadhaar card, driving licence, voter ID, or PAN card.

• Proof of address, such as utility bills, passport, or Aadhaar card.

• Business registration or proof of enterprise activity.

• Audited account records for the past 3 years.

• Bank account details linked to the business.

Having these documents ready not only speeds up approval under the scheme but also strengthens the entrepreneur’s profile when approaching lenders for additional funding.

How to Apply for the TREAD Scheme?

Here is a detailed step-by-step guide on the application process of the Trade Related Entrepreneurship Assistance or the TREAD scheme:

• Visit a government-recognised NGO or implementing institution

• Submit the application along with the required documentation

• Participate in mandatory training or orientation programmes

• Wait for the approval after verification

Once approval is secured, funds are released as per the scheme guidelines. At this stage, many entrepreneurs reassess their broader financial needs. 

To Conclude

Trade Related Entrepreneurship Assistance, or the TREAD scheme, provides a strong starting point for women entrepreneurs looking to enter or stabilise their presence in the MSME sector. However, as businesses grow, financial requirements often extend beyond initial support. 

Combining government-backed initiatives with a well-planned Business Loan from Poonawalla Fincorp can help entrepreneurs manage cash flows, invest in expansion, and build resilient enterprises with confidence.

FAQs

What is the TREAD scheme's full form?

The full form of TREAD is Trade Related Entrepreneurship Assistance and Development. The scheme is specifically designed to encourage women entrepreneurship by combining financial assistance with structured training and counselling.

Who implements the TREAD scheme in India?

This scheme is implemented under the guidance of the Ministry of MSME. The ministry works closely with recognised NGOs, financial institutions, and training organisations to ensure effective execution.

Is the TREAD scheme only for new businesses?

No, this scheme is not only for new businesses. Existing women-led MSMEs can also benefit from the scheme, provided they meet the prescribed eligibility criteria. This makes this scheme useful not only for aspiring entrepreneurs but also for women who are already running small businesses and want to stabilise operations or improve business capabilities.

Does the scheme support all business sectors?

This scheme primarily supports businesses engaged in trade, manufacturing, and service activities that fall under the MSME category.

Is training compulsory under the TREAD scheme?

In most cases, yes. Training is a core component of the TREAD scheme and is considered essential for ensuring business preparedness. The training programmes focus on entrepreneurship development, financial awareness, and operational planning.