Women entrepreneurs are playing a vital role in the economic development of the country. They are creating employment opportunities, generating income, and contributing to the social welfare of the society. However, they often face challenges in accessing finance for their business ventures, due to various factors such as lack of collateral, gender bias, low credit history, etc. To overcome these barriers, the government and various banks have launched several schemes for business loans for women in India.
These schemes aim to provide financial assistance, training, mentoring, and other support to women who want to start or expand their businesses.
Annapurna Scheme
The Annapurna Scheme is offered by the State Bank of Mysore, in collaboration with the Small Industries Development Bank of India (SIDBI). It is designed to provide MSME loans for women who are engaged in the food and catering sector. The loan amount can be up to Rs. 50,000, with a repayment period of 36 months. The interest rate is based on the prevailing market rate, and the borrower has to provide a guarantor for the loan. The scheme also provides a moratorium period of one month, during which no interest is charged. The loan can be used to purchase kitchen equipment, utensils, raw materials, etc. for the business.
Udyogini Scheme
The Udyogini Scheme is offered by the Punjab and Sind Bank, for small business loans for women to set up small-scale enterprises in various sectors such as agriculture, retail, manufacturing, etc. The loan amount can be up to Rs. 1 lakh, with a repayment period of 5 years. The interest rate is concessional, and the borrower does not have to provide any collateral or guarantor for the loan. The scheme also provides a subsidy of 30% of the project cost, subject to a maximum of Rs. 10,000, for women belonging to the SC/ST category, or below the poverty line. The loan can be used to purchase machinery, equipment, raw materials, etc. for the business.
Stree Shakti Package for Women Entrepreneurs
The Stree Shakti Package for Women Entrepreneurs is offered by the State Bank of India, to empower women entrepreneurs to start or expand their businesses. The loan amount can be up to Rs. 25 lakhs, with a repayment period of 7 years. The interest rate is 0.5% lower than the prevailing market rate, and the borrower does not have to pay any processing fee for the loan. The scheme also provides a margin of 5% for loans above Rs. 10,000, and a margin of 10% for loans above Rs. 25,000. The loan can be used for any business activity, except for retail trade, educational institutions, and self-help groups.
Bharatiya Mahila Bank Business Loan
The Bharatiya Mahila Bank Business Loan is offered by the Bharatiya Mahila Bank, which is the first women’s bank in India. It is aimed at providing financial support to women entrepreneurs who are engaged in various sectors such as manufacturing, trading, services, etc. The loan amount can be up to Rs. 20 crores, with a repayment period of 7 years. The interest rate is based on the credit rating of the borrower, and the borrower has to provide collateral or guarantor for the loan. The scheme also provides a concession of 0.25% on the interest rate for women entrepreneurs who have a 51% or more stake in the business. The loan can be used for any business purpose, such as working capital, term loan, project finance, etc.
Cent Kalyani Scheme
The Cent Kalyani Scheme is offered by the Central Bank of India, to support women entrepreneurs who are engaged in the micro, small and medium enterprises (MSME) sector. The loan amount can be up to Rs. 100 lakhs, with a repayment period of 7 years. The interest rate is based on the base rate of the bank, and the borrower does not have to provide any collateral or guarantor for the loan. The scheme also provides a waiver of processing fee and margin for the loan. The loan app can be used for any business activity, such as manufacturing, trading, services, etc.
Mudra Yojana Scheme for Women
The Mudra Yojana Scheme for Women is offered by the Pradhan Mantri Mudra Yojana (PMMY), which is a flagship scheme of the government to provide loans to the non-corporate, non-farm sector. The loan amount can be up to Rs. 10 lakhs, with a repayment period of 5 years. The interest rate is based on the lender’s discretion, and the borrower does not have to provide any collateral or guarantor for the loan. The scheme also provides a subsidy of 25% of the project cost, subject to a maximum of Rs. 10,000, for women entrepreneurs who are from the SC/ST category, or below the poverty line. The loan can be used for any business activity, such as manufacturing, trading, services, etc.
Dena Shakti Scheme
The Dena Shakti Scheme is offered by the Dena Bank, to provide loans to women entrepreneurs who are engaged in various sectors such as agriculture, retail, manufacturing, etc. The loan amount can be up to Rs. 20 lakhs, with a repayment period of 10 years. The interest rate is 0.25% lower than the prevailing market rate, and the borrower has to provide collateral or guarantor for the loan. The scheme also provides a margin of 10% for loans above Rs. 10,000, and a margin of 15% for loans above Rs. 25,000. The loan can be used for any business purpose, such as working capital, term loan, project finance, etc.
These are some of the schemes for business loans for women in India, that can help them to start or expand their businesses. Women entrepreneurs can avail these schemes from various banks and financial institutions, by fulfilling the eligibility criteria and submitting the required documents. These schemes can provide them with the necessary financial support, training, mentoring, and other benefits, to make their businesses successful and profitable.
