In the vibrant landscape of India, the surge of women entrepreneurs not only mirrors a progressive society but also propels a thriving economy.
The current socioeconomic fabric of India provides an enabling environment for aspiring entrepreneurs, especially women.
Recognizing the need for inclusivity in the business sector, the Central Government of India has introduced a women business loans to empower women entrepreneurs.
1. Empowering with Mudra Loans
The Micro Units Development & Refinancing Agency (MUDRA) loan scheme, part of the Pradhan Mantri Mudra Yojana (PMMY), stands out as a beacon for women entrepreneurs.
These small business loans offer attractive interest rates, flexible repayment tenures, and refinancing support.
The PMMY MUDRA scheme acts as a financial catalyst for women-led initiatives, facilitating informal finance from major banks, NBFCs, and last-mile financiers.
Loan Categories:
- Shishu Loan: Below Rs. 50000
- Kishor Loan: Between Rs. 50000 and Rs. 5 lakhs
- Tarun Loan: Rs. 5 lakhs to Rs. 10 lakhs
2. Annapurna Scheme: Cultivating Growth
Designed for female entrepreneurs in catering and agriculture, the Annapurna business loan scheme offers collateral-free loans up to Rs. 50000.
This micro-credit initiative supports the purchase of equipment, utensils, containers, agricultural instruments, and more.
With a repayment tenure of 36 months, this scheme, offered by the State Bank of Mysore and the Bharatiya Mahila Bank, allows borrowers a grace period in the first month post-approval.
3. Stree Shakti Yojana: SBI’s Support
The State Bank of India’s Stree Shakti Yojana extends credit facilities of up to Rs. 5 lakhs to self-employed women and female-led enterprises.
With concessions like no security for loans up to Rs. 5 lakhs and a 0.05% interest rate discount for loans above Rs. 2 lakhs, this scheme is available across all State Bank branches.
However, eligibility hinges on majority ownership and registration with the state’s Entrepreneurship Development Programmes.
4. Dena Shakti Scheme: Diversified Support
Tailored for women entrepreneurs in agriculture, manufacturing, micro-credit, retail, and small-scale industries, the Dena Shakti Scheme offers business loan amounts up to Rs. 20 lakhs with a 0.25% interest rate concession.
While applicable to medium and small enterprises, it also provides microcredit loans up to Rs. 50000.
5. Bharatiya Mahila Bank Business Loan: Fusion of Support
Resulting from the merger with the State Bank of India, the Bharatiya Mahila Bank introduced this business loan scheme for women in the MSME and micro-credit sectors. Ideal for working capital, equipment purchase, and expansion, the scheme offers interest rates starting from 10.5%.
The loan amounts vary across sectors, reaching up to Rs. 20 crores, with no need for collateral security for loans up to Rs. 1 crore.
Key Features:
- Shringaar: Collateral-free financing for homemakers and female owners of small businesses
- Parvarish: Loans for setting up daycare facilities, with CGTMSE coverage
- Annapurna: Support for women entrepreneurs in the food and catering industry, offering loans up to Rs. 5 crores without collateral security
6. Mahila Udyam Nidhi Yojana: PNB’s Proposition
Introduced by the Punjab National Bank and SIDBI, the Mahila Udyam Nidhi Scheme is a well-structured and flexible business loan scheme.
It provides quick and hassle-free financing up to Rs. 10 lakhs for women entrepreneurs across various business domains.
The maximum repayment tenure is 10 years, with interest rates determined by current market rates.
7. Orient Mahila Vikas Yojana Scheme: OBC’s Outreach
The Oriental Bank of Commerce’s Orient Mahila Vikas Yojana Scheme caters to women entrepreneurs with over 50% equity capital in a proprietorship or joint venture.
Offering loans between Rs. 10 lakhs and Rs. 25 lakhs with minimal documentation and a 2% interest rate concession, the scheme provides a repayment period of seven years.
8. Cent Kalyani Scheme: Central Bank’s Support
Tailored for women entrepreneurs in cottage, farming, trade, retail, and MSME sectors, the Cent Kalyani Scheme serves as seed funding for startups.
With collateral-free financial support, zero processing fees, no need for guarantors, CGTMSE coverage, and options like line of credit, overdraft, term loans, and working capital loans, it offers a maximum amount of Rs 1 crore at interest rates ranging between 7.35% to 8%.
9. Udyogini Scheme: Promoting Inclusivity
Developed by the Women Development Corporation of the Government of India, the Udyogini Scheme encourages women entrepreneurs from backward classes and illiterate backgrounds.
Providing mentorship, upskilling programs, and financial support to ventures in cottage industries, retail stores, and retail trading in rural regions, it follows certain eligibility criteria.
Conclusion
In conclusion, women business loans in India provide the way for empowerment and success in the entrepreneurial landscape. By providing tailored financial solutions, these loans enable women to fuel their dreams and drive business prosperity. With accessible funding options, the journey towards business success becomes not just a possibility but a tangible reality. Embrace the opportunities, seize the moment, and let women-led enterprises flourish in the dynamic business ecosystem of India.