5 Best Business Loan Schemes for Women Entrepreneurs

Today’s female entrepreneurs have found success in previously uncharted territories in the food, cosmetics, tourism, sanitation, IT, automotive, and even innovative industries. According to World Bank projections, if half of India’s workforce is made up of women, the country’s GDP may increase by 1.5% points.

The Indian government has also taken action by launching lending programs specifically for women. These programs for female entrepreneurs will be very beneficial in helping them secure the funding needed to launch their businesses. Let’s examine every government program available to female entrepreneurs.

Women Loan Schemes

Below we have provided a list of government schemes for women entrepreneurs:

  • Mudra Loan for Women
  • Annapurna Scheme
  • Stree Shakti Yojana
  • Dena Shakti Scheme
  • Bhartiya Mahila Bank Business Loan
  • Mahila Udyam Nidhi Yojana
  • Orient Mahila Vikas Yojana Scheme
  • Cent Kalyani Scheme
  • Udyogini Scheme
  • Pradhan Mantri Rozgar Yojana
  • Synd Mahila Shakti Scheme

1. Mudra Loan for Women

The government established Mudra Lending for Women as a woman-only lending program to provide financial assistance to driven female business owners. They want for a business plan to launch a beauty salon, tutoring facility, needlework store, etc. Collateral is not needed under this strategy to provide a loan. On the other hand, a Mudra loan application may be submitted under certain headings. They are listed in the following order:

  • Shishu Loan: In the first phase, firms can only get a maximum loan sum of Rs. 50,000.
  • Kishor Loan: This loan is intended for established companies who want to enhance their offerings. The loan amount provided is between Rs. 50,000 and Rs. 5 lakhs.
  • Tarun Loan: This loan, which can be used for up to Rs. 10 lakh, is intended for well-established companies that lack money yet want to grow.

2. Annapurna Scheme

One of the several government programs for women is the Annapurna Yojana. Under this, the Indian government provides loans up to Rs. 50,000 to women entrepreneurs operating food catering firms. The money borrowed might be used to cover the cost of working capital requirements, such as purchasing a working table, mixer/grinder, hot case, tiffin boxes, and utensils.

The lender is exempt from paying the first month’s EMI after the loan is granted. The money must be reimbursed in 36 monthly installments after it has been approved. The market rate and the relevant bank are taken into consideration when calculating the interest rate.

3. Stree Shakti Yojana

One special government program for women that encourages entrepreneurship by offering specific advantages is called the Stree Shakti package. Women who control the majority of the company are eligible for this woman financing program. Enrollment in the Entrepreneurship Development Programme (EDP), run by the relevant governmental authorities, is an additional prerequisite for these female entrepreneurs. Women are eligible for an interest rate reduction of 0.05% on loans above Rs. 2 lakh via the Stree Shakti initiative.

4. Dena Shakti Scheme

Loans up to Rs. 20 lakh are available under the Dena Shakti Scheme for women entrepreneurs operating small businesses, retail outlets, microcredit, manufacturing, and agriculture. Additionally, a 0.25 percent interest rate reduction is offered under this government program for women. In addition, under the microcredit category, women entrepreneurs are eligible for up to a Rs. 50,000 loan.

5. Bhartiya Mahila Bank Business Loan

This public sector banking organization, The Bhartiya Mahila Bank (BMB), administers credit programs for female entrepreneurs up to Rs. 20 crores for working capital needs, business expansion, or industrial ventures. This lady loan scheme offers a variety of schemes, some of which are as follows:

Shringaar: Women who work for themselves and are homemakers are eligible for the BMB Shringaar loan, which can be used for startup costs or ongoing company expenditures. You are not required to furnish any collateral security for the loan.

Parvarish: In a similar vein, homemakers or independent contractors can establish daycare centers with the help of the BMB Parvarish loan. With no collateral security, the maximum loan amount under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGSTSM) plan is Rs. 1 crore.

6. Mahila Udyam Nidhi Yojana

Punjab National Bank and the Small Industries Development Bank of India (SIDBI) together provide the Mahila Udyam Nidhi Scheme, one of the most well-liked government initiatives for female entrepreneurs. Under the plan, women entrepreneurs can get up to Rs. 10 lakh in loans that must be returned within ten years, to help them launch new small businesses. The market rates determine the interest rate that is charged.

7. Orient Mahila Vikas Yojana Scheme

The program was started by the Oriental Bank of Commerce, and women who hold individually or jointly 51% of the share capital of a proprietary firm are eligible to apply for loans under the Orient Mahila Vikas Yojana. For loans ranging from Rs. 10 lakhs to Rs. 25 lakhs, collateral is needed. The loan has a seven-year payback period. Additionally, the Orient Mahila Vikas Yojana Scheme offers a 2 percent loan rate reduction.

8. Cent Kalyani Scheme

Women who work for themselves or as freelancers can apply for the Cent Kalyani Yojana, a government program for women. The Cent Kalyani Scheme is open to micro/small businesses, including retail commerce, cottage industries, farming, and agriculture. For this loan, you are not required to offer any collateral as security or find any guarantors. Loan interest rates are determined by market rates. The maximum loan payback period is going to be seven years.

9. Udyogini Scheme

Under the auspices of the Indian government, the Udyogini Scheme has been administered by the Women Development Corporation. This program encourages and supports women entrepreneurs among the impoverished by giving them financial support. This program primarily assists and supports illiterate women who reside in rural and underdeveloped areas.

10. Pradhan Mantri Rozgar Yojana

One of the several government programs for women, the Pradhan Mantri Rozgar Yojana (PMRY), aims to give the nation’s educated youth the chance to work for themselves. The program, which was started in 1993, gives jobless Indian youngsters a loan amount to start their business enterprise and ultimately open up job opportunities for others.

Manufacturing, commerce, services, and other recognized business sectors are just a handful for which the government initiative offers financial support. You are eligible to apply for a loan up to Rs. 1 lakh without having to present any collateral. Repayment terms for the loan vary from three to seven years.

11. Synd Mahila Shakti Scheme

Syndicate Bank has launched the “Synd Mahila Shakthi Scheme” in an effort to encourage the growth of women-owned businesses. Through its loan facilities, the bank provides financial support to women professionals and entrepreneurs operating small businesses, engaging in retail trade, or working for themselves.

This government program for women aims to empower women economically by providing business loans to assist their needs for operating capital or company development. With a concessional interest rate, you may start a new business or modernize an existing one by obtaining a loan up to Rs. 5 crore.

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