There are a mushroom of start-ups in India that fuel the growth of the economy. Compared to men, women entrepreneurs are fewer, and this is because they may not get financial support from their homes when they want to start a business. In order to help confident, passionate, and ambitious women embark on their entrepreneurship journey, public sector banks, private sector banks, and a number of financial institutions have come up with various business loan schemes for women entrepreneurs in India. Let us read on to find out about the top 10 in the list.
Stree Shakti Package
It is a scheme promoted by the State Bank of India. Those ventures that are defined as women entrepreneur businesses under the MSME Department of India will be eligible for this loan. Also, women who are professionals (doctors, lawyers, architectes, beauticians, etc.) can avail loans under the Stree Shakti package. Some of the features of Stree Shakti Package are as follows:
- A maximum loan amount of Rs. 50 Lakhs
- 0.50% below the base rate – 11.20% onwards (p.a.) if the loan amount is above Rs. 2 Lakh. Else according to the base rate of the bank
- Repayment period varies as per the loan amount and other parameters. The maximum duration of the loan is for 36 months.
- No collateral required
This scheme is uniquely designed for women who wish to set up food catering units. This loan can be availed to buy the essential raw materials, kitchen requirements, gas connections etc. The State Bank of Mysore gives this loan to women entrepreneurs. Some of the features of Annapurna are as follows:
- Age of applicant should be minimum 18 years to maximum 60 years.
- Loans up to Rs. 50,000
- The loan can be repaid in monthly installments of 36 months.
- One month moratorium period
- Collateral free and to be covered under CGTMSE
This business loan scheme for women, which was launched by the Central Bank of India, enables them to start a new venture or develop the existing business. This loan is given to meet the day to day costs and also to meet the capital expenditures of plant/machinery. Some of the features of Cent Kalyani are as follows:
- A loan amount of up to 100 Lakhs
- An interest rate of 7.40% onwards
- No collateral or third party guarantee required
- The processing fee is Nil.
- The loan tenure is from 1 to 7 years.
- Applicants should be 18 and above
Dena Shakti is a scheme designed by Dena Bank to help women entrepreneurs get business loans in a free and easy manner. Loans are given for housing, agriculture and related activities, education, retail trade, micro and small enterprises (direct and indirect finance) under this scheme. Some of the features of Dena Shakti are as follows:
- The loan amounts for small scale industries has been increased up to Rs. 50 Lakhs.
- Margin is Nil up to Rs. 25,000 and 15% – 25% above Rs. 25,000.
SIDBI Mahila Udyam Nidhi
The Mahila Udyam Nidhi Scheme was launched by SIDBI to grant loans to women entrepreneurs who have started tiny units, MSMEs, SSIs etc. Some of the features of Mahila Udyam Nidhi are as follows:
- Female entrepreneurs can avail loans up to Rs. 10 Lakhs to launch their own business or small scale enterprise.
- Different banks will charge different interest rates
- The upper limit on loan repayment period under this scheme is 10 years with a moratorium period of up to 5 years.
This scheme provides financial aid to poor women for doing business and encourages entrepreneurship among them. It thus contributes to the overall economic growth by increasing the income and living standards of families. It has been launched by the government. Some of the features of Udyogini are as follows:
- Loan amount of up to Rs. 3 Lakhs
- The interest rates are subsidized or it is interest free in special cases. Otherwise it is on par with industry standards.
- Collateral is not required, and the processing fee is Nil.
Bharatiya Mahila Bank
BMB provides financial services and growth opportunities to develop business ventures owned by women across India. The features of BMB are as follows:
- The maximum loan given will be Rs. 20 crores.
- The interest rate is usually 10.15% or more.
Pradhan Mantri Rozgar Yojana
It focuses on equipping women with self-employment opportunities and covers all the entrepreneurship opportunities available including agriculture. This scheme is beneficial to women from all businesses, industries and services.The features of Pradhan Mantri Rozgar Yojana are as follows:
- Loans are given up to 2 lakhs in the business sector
- The upper loan limit for the services and industry based startups and companies is 5 Lakhs
Mudra Yojana Business Loan Scheme for Women Entrepreneurs
The Mudra Yojana Scheme was initiated under the Pradhan Mantri Rozgar Yojana to fund SMEs and MSMEs. The Loans have a flexible repayment duration, low interest rate, and zero collateral. Some of the features of the Mudra Yojana Scheme are as follows:
- The maximum loan amount given to businesswomen under the Mudra Yojana Scheme is 10 Lakhs.
- At the present, Mudra extends a concession of 25 Basis Points in the interest rates offered from NBFCs and MFIs to women entrepreneurs.
Oriental Mahila Vikas Yojana Scheme
The Oriental Bank of Commerce provides loans to women who singly or co-own a business and hold 51% share capital. Some of the features of the Oriental Mahila Vikas Yojana Scheme are as follows:
- Loans range from Rs. 10 Lakhs to Rs. 25 Lakhs.
- Repayment tenure is 7 years.
- 2% concession is given in the interest rate.
What are the top 10 business loan schemes available in India specifically designed for women entrepreneurs?
- Stand-Up India Scheme
- Annapurna Scheme
- Mahila Udyam Nidhi Scheme
- Mudra Yojana Scheme
- Stree Shakti Package Scheme
- Udyogini Scheme
- Cent Kalyani Scheme
- Bharatiya Mahila Bank Business Loan Scheme
- Dena Shakti Scheme
- Udyogini Scheme by Punjab and Sind Bank
What are the eligibility criteria for availing these business loan schemes for women entrepreneurs in India?
The eligibility criteria may vary depending on the specific scheme, but generally, the following criteria apply:
- The applicant should be an Indian citizen.
- The applicant must be a woman entrepreneur or a woman-led enterprise.
- The minimum age requirement is usually 18 years, and the maximum age limit can vary.
- The enterprise seeking the loan should be in a permissible sector or industry.
- The applicant should have a well-defined business plan and financial projections.
What documents are typically required to apply for these business loan schemes for women entrepreneurs in India?
While the document requirements can vary based on the specific scheme and the lending institution, the following documents are commonly required:
- Identity proof (Aadhaar card, PAN card, passport, etc.)
- Address proof (utility bills, rent agreement, etc.)
- Proof of business existence (registration certificates, licenses, etc.)
- Business plan and financial projections
- Bank statements of the business for a specified period
- Income tax returns (ITR) of the applicant and the enterprise
- Project report detailing the loan utilization plan
It’s important to note that the details provided in these FAQs are general in nature, and it is advisable to refer to the specific scheme’s official guidelines or consult with the respective lending institutions for accurate and up-to-date information.
Women entrepreneurs can now start business ventures easily by using the financial assistance provided by various business loan schemes. The ten schemes discussed above can help them deal with their financial exigencies and establish successful businesses.