7 Business Loan Schemes For Women Entrepreneurs in India

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Increased focused on 'women power' has encouraged a lot of women to establish and run businesses in India. Female entrepreneurs in India can now have the option to avail loans from multiple reputed banks at very low-interest rates. Some also come with zero collateral requirements. Scroll through to find out the seven schemes you can avail to start your dream business.

1. Annapurna Scheme

This scheme is directed towards women wanting to or running small-scale food catering business like tiffin service, packed snacks, etc. Provided by State Bank of Mysore, it is a composite loan with a maximum loan amount of Rs. 50,000 that one can repay in 36-month installments. You could use this money as working capital to buy necessary kitchen equipment for the business.
The loan has a moratorium period (EMI free period) of one month. It requires a guarantor and assets of the business as collateral. The interest rate applicable is as per market rate.

2. Udyogini Scheme

Provided by Punjab and Sind Bank, this loan can be used for small-scale businesses, retail businesses, and agricultural activities. The terms are flexible, and has interest rate concessions. The maximum amount of loan availed by women falling between the age group of 18 to 45 years is Rs. 1 lakh. Note that your family income is taken into consideration while applying for the loan.

3. Stree Shakti Package

Promoted by SBI, this package can be availed by any enterprise that has over 50% of its share in capital owned by women. The interest rate will be lowered by 0.5% if the loan amount exceeds Rs. 2 lakhs. No security (collateral) is required for loans up to five lakhs in the case of tiny sector units. Concessions and margins of the loan vary for every category of business.

4. Dena Shakti Scheme

A Dena Bank Scheme, applicable to activities related to agriculture, small enterprises, retail trade, microcredit, educational and housing is aimed at financing women entrepreneurs. The maximum limit and interest rate varies depending on the category. For example, priority sector like education or retail can avail a loan up to Rs. 20 lakhs with interest rate lowered by 0.25%.

5. Mahila Udyam Nidhi Scheme

Targeted at tiny and small-scale industries run by women, this scheme can be availed for setting up a new business or rehabilitating sick SSI units. Existing small-scale businesses looking to upgrade or modernize their business can also apply. Punjab National Bank provides this scheme.

6. Cent Kalyani Scheme

This Central Bank of India scheme is targeted at micro or small-scale businesses engaged in manufacturing and service industry. Handicraft makers, tailors, doctors, beauty parlors, garment making, transport businesses, etc. can apply. This scheme is not applicable to retail trade, educational training institutes or self-help groups. The loan can be used to meet capital expenditure like machinery and equipment and working day to day expenses. A maximum of Rs. 100 lakhs can be applied for at a margin of 20%.

7. Mudra Yojana Scheme for Women

Launched by the government of India, individual women as well as a group of women can avail this facility for small ventures like beauty parlors, tailoring unit, tuition centers, etc. The loan is collateral free. On applying for it, the eligible applicant will be verified. On verification, the female applicant will receive a Mudra Card which can be used to buy required material for their business. Schemes are categorized as Shishu, Kishor and Tarun depending on the nature and state of the business. This scheme has been popular among non-urban women population.

Additional points:

  • Almost every reputed bank in India has customised schemes for women which not only aid businesses but personal expenses too.
  • Educational loans for girls is set at a rate of 1.5% when compared to 2% for the male population.
  • Indian banks also conduct CSR activities like constructing toilets in rural India for women.

Read more about: women, loan, india
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