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
Mudra Yojana is one of the popular schemes of the central government dedicated to women which aims to start small businesses like beauty salons, educational centres and sewing units. Once the loan is approved, you will receive Mudra cards which are very similar to credit cards. You can withdraw money via these credit cards. You can avail loans between Rs. 50,000 and Rs. 5 Lakh. The need for collateral only arises if the loan amount exceeds Rs. 10 Lakh.
There are three plans under the plan: The Shishu plan with loans of up to Rs 50,000 for new businesses; Kishore plan with loans between Rs 50,000 and Rs 5 lakh for well-established companies and Tarun Plan for loans between Rs 5 lakh and Rs 10 lakh for business expansion.
8. Orient Mahila Vikas Yojana Program:
This scheme is launched by Oriental Bank of Commerce(OBC), Orient Mahila Vikas Yojana offers loans to women to start a business on their property. women, who hold a 51% share capital individually or jointly in of their property, are eligible for the loan. It is an unsecured loan between Rs. 10 to 25 lakhs. The loan must be repaid within 7 years.
These innovative programs introduced by the central government must be popularized. Knowing about this financial aid and these schemes will help women entrepreneurs to start their business with confidence.
- 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.