Tue. Jan 31st, 2023
    Business Loan

    According to the Ministry of Statistics and Program Implementation, there are over 8 million women entrepreneurs in India. And by 2030 there will be 30 million enterprises that would be entirely owned by women entrepreneurs. These enterprises will create well over 170 million new jobs in India. 

    This figure tells you how much women entrepreneurs contribute to our economy. We as a country need to tap into this opportunity by motivating more women to become entrepreneurs.

    One way to motivate women across the country is by offering them business loans at lower interest rates. In this article, we have jotted down a list of 10 such business loan schemes for women entrepreneurs in India. 

    Here are they …   

    Mudra Loan For Women

    The Mudra Loan scheme is one of the best business loan schemes for women in India. The best thing about this loan is women don’t require any collateral to get the loan. 

    Women who want to start small businesses like stitching shops, beauty parlors, bakeries, etc can apply for this loan. There are 3 different categories under which Mudra Loan can be applied. 

    1. Shishu Loan – This loan is for starting a new business. The maximum loan amount is Rs 50,000
    2. Kishor Loan – This loan is for established businesses. The loan amount is Rs 50,000 to Rs 500,000 
    3. Traun Loan – For well-established businesses. The loan amount is Rs 10,000,00   

    Interest rates depend upon business requirements. 

    Stree Shakti Yojana for Women Entrepreneurs

    The second best loan scheme on our list is the Stree Shakti package. The maximum loan that women can avail of is Rs 50 Lakhs. To be eligible for this loan, women need to hold 51% or more ownership of a business.

    Stree Shakti scheme is for women entrepreneurs who want to do something big. For example, if you want to start a restaurant or an automobile showroom, or a gas agency dealership then women can apply for this scheme. 

    Moreover, if you are applying for a loan for less than Rs 10 Lakhs then you don’t require any collateral, otherwise, you require collateral. 

    The interest rate is .25% for women applicants who are majority stakeholders in the company. 

    Orient Mahila Vikas Scheme

    Orient Mahila Vikas Scheme is well suited for women entrepreneurs who want to start small-scale businesses like Tiffin services, pickle making, tailoring, teaching, childcare, etc. 

    Under this loan scheme, the Oriental bank of Commerce lends capital to women entrepreneurs who are either owners of the business or have 51% ownership of the business. 

    Women can avail of loans worth Rs 10,000 to Rs 25 Lakhs to start their businesses. The loan interest rate is around 2%.    

    Dena Shakti Scheme

    Women who are more ambitious and want to establish businesses in manufacturing, retail stores, and franchise business like gas agency dealerships, agriculture, etc can avail Dena Shakti scheme. 

    Female entrepreneurs can avail of the loan amount up to Rs 20 Lakhs at a .25% interest rate. Under the micro-credit category, women can avail of loan amounts up to Rs 50,000. You can pay off your loan in monthly installments.  

    Annapurna Scheme

    Annapurna Scheme is specifically for women entrepreneurs who want to start a food catering business. Women can avail of loans of up to Rs 50,000 for buying basic stuff like utensils, lunch boxes, mixers and grinders, tables, etc to run their business.  

    Women have to pay back their loans in 36 monthly installments. The interest rate can go up to 12.25% for a period of 7 years. Women from poorer social backgrounds can apply for this scheme.  

    Cent Kalyani Scheme

    Under Cent Kalyani Scheme, the loan is offered by the Central Bank of India to women who want to start micro, small and medium enterprises like retailing, agriculture, cottage industries, etc. Loans will help women to meet their day-to-day capital expenses.  

    Women can avail of loans up to Rs 1 Lakhs at a 7.4% interest rate for a tenure range of 1 – 7 years. Moreover, there is no collateral or third-party guarantee required.  

    Bharatiya Mahila Loan

    The Bharatiya Mahila loan scheme is offered by The Bhartiya Mahila Bank (BMB) a Public Sector Bank (PSU) unit. You will be surprised to know to learn that Bhartiya Mahila Bank offers loans up to Rs 20 crores to women entrepreneurs. 

    The loan is given for working capital requirements, business expansion, and manufacturing business. Three different plans under which you can avail of loans are Shringaar for homemakers, Parvarish to set up daycare or crèches, and Annapurna for food entrepreneurs. 

    Generally, the interest rate is 10.15% per annum. 

    Udyogini Scheme

    Udyogini scheme is targeted towards women who come from very low-income households usually less than Rs 45,000 per year. 

    A woman can avail of a loan amount of up to Rs 100,000 for starting their own business. There is a 30% subsidy available for a loan amount of Rs 10,000. The loan is offered by the Punjab and Sind Bank.   

    Mahila Udyam Nidhi Scheme

    The Mahila Udyam Nidhi scheme is offered by the Punjab National Bank (PNB) and the Small Industries Development Bank of India (SIDBI). They offer loans up to Rs 10 Lakhs to women entrepreneurs to start small self-owned businesses like daycare centers, beauty parlors, tailoring shops, etc. Women have to pay back their loans within a time period of 10 years.  

    Synd Mahila Shakti Scheme 

    Last but not least Loan scheme on our list is Synd Mahila Shakti Scheme offered by Canara Bank. The scheme offers loans up to Rs 1 crore with no processing fee and a third-party guarantee. 

    The tenure of the loan is 10 years and the interest rate charged is .25%. More ambitious women who want to start something big can apply for this loan.   

    Other Alternatives 

    So these were the top 10 business loan schemes for women entrepreneurs in India. The loan schemes mentioned above are for women entrepreneurs from all socioeconomic backgrounds. Be it rich, middle class, or poor, everyone can avail of these schemes. 

    There are some other alternatives like small business grants for women and VC firms and angel investors for female entrepreneurs. However, these alternatives are limite to a few successful women in the country. 

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