Business Loans for Women Entrepreneurs in India
There was a time when women in India were limited to homes or stuck with a 9-5 job. Now, the time has changed a lot, today’s Indian women are emerging as the leading entrepreneurs. Though the business world is already familiar with female power with businesswomen like Indira Nooyi, Ekta Kapoor, and Chanda Kochar to name a few but they have inspired a lot of women to crave a mark of their own and establish themselves as a businesswoman.
The government of India has come with multiple schemes and plans to empower the emerging female entrepreneurship and make sure that these women entrepreneurs do not have to face the hassle of a capital.
Out of the numerous schemes out there, we have narrowed the list of the top 5 business loans for women entrepreneurs in India to support female entrepreneurship. So, if you are looking for the schemes and plans to support your business financially, business or anyone around you, then continue to read and achieve your business goals.
Business Loans for Women Entrepreneurs in India
One of the best business loans for women entrepreneurs in India, Annapurna Scheme provides loans up to Rs. 50,000 in the agricultural sector. Initially, this loan used to be offered by the Bharatiya Mahila Bank and The State Bank of Mysore now since these banks are merged, the loan is offered by the bank in which they are merged.
The best part about this government scheme is that women do not have to pay EMI for the first month after the loan is approved. After the first month, the borrower needs to repay the amount in EMIs for 36 mothers with the interest rate that is determined on the market rate. The drawback we find in the scheme is that you need a guarantor along with the assets of the business being pledged as collateral security. Another drawback is that the maximum amount you can avail is Rs. 50,000.
Mahila Udyam Nidhi Scheme
Provided under Small Industries Development Bank of India, the Mahila Udyam Nidhi Scheme provides the maximum financial support of up to s. 10 lakh for establishing new industrial ventures in the small scale sector.
The plan allows the borrowers to repay the loan in 10 years. SIDBI (Small Industries Development Bank of India) also includes a five year moratorium period. The interest rate varies as per the market rates. Under this scheme, SIDBI offers multiple plans for daycare centers, beauty parlours, purchase of two-wheelers, cars, rickshaws. Besides, it also supports upgrading and modernizing existing projects.
Udyogini Scheme is among the best business loans for women entrepreneurs by the government of India to help emerging women entrepreneurs by asking for the lower possible interest rates for the loan provided. Under this scheme, Rs. 1 lakh gets sanctioned for women who are 18 years to 45 years old to start their business.
The major condition of this loan is that the family’s yearly income should be less than Rs 45,000. This condition is not applicable to disabled, widow, or destitute women. If you are falling under the income limit waiver category or are under SC/ST category, they are provided with a subsidy of Rs. 10,000 or 30% of the sanctioned loan, whatever is less? If you belong to the general category, you get a subsidy of s. 7,500 or 20% of the sanctioned loan amount is provided, whichever is less.
Initially, this business loan was promoted by Punjab and Sind bank but later many other banks have joined hands and provide this loan to the future of woman entrepreneurs in India.
MUDRA Yojana Scheme for Women
MUDRA Yojana Scheme for Women was launched by the Indian government to support enthusiastic women entrepreneurs who want to start their own business in a stitching shop, beauty parlour, tuition centre and any other venture options that can make them financially stronger with minimum efforts.
This scheme comes with many amazing features. It is focused on funding a business, now whether it will be run by a single woman or a group of ladies, this is totally up to the women coming together for a startup.
Stree Shakti Package
A unique SBI-run scheme, the Stree Shakti Package supports women entrepreneurs by providing them certain concessions. You are eligible for women if you hold majority ownership means more than 50 percent in a small business.
Another condition of this scheme is that these entrepreneurs have to be enrolled in the Entrepreneurship Development Programme organized by their respective state agency. This scheme allows women entrepreneurs to avail an interest concession of 0.05% on loans exceeding Rs. 2 lakh. It does not require any security for loans up to 5 lakh in case of tiny sector units.
Hopefully, you found this post helpful and make your business successful with this guide.
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