The Indian economic system is undergoing a significant transformation as more and more people quit their high-income employment to pursue entrepreneurship. The startup market, which is filled with many ideas and options, not only provides a very attractive earning potential but also a platform for showcasing one's entrepreneurial prowess and creative ability.
It is heartening to observe the significant increase in the proportion of women who hold entrepreneurial positions, with small enterprises thriving and aiming to make society a better place.
Small businesses like home-based food catering, beauty salons, etc. are giving women a way to slowly break into the mainstream market, and the government and various financial institutions are making it simple for them to get business loans to help them with their various entrepreneurial initiatives.
Features of business loan for women
Interest Rate: Discounted or concessional interest rates for Women Borrowers (vary from bank to bank)
Loan Amount: No Minimum Limit, Maximum Loan Amount Up to Rs. 10 lakh (may exceed)
Repayment Tenure: 12 months to 5 years
Collateral/Security or Third-party Guarantee: Not required
Loan Type: Term Loan (Short or Long term), Unsecured loan, Working Capital Loan, Overdraft
Eligibility
Age: 18 - 65 years
Applicants with no past loan defaults
Individuals, MSMEs, Sole Proprietorship, Partnership Firms, Limited Liability Partnerships (LLPs), engaged in trading, manufacturing and services sector
Annual Turnover: To be defined by bank or lender
Documents required
Application form duly filled
Self-written Business Plan
Identity Proof: Driving License, Voter ID Card, PAN card, Passport, Aadhaar card, etc.
Address Proof: Passport, Utility Bills, Aadhar Card, Voter’s ID card
Income Proof: Last 6 months’ bank statement, Salary Slips, Bank statement
Business Incorporation Certificate
Any other document required by the lender
Top 10 business loan schemes for women entrepreneurs in India
1. Cent Kalyani Scheme
The Central Bank of India offers this loan scheme to support women entrepreneurs by providing loans for their businesses and startups.
This loan is specifically targeted at women entrepreneurs who wish to start new small businesses or grow current ones.
It is a loan without collateral and there are no processing costs. Women working in the farming sector, government-supported retail businesses, and women whose work falls under the MSME category are all eligible to apply for this loan.
The Cent Kalyani scheme for women entrepreneurs will have a 100 lakh loan limit.
2. Bhartiya Mahila Bank
This was created with the goal of helping in the development of both a new startup brand and the expansion of an already established business. A woman entrepreneur is eligible to apply for a loan of up to Rs 20 crore for her company.
Shringaar and Annapurna are the two loan options that Bharatiya Mahila Bank offers. These loan schemes for female business owners provide significant assistance to those companies.
Shringaar - The Shringaar loan is mostly for female entrepreneurs in the beauty sector who seek to open new beauty parlours or grow their existing businesses.
Annapurna - The Annapurna loan focuses on offering financial help to women working in the catering industry. In fact, this enables them to purchase necessities for their catering business, such as utensils, managing trucks, etc. Additionally, this scheme offers loans to women who sell packaged foods, which generates a good income and is something that most housewives are able to do.
Both of these loan schemes for women are collateral-free and will be covered by the CGTMSE scheme.
3. Mahila Udyam Nidhi Scheme
Punjab National Bank provides this scheme. The Mahila Udyam Nidhi Scheme aims to encourage and promote MSMEs and small-scale businesses owned and operated by women.
They provide loan schemes for women to establish beauty parlours, auto rickshaws, and other types of female-owned businesses, among other things. The consumer will be given up to 10 years to pay back the loan.
The Mahila Udyam Scheme has a 10 lakh maximum loan amount.
4. Stree Shakti Package
This is one of the loan schemes that SBI offers to women business owners in the majority of its branches. However, they should have at least 50% of ownership in the business. This program's major goal is to help rural women in increasing their income.
5. Pradhan Mantri Rozgar Yojna
The Pradhan Mantri Rozgar Yojana scheme offers financial help to women entrepreneurs. Women working in various industries, start-up businesses, and service industries benefit from this scheme.
This scheme primarily focuses on giving women the opportunity to work for themselves by providing loans so they can become financially independent. The scheme includes agriculture in its coverage of various business opportunities. Most importantly, this plan gives a 15% project cost subsidy, up to a maximum of 12500 INR per person.
The Pradhan Mantri Rozgar Yojana scheme has a 2 lakh rupee loan limit for businesses, and a 5 lakh rupee limit for startups in the industrial and service areas.
6. Mudra Yojana Scheme
Under the Pradhan Mantri Mudra Yojana, the Indian government created the Mudra Yojana Scheme to support female entrepreneurs. The loans are offered without collateral to promote MSMEs and SMEs and to provide loan schemes for women. Additionally, the Pradhan Mantri Mudra Yojana offers three distinct schemes for various businesses called Shishu, Kishor, and Tarun. The applicant's age range should be between 18 and 35.
The Pradhan Mantri Mudra Yojana scheme would have a maximum loan amount of Rs. 10 lakh.
7. Udyogini Scheme
The Udyogini scheme was created to help rural women business owners and illiterate village women. Women Development Corporation put it into effect by providing a range of loan choices. This scheme places a strong emphasis on encouraging women's entrepreneurship, financial independence, and self-reliance.
Although, people whose families make 1.5 lakh rupees or less annually are eligible to use this option. The age range for applicants for the loan is 18 to 55.
The Udyogini scheme has a maximum loan amount of Rs. 3 lakh.
8. Orient Mahila Vikas Yojana Scheme
Oriental Bank in India offers this scheme. This is one of the loan schemes available to female business owners who want to grow their businesses. They must own at least 51% of the company's equity to qualify for that. There is no collateral charge for this loan. Additionally, the loan must be repaid over a 7-year period.
9. Dena Shakti Scheme
Dena Bank offers the Dena Shakti scheme, which offers loan options for female entrepreneurs to support their businesses in India. This is one of the loan schemes for female business owners available in the manufacturing, agricultural, and related industries. Women who work for MSMEs are also qualified to apply for this loan.
Under this plan, an interest rate concession of 0.25% is applied.
The Dena Shakti Scheme allows for loans of up to 20 lakhs for agricultural, MSMEs, manufacturing, and retail businesses.
10. Synd Mahila Shakti Scheme
Syndicate Bank's Synd Mahila Shakti Scheme offers financial support to women entrepreneurs. Credit facilities offer this to female entrepreneurs, retail dealers, and small business owners. This loan is available to women who want to launch a new business or grow their present business. This is one of the loans for women that provides candidates with free credit cards.
The Synd Mahila plan has a maximum loan amount of 5 crores.
Finding finance for female businesses can be challenging, but it is not impossible. Some lenders provide a variety of financing options for female-owned businesses.
With this amazing financial support structure in place, women are leaving no stone unturned in their efforts to break free from the stereotyped roles that they have been conditioned to perform. Although starting and running a business is undoubtedly difficult, our female business owners are doing an admirable job.
If a good business concept is buzzing about in your head, it is now time for you to apply for the loan and get the money.
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