Government Loan Schemes for Women in India
According to the Sixth Economic Census released by the Ministry of Statistics and Programmed Implementation, there are about 8 million women who have set up their business in India. They represent around 14% of the total of 58.5 million entrepreneurs in the country.
Undoubtedly Indian women are no longer subjugated under family, and societal pressures and cab pursue their career confidently today. However, lack of finance can be a major setback in their entrepreneurial journey. The same can be a difficult one to overcome. In order to address this situation and promote more women to take up the entrepreneurial path, the government of India has introduced several Business Loans for women. These government loan schemes aim to allow easy access to funds for women entrepreneurs.
Here is a list of government loan schemes for women entrepreneurs in India:
Stree Shakti Package for Women Entrepreneurs
The Stree Shakti Package is anSBI-led scheme to address the needs of women entrepreneurs by offering various concessions and benefits. Women with 50% share in the ownership of any business or firm and have enrolled in the Entrepreneurship Development Programmes (EDP) organised by their respective State Government are eligible under this scheme. This scheme also offers a concession in interest of up to 0.50% against loans for more than Rs. 2 Lakh.
Apart from this scheme, you can also apply for other SBI Business Loans that are available at friendly terms and conditions.
Mahila Udyam Nidhi Scheme
Offered by the Punjab National Bank and Small Industries Development Bank of India (SIDBI), this scheme provides soft loans for up to Rs. 10 Lakh to support women setting up any small-scale venture. SIDBI offers various plans for setting up beauty parlours, daycare centres, purchase of auto-rickshaws, two-wheelers, cars, etc. The repayment tenor for these loans can be up to 10 years.
Cent Kalyani Scheme
Offered by the Central Bank of India, this Business Loan scheme emphasises on supporting women in starting a new venture or expanding or modifying an existing enterprise. This loan does not require any guarantor or collateral, and there is no processing fee charged as well. Women engaged in the rural and cottage industries, micro, small and medium enterprises, agriculture and allied activities, retail trade, and government-sponsored programs and those who are self-employed are eligible to apply for this scheme. The maximum loan amount available under this scheme is Rs. 1 crore.
Bharatiya Mahila Bank Business Loan
Initially implemented by the Bharatiya Mahila Bank, which later merged with the State Bank of India in 2017, this scheme offers women entrepreneurs the facility to apply for Business Loans of up to Rs. 20 crore for meeting their working capital requirement and business expansion for manufacturing enterprises. It also offers special collateral-free Business Loan with attractive rates of interest up to Rs. 1 crore under the CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) cover. The repayment tenor is flexible and can go up to 7 years. It offers a combo of working capital and term loans. Moreover, women entrepreneurs can enjoy a 0.25 per cent concession in interest rate. The interest rates start from 10.15% per annum.
Dena Shakti Scheme
This scheme is offered by Dena Bank for women entrepreneurs who need financial assistance in the fields of agriculture, manufacturing, micro-credit, retail stores, or small enterprises. There is a concession of 0.25% in the interest rates and the maximum loan amount offered is Rs. 20 Lakhs for retail trade, education and housing. Maximum of Rs. 50,000 is offered under the microcredit category.
Orient Mahila Vikas Yojana Scheme
This scheme is offered by the Oriental Bank of Commerce. Women who hold 51% of the share capital either individually or jointly in a proprietary or partnership firm are eligible for this scheme. In case of small scale industries, there is no need for collateral security for loans of up to Rs. 25 lakhs. The maximum repayment tenor available under this scheme is seven years, and there is a concession in interest rates of up to 2% for women as well.
Mudra Yojana Scheme for Women
Launched by the Government of India, this scheme offers Business Loans for Women who want to establish a small new venture and business such as tuition centre, tailoring unit, etc. This is a collateral-free loan and can be availed as per 3 schemes namely:
- Shishu: Grants a Business Loan of up to Rs. 50,000 with the rate of interest being 1% per month or 12% per annum and the maximum repayment tenor is up to 5 years.
- Kishore: Grants a Business Loan ranging from Rs. 50,000 to Rs. 5 lakhs for a well-established enterprise.
- Tarun: Grants a Business Loan up to Rs. 10 Lakh for a well-established enterprise for further business expansion.
Offered by the Punjab and Sind Bank, the maximum Business Loan amount for women entrepreneurs available under this scheme is Rs. 1 lakh. This scheme emphasises on women entrepreneurs involved in agriculture, retail, and small business enterprises. Women between the age 18-45 years are eligible for this loan; however, the family income is taken into consideration and is set at Rs. 45,000 per annum for SC/ ST women.
With such great opportunities available, it is time for aspiring women entrepreneurs to take the leap of faith and move closer towards realising their dreams of becoming business owners.