Starting a business is not easy as it looks from the outside. For every business, financing plays a major role. It is the base for any business. However, some people would not have financial support in the initial stage. That is why loan opportunities are given to those who are keen to start a business.
In particular, the number of women entrepreneurs is comparatively less than men in the country. Very few women get financial help from their homes when they pitch in the idea of starting a business. To resolve this issue, various banks have come up with exclusive loan schemes for women who want to kick start their businesses and are looking for financial support to expand their businesses. Their main goal is to help women to be financially independent and to help women from different backgrounds in bringing their business ideas and dreams to reality.
In this blog, we have mentioned various loan schemes for women that are launched to support women entrepreneurs to be financially independent and for those who are looking for opportunities to start a business or to expand their business.
10 Loan Schemes for Women Entrepreneurs
1. Cent Kalyani Scheme
This scheme is offered by the Central Bank of India to support women entrepreneurs and offer loans for businesses and startups by women entrepreneurs. This loan solely concentrates on women who want to start their own small business and on those who want to expand their business.
It is a Collateral free loan that has zero processing fees. Women who are in the farming industry, retailing firms that are supported by the government and women whose work comes under the MSME category are eligible to avail of this loan.
The loan limit for the Cent Kalyani scheme for Women entrepreneurs would be 100 lakhs.
2. Bharatiya Mahila Bank
The two loan options that are provided by Bharatiya Mahila Bank are Shringaar and Annapurna. These loan schemes for women entrepreneurs offer support to their businesses on a large scale.
This was created with a motive to help them create a new startup brand as well as to help them expand their existing business. A woman entrepreneur can claim the loan amount of up to Rs 20 crore for their business.
- The Shringaar loan is mainly for women in the beauty industry who want to set up their beauty parlours or to expand their business.
- The Annapurna loan concentrates on providing financial support to women in the catering business. This indeed allows them to buy essential products and equipment for their catering business like utensils, managing vehicles, etc. This scheme also provides loans to women who sell packed food items which yields them good income and is also something that most housewives manage to do.
Both these loan schemes for women are collateral-free which will be covered under the CGTMSE scheme.
The loan limit for Shringaar and Annapurna schemes would be 20 crores.
3. Mahila Udyam Nidhi Scheme
This scheme is offered by Punjab National Bank. Mahila Udyam Nidhi Scheme aims at promoting and helping MSMEs and supporting small-scale industries run by women entrepreneurs.
They offer loan schemes for women for different purposes including setting up beauty parlours, auto-rickshaws and other vehicles for business purposes for women. A time period of up to 10 years will be given to the person to repay the loan.
The loan limit for Mahila Udyam Scheme is up to 10 lakhs.
4. Stree Shakti Package
This is one of the loan schemes for women entrepreneurs offered by SBI in most of its branches. But they should have at least 50 percent ownership in the business. The main aim of this scheme is to help rural women in increasing their income.
5. Pradhan Mantri Rozgar Yojana
The Pradhan Mantri Rozgar Yojana scheme is offered to women entrepreneurs to support them financially. This scheme is beneficial to women from all industries, new ventures and services.
This scheme mainly focuses on creating self-employment opportunities for women thereby offering loans to them to be financially independent. The scheme covers all business options available including agriculture. This scheme most importantly provides a subsidy of 15 percent of project cost with the maximum amount of 12500 INR per head.
The loan limit for the Pradhan Mantri Rozgar Yojana scheme for the business sector is 2 lakhs and for services and industry-based startups and companies is up to 5 lakhs.
6. Mudra Yojana Scheme
The Mudra Yojana Scheme was initiated by the Government of India under the Pradhan Mantri Mudra Yojana to extend support to women entrepreneurs. To offer loan schemes for women to support MSMEs and SMEs, the loans are collateral-free. Also, the Pradhan Mantri Mudra Yojana offers three different schemes named Shishu, Kishor and Tarun for different businesses. The age criteria of the applicant should be between 18 to 35 years.
The loan limit for the Pradhan Mantri Mudra Yojana scheme will be up to 10 lakhs.
7. Udyogini Scheme
The Udyogini scheme was created to support women entrepreneurs from rural areas and illiterate women from villages. It was implemented by Women Development Corporation by offering various loan options. Under this scheme, they focus on supporting entrepreneurship, financial independence and self-reliance among women.
Although, this option can be availed by those who have a family income of 1.5 lakh Or less per annum. The eligible age limit to avail of the loan is 18 to 55.
The loan limit for the Udyogini scheme is up to 3 lakhs.
8. Orient Mahila Vikas Yojana Scheme
This scheme has been offered by Oriental Bank In India. This is one of the loan schemes for women entrepreneurs who want to expand their businesses. For that, they should hold at least 51% share capital in the business. For this loan, no collateral fee is required. And the period for repayment of the loan is 7 years.
9. Dena Shakti Scheme
Dena Shakti scheme is provided by Dena Bank where they provide loan schemes for women entrepreneurs to help them in their business in India. This is one of the loan schemes for women entrepreneurs offered in the field of manufacturing, agriculture sector and allied activities as well. Women who are involved in MSMEs are also eligible to avail of this loan.
A concession rate of 0.25 % is applied to the interest rate under this scheme.
The loan limit of the Dena Shakti Scheme is up to 20 lakhs for agriculture, MSMEs and manufacturing and retail enterprises.
10. Synd Mahila Shakti Scheme
Synd Mahila Shakti Scheme by Syndicate Bank grants financial support to women entrepreneurs. This is provided to small business owners, retail traders and self-employed women by credit facilities. Women who are looking to expand their business or to start a new business can apply for this loan. This is one of the loan schemes for women that offers free credit cards to their applicants.
The loan limit of the Synd Mahila scheme is up to 5 crores.
This article was a basic overview of the MSME loan schemes for women entrepreneurs and the loan limit. Although we’re sure it was helpful, for a more detailed and structured process of walking you through the application and availing of the loan schemes for women in India, you can visit www.udyamihelpline.com/experts to know more.