8 business loans and schemes every woman entrepreneur should know about

8 business loans and schemes every woman entrepreneur should know about

Women Entrepreneurship

GlobalLinker Staff

GlobalLinker Staff

260 week ago — 8 min read

With entrepreneurship in India on the rise, women are stepping outside their homes and regular jobs and breaking the traditional barriers to start something of their own. An all India report of the sixth economic census released by the Ministry of Statistics and Programme Implementation states that the women force in India constitute of nearly 14% of the total entrepreneurship. That means out of the 58.5 million entrepreneurs in India, 8.05 million are women.

One of the most discussed stumbling block on the road to a successful entrepreneurship in India is acquiring ‘funds’ and with the number of women entrepreneurs in India increasing every day, the government has laid out some schemes and business loans for women business owners.

In this article we cover some important loans schemes for women entrepreneurs in India. Read on.

1. Cent Kalyani Scheme

The Cent Kalyani Scheme  is offered by the Central bank of India. This business loan for women can be availed by new as well as existing women entrepreneurs in India who are into agriculture, cottage industries, small and medium enterprises, government sponsored programs and retail trade. 

The loan amount is up to INR 1 crore and is sanctioned with a margin rate of 20%. It is a collateral free loan and you don’t even require a guarantor to avail it. The business loan must be paid back within a period of seven years including a moratorium period of 6 months -1 year.

Also read: Challenges women encounter in their entrepreneurial journey

An all India report of the sixth economic census released by the Ministry of Statistics and Programme Implementation states that the women force in India constitute of nearly 14% of the total entrepreneurship.


2. Stree Shakti Package for women entrepreneurs

This unique scheme is offered by State Bank of India. The Stree Shakti Package is eligible for women entrepreneurs who have more than 50% ownership in a small business (having a majority ownership in the business).  These women entrepreneurs should also be enrolled in the Entrepreneurship Development Programme (EDP) organized by their respective state agencies.

The loan scheme allows women to avail a concession of 0.05% on the interest amount of the total amount exceeds INR 2 lakhs. No security in case availing loans up to INR 5 lakhs in case of tiny sector units.

3. Dena Shakti Scheme

Offered by Dena Bank (now Bank of Baroda), Dena Shakti Scheme was started with a vision to promote economic opportunities for women in India.  This business loan can be availed by women interested in doing business in the following categories:

  • Agriculture and its allied sectors
  • Small and Micro enterprises
  • Education
  • Housing
  • Retail trade
  • Micro credit

A loan amount of up to INR 20 lakhs for agriculture, education, housing, retail traders or small enterprises and up to INR 50,000 for micro credit is applicable. The tenure of the loan is seven years and a concession of 0.25% below base rates for women entrepreneurs who are majority stakeholders in the company.

4. Mudra Yojna Scheme

The Mudra Yojna Scheme was started with an aim to provide financial relief to women entrepreneurs wanting to start a small business venture.  Offered by nationalized banks under the Pradhan Mantri Mudra Yojna, this business loan can be used to start a beauty parlour, day-care center or similar small businesses.

A loan amount starting from INR 50,000 up to INR 50 lakhs can be sanctioned. No collaterals or guarantors needed if the loan amount doesn’t exceed INR 10 lakhs. Three different loan types are available:

  • Sishu- For a business in its initial stages, a loan amount of up to INR 50,000 can be availed.
  • Kishor- This loan type is for well-established businesses. Loans starting INR 50,000 up to INR 5 lakhs can be availed.
  • Tarun- A loan of up to INR 50 lakhs can be availed in order to expand a business.

Also read: Changing thought process to achieve gender parity

5. Mahila Udyam Nidhi Scheme

This scheme was started by Punjab National Bank with an aim to help women set-up new projects. It is now provided by even Small Industries Development Bank of India (SIDBI).

A loan amount of up to INR 10 lakhs can be availed under this scheme. The amount can be repaid within a period of 10 years. The rate of interest depends on the market rates at that time. Women entrepreneurs can use this loan to start a day-care center, beauty parlor or purchase auto rickshaws or cars. They can even use the loan to extend an already established business.

6. Bhartiya Mahila Bank Business Loan

Offered by Bhartiya Mahila Bank which later merged with State Bank of India in the year 2017. Loan amount of up to INR 20 crore can be sanctioned for purchasing working capital, business expansion or manufacturing enterprises.

Under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), special business loans and collateral free loans of up to INR 1 crore can be availed. A 0.25% concession in interest rates is also offered to women entrepreneurs in India. The tenure for repayment is seven years.

Below are the different plans under the scheme:

  • Sringar- This is a collateral free loan and is applicable for self-employed women or homemakers. Women business owners can set up a beauty parlor, purchase business equipment or meet their daily business expenses.
  • Parvarish- This is for women who want to set up a day-care center. Loans of up to INR 1crore can be availed without any collateral security under the CGSTSM scheme.
  • Annapurna- Women entrepreneurs between the age of 18-60 years waiting to start or expand their food business can avail this loan. It is a collateral free loan.

7. Orient Mahila Vikas Yojna Scheme

Offered by Oriental Bank of Commerce, this startup business loan can be availed by women who hold a 51% share capital individually or jointly. A collateral free loan if amount lies in between INR 10 lakhs – 25 lakhs for small scale industries. The tenure for repayment is seven years and a concession on interest rate of up to 2% is provided.

8. Udyogini Scheme

This novel scheme is aimed at providing financial support to illiterate women belonging to the poor or rural section of the society. Launched by Karnataka State Women Development Corporation (KSWDC), women between the age group of 18-55 years involved in agriculture, retail and other small businesses can avail this loan.

A loan amount of up to INR 3 lakhs can be availed and it is interest free. The income ceiling is INR 1.5 lakhs now against INR 40,000 which was the previous income limit.

With so many schemes available, watch your entrepreneurial dreams come alive. More power to us!

Also read: Women and work-then, now and in future

Image  courtesy: pexels.com

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