7 trusted business loans for women entrepreneur in India

• Posted on Jun 11, 2020
• |
• By Shrotriyo S

India is witnessing a phenomenal growth in its small and medium enterprise sector. The MSME sector contributes over 45% of our industrial output, forming 40% of the GDP output. A part of this success story is being written by the country’s women entrepreneurs. Traditionally, women entrepreneurs have found it hard to secure business finance due to a number of social stigmas. However, the recent evolution in business finance and the emergence of FinTech platforms has made it easier for women entrepreneurs to get business loans. Today, business loans for women are also enabling self-employment in rural and urban India.

The rise of women entrepreneurs in India is a testament to the evolving landscape of business finance and the increasing availability of supportive resources. As these women navigate the challenges of securing funding and managing their ventures, the expertise of business and finance plan experts becomes invaluable. A well-structured business plan can significantly enhance the chances of obtaining financial support and achieving long-term success. Business and finance plan experts play a crucial role in guiding entrepreneurs through the complexities of financial planning, budgeting, and strategic growth.

One notable player in this field is Smart Business Plans, a company dedicated to helping entrepreneurs create comprehensive and effective business plans. By leveraging their expertise, women entrepreneurs can develop plans that clearly outline their goals, market strategies, and financial projections. This level of detail not only improves the likelihood of securing business loans but also provides a solid foundation for sustainable business growth. With the right support and resources, women entrepreneurs can overcome traditional barriers and thrive in India’s dynamic economic landscape.

Listed below are some of the schemes provided by Government of India along with various other public sectors to help women entrepreneurs raise capital.

1. Mudra Yojana Scheme

Mudra Yojana scheme was founded by Prime Minister Narendra Modi on 8th April 2015. This scheme was launched for the women entrepreneurs who want to start their own entrepreneurial journey. If you are a woman  applying for the loan then you should be at least 18 years and the maximum age for applying for this Mudra loan is 65 years. Under this scheme you can avail a loan of Rs.50,000 to Rs.10,00,000. The loan doesn’t require any collateral security.

The three schemes under this Yojana are:

1. Shishu– The scheme allows loans up to Rs.50,000.
2. Kishor– The scheme allows loans up to Rs.5,00,000.
3. Tarun– The scheme allows loans up to Rs.10,00,000.

The Mudra Scheme is only for non-corporate, non-farming micro, small and medium enterprises (MSMEs) in rural and urban India. These could be

• Small manufacturers
• Shopkeepers
• Fruits & vegetables vendors
• Artisans
• Individuals occupied in Agriculture

2. Bharatiya Mahila Bank

This is a woman entrepreneur loan who wants to start their business in the retail sector or manufacturing sector. Under this scheme you can avail a loan of up to 20,00,00,000. Women can claim a loan of up to Rs.1,00,00,000 for manufacturing industries and Rs.5,00,00,000 in case of retail and service enterprises. This women entrepreneur loan doesn’t require any collateral security for a loan of up to Rs.1,00,00,000.

The different plans under this scheme are:

• Shringaar– This plan is applicable for women who are self-employed or homemakers who want to purchase necessities for their business.
• Parvarish– Self-employed women or homemakers who want to start day-care creche can apply for this plan. The advantageous part of this loan is one can get a loan of Rs.1,00,00,000 under Credit Guarantee Fund Trust for Micro and small Enterprises (CGSTSM) scheme.
• Annapurna– The food entrepreneurs aged between 18-60 years wanting to scale up their business can apply for this loan. This loan also doesn’t require any collateral security.
• Kitchen Modernization- This has been designed especially for housewives and working men for the renovation of the kitchen, and purchase of electronic goods, furniture and utensils to be used in the Kitchen.

3. Orient Mahila Vikas Yojna

This women entrepreneur loan is provided by Oriental Bank of Commerce. You need to hold a 51%  share capital individually or jointly in a proprietary concern. This scheme provides a loan of Rs.10,00,000 to Rs.25,00,000 for women entrepreneurs in the small scale industry. You don’t need to provide any collateral security for a loan of Rs.10,00,000 under this woman entrepreneur loan. You get a period of seven years for repaying the loan.

4. Cent Kalyani scheme 

If you are a woman who is into agricultural work, Small & Medium Enterprise and retail trading then Cent Kalyani scheme is the ideal one for you. This women entrepreneur loan scheme is provided by the Central Bank of India. You can avail a loan of upto Rs.1,00,00,000 under this scheme with a margin rate of 20%. The aim of this scheme is to support women to start a new business or expand an existing one. You don’t need to provide any collateral security under this scheme.

5. Annapurna Scheme

This business loan is offered by State bank of Mysore to the women entrepreneurs who are planning to start a food catering industry as well as for women in the agricultural sector. You can claim a loan of Rs.50,000 which is a small amount. However, the positive side is you don’t need to pay EMI in the first month. 36 monthly installments are to be made as payment for the loan. The scheme aims to provide daily expenses needed to run the business. The interest rate could vary depending on the market rate. Here are the guidelines for the Annapurna scheme

6. Dena Shakti Scheme

This scheme is offered by Dena bank to those women who are in the field of agricultural, manufacturing, micro-credit, retail stores or small enterprises. The scheme is only limited to SMEs and you can take a loan of up to  Rs.20,00,000 with an interest rate of 0.25%. You can avail a loan of Rs.20,00,000 under retail trade, Rs.20,00,000 and Rs.50,000 under micro edit.

7. Mahila Udyam Nidhi scheme

The scheme was launched by Punjab National bank to support women entrepreneurs who are engaged in small scale industries. You have a time of 10 years to repay the loan and a moratorium period of 5 years. The downside is you can avail a loan of up to Rs.10,00,000. The interest depends on the market rates. This scheme has several plans for beauty parlours, day care centres, cars etc. It mainly aims to set-up new projects and promotes upgrading and modernisation of existing projects.

These are some of the women entrepreneur loans which you can raise. There are various different schemes for the different sectors for women entrepreneurs to raise loan. These schemes have had a positive effect on the outlook of women entrepreneurs and more and more women have started to take their first step towards becoming an entrepreneur. These schemes are expected to bring in a more positive change in the society and build a more equal society.

• Posted on Jun 11, 2020
• |
• By Shrotriyo S
• |
• 0 Comments