Today, females in India are equally motivated to become entrepreneurs as much as the males. Fortunately, banks and NBFCs, including the government of the nation recognizes the spirit of women entrepreneurs. Thus, they have come up with interesting business loan schemes for female citizens. The loans are usually directed to start-ups, provide working capital, and help in the journey of establishment and working of the company. These business loan schemes are slightly different and flexible than the standard loan schemes in terms of collateral security, tenure, fees and charges, interest rate, loan amount etc.
Here is a list of several business loan plans exclusively for women entrepreneurs in India.
Mudra Yojana Scheme for Women
The government of India has launched the Mudra Yojana scheme for female borrowers who want to launch a small and new enterprise in fields such as tailoring suits, beauty parlours, tuition centres and others. The applicant does not have to submit collateral. The loan can be granted individually or to a group of women who want to start a venture together. Once the loan is granted, the borrower will get a MUDRA card, which works as credit card. The funds allowed to withdraw is limited to 10 percent of the loan amount. Details of the 3 schemes under the MUDRA Yojana are listed below.
- Shishu: The maximum amount one can get is Rs. 50 thousand. This scheme is for women who have business in initial stage.
- Kishor: The funds are for females who have well-established enterprises. The amount of loan is between Rs. 50 thousand and Rs. 5 lakhs.
- Tarun: The funds are for established companies looking for money for expansion. The loan amount is up to Rs. 10 lakhs.
Cent Kalyani Scheme
The Central Bank of India offers the Cent Kalyani Scheme to support women who wish to start a venture or to modify and expand their existing enterprise. Maximum loan amount is up to Rs. 100 lakhs. The fund is basically given to females involved in micro, village and cottage industries, small and medium enterprises, agriculture and relate activities, government sponsored programs, self-employed individuals, retail trade etc. There is no requirement of collateral or guarantor here. There are no processing fees and charges as well.
Stree Shakti Package for Women Entrepreneurs
Most of the State Bank branches provide this loan scheme. There is a discount by 0.50 in interest rate if the amount of loan is above Rs. 2 lakhs. This scheme is for women who have at least fifty percent ownership share in a company. The applicant should have taken part in agencies run by state such as Entrepreneurship Development Programmes etc.
Dena Shakti Scheme
The Dena Shakti Scheme is directed to female borrowers in the field of agriculture, micro-credit, retail stores, manufacturing, and small enterprises. The women who need financial assistance can borrow a maximum of Rs. 20 lakhs for education, housing and other retail trades. The rate of interest is discounted by 0.25%. Under microcredit, the maximum amount one can borrow is Rs. 50 thousand.
The State Bank offers Annapurna scheme to females to set up food catering business for selling packed snacks and meals. A guarantor is necessary so is a collateral. The maximum fund is up to Rs. 50 thousand. The loan amount is for working capital requirements such as that to purchase utensils and kitchen machinery, equipment and tool. Repayment is to be done in monthly instalments. Tenure is up to 36 months. For the first month, the borrower need not pay EMI. Interest rate is calculated according to the market rate.
The Punjab and Sind Bank offers Udyogini scheme to female applicants, who wish to avail finance for small business enterprises, agriculture, and retail. There is a flexible term involved. Also, the borrower shall receive concessional interest rates. The loan amount maximum limit is Rs. 1 lakh for borrowers who fall between the age bracket of 18 years and 45 years. The family income of the applicant will be considered, which should be minimum Rs. 45 thousand annually for ST/SC women.
Orient Mahila Vikas Yojana Scheme
The Oriental Bank of Commerce offers this scheme to females who posses a minimum of 51 percent of share capital in a propriety concern. The share can be held individually or jointly. Concession of 2 percent is provided on the interest rate. No collateral security is needed for amount taken between Rs. 10 lakhs and Rs. 25 lakhs for small-scale companies, with repayment tenure up to 7 years.
Bharatiya Mahila Bank Business Loan
Females who are looking to launch a start-up can consider the Bharatiya Mahila Bank loan for business. The funds are granted for loan against property, retail sector, SME loans, and micro loans. Under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises), the applicant need not submit security for a loan amount up to Rs. 1 crore. The concession on interest rate is up to 0.25%. The rates start at 10.15% usually. Maximum loan amount can be up to Rs. 20 crores for loans taken for manufacturing industries.
Mahila Udyam Nidhi Scheme
The Punjab National Bank gives this scheme to support females involved in small scale industries. The bank offers soft loans that has a repayment tenure of up to 10 years. Interest rate is calculated as per the market rate. Maximum loan amount is Rs. 10 lakhs. The borrower can take the loan for several activities such as opening a day care centre, beauty parlour, purchase of vehicles such as cars, two-wheelers, auto rickshaws, etc.
According to the above-given business loan schemes for women, we can understand that these loan plans in India are oriented to help females who wish to launch a start-up, small and medium enterprise, agriculture business, and related activities. Flexibility of the loan terms and conditions under these schemes will enable women to establish a business comfortably. The discounted rates will help to reduce the burden of the loan payment.