Small Business Loans For Women

By Steffi Dsouza | August 3, 2017

Small Business Loans For Women

The number of women-owned businesses has nearly doubled in the last two decades in India thanks to economic development and a growing focus on ‘woman power’. The good news is that banks have simultaneously stepped up and launched special loans at attractive interest rates to promote women entrepreneurs in the country.

Additional Reading: Special Offers On Loans For Women

If you’re a woman entrepreneur or an aspiring one and you aren’t aware of the special loans that are exclusively available to you, then this article is for you. These special schemes offer flexibility in terms of collateral security as well as interest rates. Many banks even offer proper counselling sessions for women entrepreneurs and show them proper avenues of growth and ways to promote their businesses.

Additional Reading: Start-Up India – What It Means For Women Entrepreneurs

We’ve put together an informative and exhaustive list of these loans, just for you.

Business loans for women

  1. Annapurna Scheme

The scheme is meant for women entrepreneurs who want to set up food catering units to sell lunch packs, snacks, other forms of food.

This loan can also be utilised to invest in working capital for purchasing utensils, water filters and other kitchen equipment required for business.

This loan is given by State Bank of Mysore.

The maximum loan amount provided on this composite term loan is Rs. 50,000.

The loan needs to be repaid in 36 monthly instalments.

There is a one month ‘EMI free’ period after the loan is disbursed.

This loan requires a guarantor and assets to be submitted as collateral.

The interest rate applicable on this loan is as per market rates.

  1. Stree Shakti Package For Women Entrepreneurs

This package is available for women entrepreneurs who have 50% ownership in a firm or business.

Most State Bank branches offer this scheme.

You are eligible for a 0.50% concession on the interest if the loan amount exceeds Rs. 2 lakhs.

Only women entrepreneurs who have taken part in Entrepreneurship Development Programmes (EDP) organised by state level agencies are eligible to apply.

Additional Reading: How To Calculate Your Loan Eligibility

  1. Bharatiya Mahila Bank Business Loan

This bank supports and encourages women entrepreneurs to start their new ventures.

This bank lends Business Loans up to a maximum of Rs. 20 crores to manufacturing enterprises.

As a woman you can avail this loan at a concession of 0.25% on the loan interest rate and get a collateral-free loan up to Rs. 1 crore under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

Interest rate on this loan starts from 10.15% p.a.

This bank offers loans for the retail sector, loan against property, MICRO loans, and SME loans.

Additional Reading: Is Taking A Loan Against Your Property A Good Idea?

  1. Dena Shakti Scheme

This scheme is offered by Dena Bank and aims at providing financial assistance to women entrepreneurs.

Women benefit from a 0.25% reduction on the interest rate.

This loan is available for entrepreneurs engaged in agriculture, manufacturing, micro-credit, retail stores, or small enterprises.

The maximum ceiling limit on this loan is Rs. 20 lakhs under retail trade, Rs. 20 lakhs under education & housing and Rs. 50,000 under micro credit.

Additional Reading: 7 Money Mistakes Entrepreneurs Should Avoid

  1. Udyogini Scheme

This scheme is promoted by Punjab and Sind Bank to encourage female entrepreneurs to obtain business loans at liberal terms and low interest rates.

Under this scheme, women entrepreneurs who are between the age group of 18 – 45 years can get a loan up to Rs. 1 lakh. However, the family income limit to avail this loan is set at Rs. 45, 000 per annum for all women including those belonging to SC/ST.

No income limit is prescribed for women belonging to other categories like widows, destitute or disabled women.

Karnataka State Women’s Development Corporation (KSWDC) provides a subsidy at 30% of the loan sanctioned for widows, destitute, disabled women and women who belong to SC/ST category, or Rs. 10,000 whichever is lower. Under the general category, the subsidy is at 20% of the loan or Rs. 7,500 whichever is lower.

This loan can be used for agricultural activities, retail, and small business enterprises.

Additional Reading: Small Schemes For Low Income Groups

  1. Cent Kalyani Scheme

This scheme has been launched by Central Bank of India.

It is available for women employed in village and cottage industries, micro, small and medium enterprises, self-employed women, agriculture and allied activities, retail trade, and government sponsored programmes.

The objective of this loan is to help women entrepreneurs to start a new project or expand/modernise an existing unit.

You can avail a loan of up to Rs. 100 lakhs under this scheme.

There is no need for collateral security or third-party guarantee on this loan. There is no processing fee either.

The interest rate varies from one sector to another and is based on market rates.

  1. Mahila Udyam Nidhi Scheme

This scheme has been launched by Punjab National Bank.

This scheme is mainly targeted towards the small-scale sector.

You can get a loan up to Rs. 10 lakhs.

This soft loan is repayable within 10 years.

The interest rates are dependent on market rates and are revised from time-to-time.

There are special loans catering to beauty parlours, day care centres, buying auto-rickshaws, two-wheelers and cars.

The rate of interest varies for each of these loans.

  1. Mudra Yojana Scheme For Women

Launched by the Government of India this scheme provides loans to women to motivate them to start new ventures.

This loan can be applied for by women who are looking to start their own beauty parlours, tailoring units, tuition centres and other small ventures. This scheme also targets groups of women who get together to start a joint venture provided they are eligible.

This loan is collateral free.

The Yojana provides three categories under which your business will fall and the funding will be done accordingly. The categories are:

  • Shishu – Under this category you can get a loan of up to Rs. 50,000. This is for businesses who are in their initial or starting stages.
  • Kishor – Under this category you can get a loan of up to Rs. 50,000 to Rs. 5 lakhs, if your business is well established.
  • Tarun – you can get a loan of Rs. 10 lakhs if your business is well established and if you’re looking for funds to expand it.

Once you get a loan through this scheme, you will be given a ‘Mudra Card’ that is just like a Credit Card. The limit of your card will be 10% of the loan you have been granted.

Additional Reading: How To Get A Business Loan

  1. Orient Mahila Vikas Yojana Scheme

This scheme was started by Oriental Bank of Commerce.

Women borrowers can enjoy up to 2% concession on the rate of interest.

There is no need for collateral security for loans starting from Rs. 10 lakhs and going up to Rs. 25 lakhs in case of small scale Industries (SSI).

The bank has micro-credit units which provide doorstep services to women residing in rural areas.

However, only women who manage all units in a proprietary concern in which she/they individually or jointly have a share capital of not less than 51% are eligible for this loan.

The repayment tenure is set at 7 years.

Now that you have some idea about the kind of loans available for women, perhaps it’s time to take that step and start your own business. After all, you’ve got everyone including the banks rooting for you.

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42 thoughts on “Small Business Loans For Women

    1. Team BankBazaarTeam BankBazaar

      Hi Amita,

      Thanks for writing to us. You can check your eligibility for a loan here.
      Cheers,
      Team BankBazaar

      Reply
      1. Team BankBazaarTeam BankBazaar

        Hi V Sharmila,
        If you are looking for a business loan, please click here.

        Cheers,
        Team BankBazaar

        Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Monika,

      You can check your eligibility for a loan here.
      Cheers,
      Team BankBazaar

      Reply
  1. JUHI JASMINE

    Hello Ma’m , main ₹ 50000-₹70000 tak ka loan lena chahti hun.. aap mujhe jaankari den ki main kis scheme r kis bank se kam se kam interest rate par loan lun

    Reply
  2. Surya

    Hi how can we get a loan to start a garment sector business as in boutique. Please do let me know

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Surya,

      You can talk to your bank about getting a business loans. If you’re interested in a small business loan, you can click here to check your eligibility.

      Cheers,
      Team BankBazaar

      Reply
  3. shashi

    Hi,

    I am actually thinking of starting a day care and pre primary school .Does any bank provide loan for this ?

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Shashi, It’s possible to get a loan for your business venture. Please click here to apply for a small business loan.

      Cheers,
      Team BankBazaar

      Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Shobha,
      Banks offer business loans to individuals depending upon;
      – the collateral
      – credit history
      – nature of business
      – financial condition of the company
      However, you can check your eligibility for a Personal Loan here.
      Cheers, Team BankBazaar

      Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Sangita,

      Please click here to apply for a business loan.We also suggest that you go through this article too. In a nutshell, you will have to do these things before you approach your lender:
      – Prepare a detailed business plan
      – Be transparent about your business plan with your lender
      – Work out how much money you will need to borrow after estimated costs
      – Check your credit score for eligibility

      We wish you good luck.
      Cheers,
      Team BankBazaar

      Reply
    1. Team BankBazaarTeam BankBazaar

      Hi SHAHNWAZ AHMED,

      You can apply for a business loan to set up a chemist shop. Click here to apply for a business loan.
      Good Luck.

      Cheers,
      Team BankBazaar

      Reply
  4. parul talukdar

    Hello , sir/medam.
    Main apna clothes ka dukan kholna chahti hu . So pls aaplog bataiye ki mujhe loan milega ki nai or low interest me kaun se bank se loan milega

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Parul Talukdar,

      You can read this article to understand how to get started with your business.

      And if you need a loan, you can check your eligibility here.

      Cheers,
      Team BankBazaar

      Reply
  5. Sutopa Sarkar

    Can you please tell me in what eligibility I should have to take ” mahila udyam nidhi sceme”? In WEST BENGAL.

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Sutopa Sarkar,

      You can avail this scheme as long as you are a woman with a stable income.

      You can check your eligibility for all other loans here.
      Cheers,
      Team BankBazaar

      Reply
  6. Sutopa Sarkar

    This is really great to know about many kinds of loans in here . This is very helpful .

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Sutopa Sarkar,

      We appreciate your feedback. All the best.

      Cheers,
      Team BankBazaar

      Reply
  7. eshan

    i want a loan for my wife she want to start her medical pharmacy business pls let help me where i can go for getting a loan approx 25 lacs for this urgently

    regards
    eshan
    7530957539

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Eshan,

      You can check your eligibility for a loan here.

      Cheers,
      Team BankBazaar

      Reply
  8. rohan shaky

    Hello sir
    Main ROHAN meri mom ki shop he garments ki
    Vo loan Lena chahti he shop Se kya hame loan mil sakta he low intest pe kiss bank Se mile gaa pls talk me sir …
    I waithing for ..ur reply my no.7404339504

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Rohan,

      You can compare various loans on our website. Click here.

      Cheers,
      Team BankBazaar

      Reply
  9. Jaishri

    please give me details abt loan
    i need loan for my business

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Jaishri,

      You can check your eligibility for a loan here

      You can also read a little more about business loans in this article.

      Cheers,
      Team BankBazaar

      Reply
  10. nagarathna

    I m planning to start saree business can i get loan for this business for start up business. please suggest me

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Nagarathna,

      To get a business loan you will have to first start your own business, have a significant amount of sales and generate income/profits through it. Banks will need a valid income proof, valid id proof and sometimes a guarantor too. To start your business, you might have to get a loan against property or a Personal Loan. If you are presently not employed, getting a Personal Loan may not be easy. We suggest that you consider a loan against any of your assets. Click here to check your eligibility for a loan.
      Cheers,
      Team BankBazaar

      Reply

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