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