A no-nonsense checklist for women entrepreneurs looking for Small Business Loans.
Entrepreneurship is tough, nerve-wracking, soul-crushing and mind-bending.
For women entrepreneurs, it is all of that multiplied by the power of ten. Ask any woman who has been through the grind and she will recount to you her nightmares through the strange hinterland of India’s business landscape. With the turn of the century, however, the broken wheel has found its axle. Things are steadily shifting gears. Conversations are finally turning in favour of women.
Small Business Loans, although unheard of earlier, have found a resonating voice among women entrepreneurs who are taking the first step towards converting their dream projects into a piece of reality. With a host of dedicated facilities to choose from, Small Business Loans are turning out to be a dynamic force, catapulting ambitious women to the forefront of business leadership.
Financial institutions in India have come up with this unique offering for women entrepreneurs to help them access the right funds. Recognising the need to support independently run businesses, these institutions are now providing relaxed terms and conditions, reduced interest rates and collateral security. In addition, some of them are also setting up training facilities to help the entrepreneurs promote and market their products.
So, if you are one of the many women self-starters looking for that one giant leap forward, pay close attention. Presented below are some of the best performing Small Business Loans available for you right now:
Cent Kalyani Scheme:
If you are looking to boost your profit margins, this is the scheme that you will want to take advantage of. Offered by Central Bank of India, this loan is open for new and existing entrepreneurs. You can use this loan to purchase new equipment, meet your capital requirements and take care of your daily business expenditure.
Who can avail this loan?
Women entrepreneurs running a manufacturing or a service business are eligible to apply for this loan. 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.
What is the maximum amount of loan that you can avail?
You can get a maximum amount of Rs.1 crore with this loan.
What is the rate of interest that you will need to pay?
| Amount Borrowed
|
Interest Rate |
| Loan of Rs. 10, 00, 000 | 9.70% + 0.25% = 9.95% |
| Loan of Rs. 10, 00, 000 – 100, 00, 000 | 9.70% + 0.50% = 10.20
|
Why should you consider this loan?
This loan is an enabler for the ones with an appetite for growth. Kick-start your long-awaited dream project or step up the operations of your current business with this low-interest loan from Central Bank.
Additional Reading: Yes Bank – Unsecured Personal and Small Business Loans
Udyogini Scheme
This scheme aims to promote women entrepreneurship among the poor, especially in the rural and backward areas of the country by providing required financial assistance. Offered by Punjab and Sind Bank, loans under this scheme are available at liberal terms and at a lower rate of interest.
Who can avail this loan?
Women entrepreneurs who are between the age group of 18 – 45 years can apply for this loan.
What is the maximum amount of loan that you can avail?
The maximum amount of loan that you can get from this scheme is Rs 1 lakh.
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.
Additionally, 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.
Annapurna Scheme:
If you have just started out in the food business and need a little help to set your business in order, this is the loan that you should check out.
Offered by State Bank of Mysore, this scheme enables women entrepreneurs in the food catering industry to sell lunch packs, snacks, and other forms of food. You can use this loan to invest in working capital for purchasing utensils, water filters and other kitchen equipment required for your business.
What is the maximum amount of loan that you can avail?
The maximum loan amount provided on this composite term loan is Rs. 50,000. Keep in mind, the loan needs to be repaid in 36 monthly instalments. Additionally, you will also be eligible to get a one-month ‘EMI-free’ period after the loan is disbursed.
Why should you consider this loan?
The food industry can be back-breaking for those just starting out. Get rid of the bottlenecks and streamline your business with this unique loan offering.
Additional Reading: Small Business Loans For Women
Stree Shakti Package For Women Entrepreneurs
Women entrepreneurs with a long-term vision for growth can look to explore this scheme offered by SBI.
Who can avail this loan?
If you are a woman entrepreneur having at least 50% ownership in your business, you are eligible to apply for this loan.
Why should you consider this loan?
You will get the necessary financial assistance at your disposal and at an interest concession of 0.05%. The interest concession can be availed on loans worth Rs.2 lakh or more.
Additional Reading: Should You Take A Personal Loan For Your Business Plan?
Small Business Loans can be a powerhouse of resources for women entrepreneurs. Hope this article has helped you zero in on a few.
If you’re in the market for Personal Loans, check out a wide variety of options right here.