Women entrepreneurs and businesswomen play a very important role in running of successful businesses and national development as a whole. The entire country knows about successful businesswomen like Shikha Sharma (CMD of Axis Bank), Kiran Mazumdar (Chairman of Biocon) and Indra Nooyi (Pepsico Chairman). Such women entrepreneurs also encourage young women to pursue their dream. Recognising the role of women entrepreneurs in national development, Govt of India and State Govts runs various government loan schemes to incentivize women entrepreneurs. The details of schemes are as follows:
Government Loan Schemes
Bharatiya Mahila Bank
Bharatiya Mahila Bank started as a bank that focused on providing finances to underprivileged women who wanted to start their own businesses. It was merged with State Bank of India on March 31st, 2017. The Bank offers following schemes for women entrepreneurs:
- Loans of up to Rs. 20 Crores are sanctioned for manufacturing enterprises
- Under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), you can avail a collateral-free loan of up to Rs. 1 crore.
a. This loan must be repaid within 7 years.
b. The base rate of interest on this loan is 10.25% to which an additional 2% is added, making the rate of interest at 12.25%.
Annapurna Scheme
In the event that you need to have your own particular sustenance providing food catering business, and need a monetary leg up, this is an appropriate plan to consider. Bank will sanction loans of up to Rs. 50,000 on following terms:
- Collateral in the form of assets and a guarantor are needed to avail this scheme
- The loan must be repaid within 3 years.
- After the loan is sanctioned, you have a grace period of 1 month before you must start repaying the loan amount
- Interest rates vary according to market rates
This is offered by Bharatiya Mahila Bank, as well as State Bank of Mysore
Stree Shakti loan offered by Bank of Mysore:
Have you been a piece of Entrepreneurship Development Programs (EDPs)? This offer could be what you have to give your business a lift.
- Loans of up to Rs. 50 Lakhs are sanctioned
- If your loan amount exceeds Rs. 2 Lakhs, a concession of 0.50% on the rate of interest is offered
- You must have 50% ownership in the business for which you want the loan
Orient Mahila Vikas Yojana Scheme offered by OBC
This scheme for women business person goes to support women with the capital they require for beginning independent companies.
You must have a minimum of 51% of ownership in the business you want a loan for
- A concession of 2% on the rate of interest is offered
- You must repay the loan within 7 years
- If your loan amount is below Rs. 10 Lakhs, a collateral is not needed
- In the case of SSI (Small Scale Industries), up to an amount of Rs. 25 Lakhs, a collateral is not needed.
Dena Shakti Scheme
This loan scheme for women is a solution for those who want to make a business out of manufacturing goods and agricultural work.
Loans of up to Rs. 20 Lakhs are sanctioned under the category of education, housing, and retail trading
- Under the category of microcredit, loans of up to Rs. 50,000 are offered
- You are offered a concession of 0.25% on the rate of interest.
Udyogini Scheme
The main advantage of the Udyogini Scheme is low-interest rates on business loans.
Loans of up to Rs. 1 Lakh are sanctioned, given the woman availing the loan is aged between 18 and 45 and her family’s yearly income should be Rs. 45,000 or less. However, there is no income limit for widowed, destitute or disabled women. For widowed, destitute or disabled women and women belonging to SC/ST category, a subsidy of 30% of the loan, or Rs. 10,000 (whichever is lower) is also provided. For women belonging to the general category, a subsidy of 20% of the loan or Rs. 7,500, whichever is lower, is provided. Punjab & Sind Bank started promoting this scheme, and many other banks, including Karnataka State Women’s Development Corporation (KSWDC), offer this loan today.
Kalyani Scheme
This advance plan is perfect for women who oversee SMEs or is associated with agrarian work or takes part in retail exchanging.
Loans of up to Rs. 100 Lakhs are sanctioned on following terms:
- No collateral or guarantors are required
- Another benefit of this scheme is that there is no processing fee
- This was launched and is offered by Central Bank of India
- Interest rates vary according to market rates
Mahila Udyam Nidhi Scheme offered by PNB
This loan is aimed at enabling women to set up new ventures. It principally focuses on the little scale part and advances updating and modernization of existing ventures.
- Loans of up to Rs. 10 Lakhs are sanctioned
- These must be repaid within 10 years and includes a moratorium period of maximum 5 years
- Interest rates vary according to market rates
Mudra Yojana Scheme for Women
Under this scheme, loans starting from Rs. 50,000 up to Rs. 50 Lakhs are sanctioned on following terms:
Shishu Plan: For businesses in the initial stages. A loan of up to Rs. 50,000 is sanctioned
– Kishor Plan: For well-established businesses. Loans in the range of Rs. 50,000 to Rs. 5 Lakhs are sanctioned
– Tarun Plan: For expanding a business.Loans of up to Rs. 50 lakhs are sanctioned
Women must apply for a loan under the Shishu, Kishor or Tarun plans
No collateral or guarantors are required if the loan amount is less than Rs. 10 Lakhs