Where Can Women Entrepreneurs Access Special Business Loan Schemes?

There has been a significant increase in businesses nationwide after the Shark Tank India broadcast. In today’s fast-paced digital world, empowering women entrepreneurs is more than just a step towards gender equality; it is a shift towards global economic prosperity. To support women’s journey in business, instant loans for business can provide the financial boost needed to turn their entrepreneurial visions into reality.

However, securing funds and loans is one of the significant barriers for women entrepreneurs. Government loans, which act as specialised financial aid, give women entrepreneurs a fair chance to compete in the competitive business world. A personal loan for self-employed women can offer flexible funding options to help manage business expenses or invest in growth opportunities. Let us learn about the sources from which women can secure loans for their businesses.

Government Schemes For Business Loans For Women

Some of the government schemes that offer business loans to women are:

Udyogini Scheme

The Udyogini Scheme supports women entrepreneurs by providing financial aid for their business ventures. It mainly targets underprivileged and economically disadvantaged women, with special priority given to widowed, destitute, and disabled women in India.

This scheme offers loans at low or zero interest rates for specific categories, especially those below the poverty line. Women aged 18 and 45 with annual family incomes below a particular threshold are eligible for the loan.

However, special preferences are given to widows, the disabled, and destitute women. The loans are granted for retail, small-scale business, and agricultural ventures.

Cent Kalyani Scheme

The Central Bank of India launched the Cent Kalyani Scheme. This scheme aims to empower female businesswomen without the need for collateral security. It offers loans for business expansion, modernisation, working capital needs, and setting up new businesses. It is open to small businesses, micro and small enterprises, self-employed women, and professionals. The scheme does not need any collateral security.

Bharatiya Mahila Bank Business Loan

Bharatiya Mahila Bank supports businesswomen through targeted loan programs. The scheme offers flexible repayment options for managing finances and supports various business needs across different sectors.

Dena Shakti Scheme

Dena Shakti Scheme focuses on providing financial aid to women entrepreneurs in key economic sectors by offering concessional interest rates. The loan benefits from a concession on the interest rate. It is aimed at women who own and manage their businesses.

Stand Up India Scheme

It aims to facilitate bank loans for setting up greenfield businesses in the manufacturing, services, or trading sectors. The loan amount can range between Rs 10 lakh and Rs 1 crore, and it supports at least one woman entrepreneur per bank branch.

Annapurna Scheme

Annapurna Scheme focuses on women entrepreneurs planning to establish or expand their food catering business. The scheme offers substantial loans for purchasing kitchen equipment and utensils. Additionally, it is primarily targeted at women in the food business, requiring no collateral for loans up to a specific limit.

Stree Shakti Package

The Stree Shakti Package, by the State Bank of India, provides loans at reduced interest rates for females who own a majority stake in small businesses. The scheme offers a concession for loans above a specific threshold and is available to women who have undergone entrepreneurship training.

Mudra Yojana Scheme

The Mudra Yojna for women is part of the broader Pradhan Mantri Mudra Yojna, aimed at providing unsecured loans to female entrepreneurs aiming to start small businesses such as beauty salons, stitching shops, and tuition centres. There are three loans under the scheme:

• Shishu Loan: Grants up to Rs 50,000 in the initial stages.
• Kishor Loan: Grants between Rs 50,000 and Rs 5 Lakhs for businesses looking to improve their services.
• Tarun Loan: Provides up to Rs 10 Lakhs for established businesses planning to expand their venture.

Mahila Udyam Nidhi Scheme

The Mahila Udyam Nidhi Scheme promotes female entrepreneurs by offering loans to start new businesses in the small-scale sector. The scheme provides soft loans up to Rs 10 Lakhs, repayable over 10 years.

Oriental Mahila Vikas Yojana

Oriental Mahila Vikas Yojana targets women who share the majority of proprietary concerns. The Oriental Bank of Commerce offers this scheme with loans ranging from Rs 10 lakh to Rs 25 lakh without a guarantor.

Check out these business loan schemes as a female entrepreneur.