Best Business Loans schemes for Women by the Government of India

In the recent decade, India has experienced an increase in startups. Many new generations of women are arising with promising startup ideas and implementing them into successful businesses in less-explored areas like food, travel, beauty, sanitation, automobiles, and even innovation. Moreover, obstacles like lack of social and financial support are dragging back women from entering into business.

To help the women to realize their startup dream, the Indian government has initiated new loan schemes. Read on to know the different business loan schemes introduced by the Indian Government to assist women entrepreneurs.

What are the Business loan schemes for Women entrepreneurs by the Indian Government? 

1:Mahila Udyam Nidhi Yojana:

Mahila Udyam Nidhi Yojana was started by the Punjab National Bank and Small Industries Development Bank of India (SIDBI). Under Mahila Udyam Nidhi, the women entrepreneurs avail of up to Rs. 10 lakhs to set up small-scale enterprises. Under this scheme, the borrowed amount can be repaid in 10 years and the interest rate is levied based on the market rate. It also has a loan moratorium that is extended to 5 years.

What are the eligibility criteria for  Mahila Udyam Nidhi Yojana?

1. Women entrepreneurs’ financial holding should not be less than 51%.
2. The applicant should avail loan to start a business in the trading, and manufacturing sectors.
3. The eligible companies are MSME business loan or tiny businesses loan with the lowest investment of Rs. 5 lakh.

2. Mudra Loan for Women:

Mudra Loans arrives with a motto to promote entrepreneurship within India. Many banks and other financial institutions provide Mudra loans to women who aspire to start a business in India.  Mudra loan does not need collateral security. However, there are certain categories under which the loan application can be applied.

1. The Shishu Loan is for a business that is in the initial stage. Here, the maximum loan amount offered is Rs. 50,000.
2. Kishor Loan is for existing businesses that wish to enhance services. Here, the loan amount varies from  Rs. 50,000 to Rs. 5 Lakhs.
3. Tarun Loan is for well-established businesses that aim to extend their reach. Here the entrepreneur can get up to Rs. 10 Lakhs.

What are the eligibility criteria for Mudra Loan?

1. The women entrepreneur should opt for a mudra loan to start production & manufacturing ventures like an artisan, weavers, craftsmen, etc.
2. Entrepreneurs who aspire to start, expand or modernize their startup that offers services like photocopying, tailoring, phone repairing, auto-repairing, beauty parlor services, etc can opt for Mudra loans.

3:Annapurna Scheme:

The  Annapurna Yojana is for women entrepreneurs engaged in the food catering business. Here, the entrepreneur can avail of up to ₹50,000. They can avail of the loan to buy utensils, tiffin boxes, mixer cum grinder, hot case, working table, etc. The loan tenure is 36 months. The interest rate depends on the market rate & the concerned bank.

What are the eligibility criteria for Annapurna Scheme?

• The entrepreneur should not be less than 65 years of age.
• The applicant who wants to avail of an Annapurna loan should not be a pensioner under the National Old Age Pension Scheme or State Pension Scheme.

4:Dena Shakti Scheme:

Dena Shakti Scheme offers credits up to Rs. 20 lakhs for women entrepreneurs who run or desire to start a business in arrear of agriculture, retail stores,  manufacturing, micro-credit, and small business. The scheme offers a concession of an interest rate of 0.25 percent. Under this scheme, the applicant can avail of up to Rs. 50,000. The tenure of the Dena Shakti scheme is seven years and the processing fee is charged 0.50% of the total loan amount.

5:Stree Shakti Yojana:

The Stree Shakti package offers certain concessions to motivate women entrepreneurs. Under this scheme, the women entrepreneurs can avail of a loan at an interest concession of 0.05 percent on the loan amount that is more than Rs. 2 lakh.

What is the eligibility to avail of Stree Shakti Yojana?

1. The eligibility to avail of this scheme is the women entrepreneur who possesses the majority of business ownership.
2. The entrepreneur should be registered under the Entrepreneurship Development Programme (EDP) managed by their respective state.

6. Orient Mahila Vikas Yojana Scheme

The Orient Mahila Vikas Yojana Scheme was introduced by the Oriental Bank of Commerce. The applicant should provide collateral to avail of loans between Rs . 10 lakhs to Rs. 25 lakhs. The repayment tenure of the Orient Mahila Vikas Yojana loan is seven years. Under this scheme, there is a concession of up to Rs. 2 % on the interest rate.

What are the eligibility criteria for the Orient Mahila Vikas Yojana Scheme?

The women entrepreneur who owns 51 percent share capital separately or jointly in a proprietary concern can opt for Orient Mahila Vikas Yojana.

7. Bhartiya Mahila Bank Business Loan

The scheme was Implemented by The Bhartiya Mahila Bank to offer women entrepreneurs loans up to ₹20 Crores for working capital necessities, business development, or manufacturing companies. The different plans under the Bharatiya Mahila Bank Business Loan scheme are

1. The BMB Shringaar loan is for self-employed women or homemakers planning to start a business or cater to their daily business expenses. No collateral security is required to get a BMB Shringaar loan.
2. The BMB Parvarish loan is also for self-employed women or homemakers to start day-care creches. The highest loan limit is Rs 1 Crore without pledging any security under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGS TSM) scheme.

8. Cent Kalyani Scheme

This loan is available for existing/new entrepreneurs and self-employed women. The entrepreneurs engaged in Micro/small enterprises such as the farming, agriculture, cottage industries, and retail trade are qualified to get a Cent Kalyani Scheme. There is no collateral security or guarantor required to avail of this loan. The maximum repayment tenure of the Cent Kalyani Scheme is seven years.