Business Loan Schemes In India For Budding Women Entrepreneurs

Business Loan Schemes In India For Budding Women Entrepreneurs

The present-day women are breaking all stereotypes and have marked their presence in the competitive business world as well. This passion of the women is even infiltrating in the lesser developed Indian regions. Notably, women entrepreneurs in rural areas require adequate funds to kick-start their small business. They find it challenging to arrange for the seed capital.

To boost the budding women entrepreneurs in India and promote the growth of their small business, the government of the country has offered several schemes wherein they offer a business loan for women.

Let’s take a look at these schemes that can be the best friend of budding women entrepreneurs:

Bharatiya Mahila Bank

BMB or Bharatiya Mahila Bank commenced its operations just three years ago. It has more than 45 branches across India today. The target customer segment of the bank is unbanked, underprivileged, discriminated, and economically neglected women who desire to start a business and be an entrepreneur. The bank has a number of small business loan offers:

  • BMB Annapurna: it is categorised under CGTMSE scheme (Credit Guarantee Fund Trust for Micro and Small Enterprises) and is offered to the women business owners who want to run or own a food business. The funds so availed can be used to purchase equipment, as working capital, and other such requirements of the company. It is an unsecured business loan with a three-year loan tenure. Women who run the business independently as well as in partnership can avail the loan facility. Though there is no need to offer security, a guarantor is required to secure the loan.
  • BMB Parvarish: it is also offered under the CGTMSE scheme. The loan is offered to women entrepreneurs who want to open a business in daycare centre services. It is also a collateral-free business loan with a loan tenure of five years.
  • BMS Shringaar: offered under the CGTMSE scheme, the loan has repayment tenure of seven years. The loan is offered to women entrepreneurs who wish to start their business related to the beauty parlour, salon, spa, etc.

TREAD Subsidy Scheme for Women

The MSME ministry offers the TREAD scheme for women entrepreneurs. It aims to provide financial assistance to women entrepreneurs. Under the scheme, the women entrepreneurs get a subsidy of up to 30% of the total project cost. The lending institutes first evaluate the value of the project and then offer instant business loan assistance.

  • The women who apply for the loan scheme are generally semi-literate, literate, or underprivileged.
  • The scheme aims to help women business owners who didn’t receive financial assistance from banks.
  • The subsidy request for the scheme is taken into consideration only when it comes through an NGO – Non-government organisation.

Mahila Udayam Nidhi

Launched by the Puducherry (Pondicherry) government, it is a subsidy scheme. It aims at helping female entrepreneurs to set up their SSI unit in Puducherry’s service sector. Here, the funds are offered in the following ways:

  • 25% of the total cost of the project as subsidy
  • 10% as promoter contribution
  • 65% as a term loan

The tenure of the loan ranges between six and eight years.

Mahila Coir Yojana

Under this scheme, the women in rural area get financial assistance for their business in coir works.

Stree Shakthi

The Stree Shakthi is for female entrepreneurs who are running a business with at least 50% stake in it. The scheme offers the required financial assistance to businesses owned by women entrepreneurs. However, the businesses run by women who have completed the Entrepreneurship Development programmes can avail the scheme. Notably, these programmes are organised by state-level agencies. Under this package, the business owners can get an interest concession of 0.50% on loans above Rs. 2 lakhs.

Dena Shakti Scheme

The scheme is provided by Dena Bank and promotes women-owned businesses by extending financial services. The business loans similar to other loans can be availed at the interest rate concession of 0.25%. The businesses can be engaged in the manufacturing, agricultural, and allied sector. Women business owners who run retail stores, small enterprises and microcredit facility can avail this type of loans.

Cent Kalyani Scheme

The Central Bank of India initiates this scheme for the welfare of female entrepreneurs. Under this scheme, the women business owners are provided with funds required to commence a new business. The scheme offers financial assistance to female business owners, self-employed women, professional women, and new business owners (female). The business loan under this scheme can be availed by small-scale businesses, women entrepreneurs, and retail traders. Women involved in agricultural, village, and cottage industries and allied activities can also avail a loan under this scheme.

Mahila Udyam Nidhi Scheme

It is an initiative by SIDBI – Small Industries Development Bank of India. It offers loans up to Rs. 10 lakhs to women who aspire to become entrepreneurs by setting up their own small scale business venture.

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