- Date : 01/12/2020
- Read: 6 mins
Here are the different ways that women entrepreneurs are backed financially by various government schemes

India continues to see immensely successful women entrepreneurs; Indra Nooyi, Chanda Kochar, and Ekta Kapoor being a few of them. Such women encourage other budding women entrepreneurs to turn their dreams into a reality. However, a big part of chasing your dreams of starting a business, no matter how small, is capital. And as a way of encouraging such businesses, the Indian Government offers a financial boost specifically designed for women entrepreneurs. Here are some of the available government schemes for developing women entrepreneurship:
1. 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.
- 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
- This loan must be repaid within 7 years
- The base rate of interest on this loan is 10.25% to which an additional 2% is added, making the rate of interest 12.25%.
Related: 5 Women-specific financial products you must take advantage of today
2. Annapurna Scheme
If you want to have your own food catering business, and need a financial leg up, this is a suitable scheme to consider.
- Sanctions loans of up to Rs. 50,000
- 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
3. Stree Shakti:
Have you been a part of Entrepreneurship Development Programmes (EDPs)? This package could be what you need to give your business a boost.
- 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
- Offered by State Bank of Mysore
Related: 7 Entrepreneur and Celebrity mothers share their secrets to success
4. Orient Mahila Vikas Yojana Scheme:
This government scheme for woman entrepreneur aims at providing ladies with the capital they require for starting small businesses.
- 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 case of SSI (Small Scale Industries), up to an amount of Rs. 25 Lakhs, a collateral is not needed.
- This scheme was initiated by Oriental Bank of Commerce.

5. 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.
6. 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
- Additionally, her family’s yearly income should be Rs. 45,000 or less
- No income limit exists 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 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.
7. Cent Kalyani Scheme:
This loan scheme is ideal for women who manage SMEs or is involved in agricultural work or engages in retail trading.
- Loans of up to Rs. 100 Lakhs are sanctioned
- 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
8. Mahila Udyam Nidhi Scheme:
Launched and offered by Punjab National Bank, this loan aims to help women set-up new projects. It mainly targets the small-scale sector and promotes upgrading and modernisation of existing projects.
- 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
Related: Tips for women entrepreneurs to fund their businesses
9. Mudra Yojana Scheme for Women:
This scheme aims at providing financial support to women entrepreneurs in India who want to open a day-care centre, beauty salon or a similar small venture. Additionally, the scheme is especially beneficial to a group of women interested in opening a business.
- Loans starting from Rs. 50,000 up to Rs. 50 Lakhs are sanctioned
- No collateral or guarantors are required if the loan amount is less than Rs. 10 Lakhs
- Women must apply for a loan under the Shishu, Kishor or Tarun plans
- 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
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