TomorrowMakers

Here are the different ways that women entrepreneurs are backed financially by various government schemes

women entrepreneurs in India

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

How I did it

Saurabh Mehta
CA

Exploring investment avenues and watching my portfolio grow is a hobby, and one that pays quite well.… Read more

Rohit Menon
Art Director

I’m a big spender. So I knew I had to be careful with my money as soon as I started working. If I weren’t,… Read more

Sneha Aswani
Publisher Alliance

I’m a housewife and my husband is a marketing director at an FMCG company. Since he’s very busy, he lets me manage all household expenses and for this he allowed me ready access to as much money as I might need.

While this freedom was great, it also meant I didn’t have to put in much… Read more

Khushboo Mittal
Finance Blogger

Having grown up in a joint family, cooking was a skill I never managed to pick up. So, when I moved to Mumbai for a job, I was suddenly left to fend for myself. I had to figure how to feed myself three times a day, seven days a week. I wasn’t worried though, I was going to Mumbai after all – the… Read more

MOST RECENT