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India has witnessed a startup boom in the recent decade. A new generation of women entrepreneurs has successfully tapped into lesser-explored sectors from food, beauty, travel, sanitation, IT, automobile and even innovation. However, the lack of social and financial support can be a significant hurdle in setting up and running a business. To make things easier for women, the government of India has stepped up by introducing loan schemes for women. These schemes for women will be quite helpful in getting the financial assistance required for their entrepreneurial journey. Let's have a look at all the government schemes for women entrepreneurs.

Government Loan Schemes for Women Entrepreneur

Below we have provided a list of startup business loans for womens entrepreneurs:

  • Mudra Loan for Women
  • Annapurna Scheme
  • Stree Shakti Yojana
  • Dena Shakti Scheme
  • Bhartiya Mahila Bank Business Loan
  • Mahila Udyam Nidhi Yojana
  • Orient Mahila Vikas Yojana Scheme
  • Cent Kalyani Scheme
  • Udyogini Scheme

1. Mudra Loan for Women

Mudra Loan for Women was launched by the government to offer financial support for enthusiastic women entrepreneurs. They seek a business plan like starting a beauty parlour, tuition centre, a stitching shop, etc. This scheme does not require any collateral to grant the loan. However, there are categories under which a mudra loan application can be applied. They are as follows:

  • Shishu Loan: For businesses in the initial stage, the maximum loan amount granted is Rs. 50,000.

  • Kishor Loan: This loan is for businesses that are already established but wish to improve services. The amount of loan granted varies from Rs. 50,000 to Rs. 5 Lakhs.

  • Tarun Loan: This loan is for the well-established businesses planning to expand their reach and is short on capital; they can avail as much as Rs. 10 Lakhs for the purpose.

2. Annapurna Scheme

Under the Annapurna Yojana, the Government of India offers women entrepreneurs in food catering businesses loans up to ₹50,000. The borrowed amount could be used for working capital requirements such as buying utensils, mixer cum grinder, hot case, tiffin boxes, working table, etc. After the loan is approved, the lender doesn't have to pay the EMI for the first month. Once sanctioned, the amount has to be repaid in 36 monthly installments. The interest rate charged is determined based on the market rate and the concerned bank.

3. Stree Shakti Yojana

The Stree Shakti package is a unique scheme that supports entrepreneurship among women by providing certain concessions. This Stree Shakti scheme is eligible for women who have the majority of ownership in the business. Another requirement is that these women entrepreneurs be enrolled under the Entrepreneurship Development Programme (EDP) organized by their respective state agency. This Stree Shakti scheme allows women to avail of an interest concession of 0.05 percent on loans more than ₹2 lakh.

4. Dena Shakti Scheme

The Dena Shakti Scheme provides loans up to ₹20 lakh for women entrepreneurs in agriculture, manufacturing, micro-credit, retail stores, or small enterprises. The scheme also provides a concession of 0.25 percent on the rate of interest. Women entrepreneurs can avail of a loan of up to ₹50,000 under the microcredit category.

5. Bhartiya Mahila Bank Business Loan

Implemented by The Bhartiya Mahila Bank (BMB), this is a public sector banking company that offers women entrepreneurs loans up to ₹20 Crores for working capital requirements, business expansion, or manufacturing enterprises. Some of the different plans under the Bharatiya Mahila Bank Business Loan scheme includes:

  • Shringaar: The BMB Shringaar loan applies to self-employed women or homemakers planning a startup or meets their daily business expenses. The loan doesn't require you to provide any collateral security.

  • Parvarish: Similarly, the BMB Parvarish loan is for self-employed women or homemakers to set up day-care creches. The upper limit of this loan can be ₹1 Crore without any collateral security under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGSTSM) scheme.

  • Annapurna: Between 18 to 60 years, food entrepreneurs wanting to start or expand their small businesses can avail of this loan. Its features are similar to that of the State Bank of Mysore's Annapurna scheme, minus that it does not require collateral security.

6. Mahila Udyam Nidhi Yojana

The Mahila Udyam Nidhi Scheme is offered by Punjab National Bank and Small Industries Development Bank of India (SIDBI). The scheme supports women entrepreneurs to set up a new small-scale venture by extending loans up to ₹10 lakh to be repaid in 10 years. The rate of interest charged depends upon the market rates.

7. Orient Mahila Vikas Yojana Scheme

Oriental Bank of Commerce launched the scheme, women with an ownership of 51 percent share capital individually or jointly in a proprietary concern can avail a loan through the Orient Mahila Vikas Yojana. There is collateral required for loans between ₹10 lakhs to ₹25 lakhs. The repayment tenure of the loan is seven years. Orient Mahila Vikas Yojana Scheme also provides a concession on the interest rate of up to 2 percent.

8. Cent Kalyani Scheme

The Cent Kalyani Yojana can be availed by both existing and new entrepreneurs and self-employed women. Micro/small enterprises like farming, agriculture, cottage industries, and retail trade are all eligible to apply for the Cent Kalyani Scheme. You do not have to provide any collateral as security or need any guarantors for this loan. The interest rate on loans depends on market rates. The repayment tenure of the loan will be a maximum of seven years.

9. Udyogini Scheme

The Women Development Corporation has implemented the Udyogini Scheme under the Government of India. This scheme promotes and motivates women's entrepreneurship among the poor by providing financial support to women. This scheme majorly supports and helps illiterate women living in rural and backward areas.

Women entrepreneurs can avail of a business loan at Bajaj MARKETS at attractive interest rates. The loan funds can be used to undertake various business operations, such as expanding your business, acquiring other companies, buying high-value and getting new machinery or equipment, etc. Bajaj Finserv Business Loans are collateral-free, which means you are not required to put your assets on the line for business financing. You can apply for a business loan online and get pre-approved offers for an instant loan without security from Bajaj MARKETS.