Government loan schemes for women entrepreneurs
With the Indian economy growing at a faster pace, a vast number of women have started entering the workforce. Not just that they are increasingly becoming job creator thanks to women’s entry into entrepreneurship.
Even the governments, whether central or state have started encouraging women to become entrepreneurs by providing them with small business loans. These business loan for new business, especially for women, will help them to enter the formal sector of the economy and become financially independent.
In order to facilitate and empower women in setting up their own business, central and state governments have launched various schemes of business loan in the last few years.
Here is a list of some schemes below:
Mudra Yojana provides small business loans from Rs. 50,000 to Rs. 10 lakh to non-cooperate, non-farm small/micro-enterprises. Mudra loans can be given by commercial banks, regional rural banks and non-banking financial institutions.
Mudra loans have a special focus on female entrepreneurs who want to set up small businesses like a beauty parlor, tailoring shop, etc. Under Mudra loans, a women entrepreneur does not need to provide collaterals for security and the loan can be applied online.
Mahila Udyam Nidhi Scheme
If any female entrepreneur wants to avail a business loan for setting up her business, they can avail the Mahila Udyam Nidhi Scheme. It comes under the Small Industries Development Bank of India (SIDBI).
Under this scheme, a female entrepreneur can get loans of up to Rs. 10 lakh for a new or existing business. Interest rates may vary as per the government policies.
Stree Shakti Package
In order to avail this scheme, the women must have more than 50 % share in the business. A women entrepreneur can get up to Rs.20 Lakh under this scheme and if the loan amount taken for the small sectoral unit is below Rs.5 lakh than no security is taken.
Under Trade related Entrepreneurship Assistance and Development (TREAD) scheme which come under the Ministry of Micro, Small and Medium Enterprises, the government provides women entrepreneurs with finance and training.
Under this scheme, the government covers 30% of the total cost, while lending institutions will give the rest 70%. Apart from that, the government will also provide training to women entrepreneurs through an NGO and cost will be borne by the government.
Bhartiya Mahila Business Bank Loan
This scheme was launched through Bhartiya Mahila bank, especially for women entrepreneurs. The maximum loan amount that can be applied under this scheme is Rs.20 crore for manufacturing enterprises and loans up to Rs.1 crore will be collateral-free.
This business loan has the maximum repayment tenure of 7 years as of now.
This scheme is applicable for those women who engaged in agriculture and other small business. Under this scheme, small business loans are provided to women who otherwise have to depend on money lenders.
A loan amount of up to is Rs. 1 lakh is provided under this scheme, but the amount can vary depending on the state governments. The scheme is applicable to the household of a female applicant whose annual income is less than Rs. 1 lakh.
Apart from the above list, there are various other government loan schemes for women entrepreneurs that can be taken through banks and financial institutions.