Small Business Loans for Women Entrepreneurs

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Business Loans for Women
Business Loans for Women

Nowadays, people have understood and recognized that women’s development is necessary for achieving development goals. In today’s world, women are leading the economies, governments, and organizations. Women have an influence on every aspect of the business. Government and private companies are empowering and promoting women employees.

Sometimes, even after having better skills for the business and having the potential to run a business, women often get discouraged.

There are numerous schemes where small business loans for women are launched in India by the government.

Loan Schemes Available for Women

Many financial institutions have launched business loans for women to support and expand their businesses. Below are some schemes for which institutions can be approached for business loans at low-interest rates:

Bharathiya Mahila Bank –

Shringaar- Under this scheme, women who wish to open a beauty parlor or SPA can avail of the loan. The age criteria for women is 20-60 years and the tenure period is for seven years. Also, no collateral is required under this scheme.

Stree Shakti Package by SBI-

Businesses run by women are eligible and receive loans under this scheme. A women entrepreneur business is in which Women who individually or jointly have a share capital of 51% at least. There is no collateral required up to Rs.10 Lakhs. Loan amounts of up to 25 lakhs can be disbursed under this scheme. Moreover, loans up to Rs.1Cr can be covered under the CGTMSE scheme and also doesn’t require any collateral.

Dena Bank launched the Dena Shakti Scheme-

This scheme with the vision to promote economic opportunity for women. Under this scheme, business loans at low-interest rates are offered with a concession of up to 0.25%. This scheme offers a flexible tenure and can last up to 10 years. One needs to approach Dena bank for the same.

Udyogini Scheme-

Under this scheme, the main vision is to promote women’s entrepreneurship and provide financial assistance. This scheme also promotes micro-enterprises. The applicant must be of 25 to 65 years of age in order to apply, and the earnings of the family should be less than 1.5 lakh power annum.

Cent Kalyani Scheme-

The scheme has been launched by the Central Bank of India with the aim of encouraging women entrepreneurs to start or expand their businesses. An amount up to Rs.1cr can be taken from the bank under this scheme.

PNB Mahila Udyam Nidhi Scheme-

This scheme is offered under the Small Industrial Development Bank of India (SIDBI) with the same aim to empower women. Under this scheme, women can avail of loans up to 10 lakhs to start their own businesses.

Orient Mahila Vikas Yojana-

The scheme is run by Oriental Bank, and women who are entitled to 51% shares are eligible for the scheme. Under this scheme, a woman entrepreneur can get a discount in interest up to 25%. No Collateral is required under this scheme for loans starting from 10 lakhs to 25 lakhs in the case of Small Scale industry. The tenure for repayment under this scheme is seven years.

Mudra Yojana Scheme for Women-

The scheme was launched with the aim of providing financial support to aspiring women who want to start their businesses. A female can avail of a loan amount of up to 10 lakh to start a business. A business loan at low- interest is available under this scheme with no collateral.

The loan schemes which are launched especially for women have discounted interest rates and low processing charges, and with minimum or no collateral.

The loan amount can vary for small businesses from 10 lacs to 1 crore as per the schemes and the financial institution, as per the govt. MUDRA scheme, women can get loans at lower interest rates.

Eligibility

Business loans at low-interest rates can be offered to women between the age group of 20-60 who are planning to start or expand their business. Women who are entrepreneurs or major stakeholders are also eligible to apply for these loans.

Documents Required for Business Loan

  • Identity of the Business owner
  • PAN Card of the Business
  • Aadhar Card
  • Voter ID
  • Address proof of the Business
  • Utility bills not more than three months old
  • Account statement
  • Trade License
  • Lease Agreement

All the schemes mentioned above have a common aim to promote and support women’s entrepreneurship and provide business loans for women who are willing to start or expand their small-scale businesses. These loans can be availed up to the amount of Rs.1 Cr as per the business requirement and profile.

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