Top 1o Government Loan Schemes for Women Entrepreneurs

Today’s female entrepreneurs have found success in fields that haven’t received as much attention, including the food, beauty, travel, sanitation, IT, automobile, and even innovation. According to World Bank reports, if 50% of women are employed, India’s GDP could increase by 1.5% percentage points. The Indian government has taken action by introducing loan programs for women. These programs for female entrepreneurs will be very beneficial in helping them secure the funding they need to launch their businesses. Let’s examine all the government programs available to women business owners.

Here are the top 10 Schemes for Women Entrepreneurs

1. Mudra Loan for Women

The government established Mudra Loan for Women as a woman loan program to provide funding for driven female entrepreneurs. They are looking for a business plan for opening a salon, school, tailor shop, etc. For the loan to be granted under this plan, no collateral is needed. A Mudra loan application can, however, be made under certain categories. These are what they are:

Shishu Loan: In the beginning, businesses are only eligible for loans up to a maximum of Rs. 50,000.

Kishor Loan: This loan is for established companies that want to enhance their offerings. The amount of the loan ranges from 50,000 to 5 lakh rupees.

Tarun Loan: When a well-established company is in need of capital and wants to grow, they can apply for the Tarun Loan, which allows them to borrow up to Rs. 10 lakhs.

2. Annapurna Scheme

One of the numerous government programs for women is the Annapurna Yojana. The Indian government provides loans up to Rs. 50,000 for women-owned food catering businesses under this program. The borrowed money could be used to cover working capital needs, such as buying kitchenware, a mixer/cumulative grinder, a hot case, tiffin boxes, etc. The lender is exempt from making the first month’s EMI payment after the loan is approved. The money must be paid back in 36 monthly installments once it has been approved. Based on the market rate and the relevant bank, the interest rate charged is decided.

3. Stree Shakti Yojana

A special government program for women called Stree Shakti encourages entrepreneurship by offering a number of benefits. Women who own a majority of the company are eligible for this loan program for women entrepreneurs. These female business owners must also sign up for the Entrepreneurship Development Programme (EDP) run by the relevant state organizations. Women can take advantage of a 0.05% interest discount under the Stree Shakti scheme on loans worth more than Rs 2 lakh.

4. Dena Shakti Scheme

For women who want to start businesses in agriculture, manufacturing, microcredit, retail stores, or small enterprises, the Dena Shakti Scheme offers loans up to Rs. 20 lakh. This government program for women also offers a 0.25 percent interest rate discount. In addition, women business owners are eligible for a microcredit loan of up to Rs. 50,000.

5. Bhartiya Mahila Bank Business Loan

This public sector banking organization, The Bhartiya Mahila Bank (BMB), administers loan programs for female entrepreneurs up to Rs. 20 crores for working capital needs, business expansion, or manufacturing enterprises. Under this program for loans to women, some of the various plans include:

Shringaar: Homemakers or self-employed women who are planning a start-up can apply for the BMB Shringaar loan to cover their ongoing business expenses. You are not required to offer any collateral security in exchange for the loan.

Parvarish: In a similar vein, the BMB Parvarish loan is for homemakers or self-employed women to open daycare centers. Under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGSTSM) program, the maximum loan amount is Rs. 1 Crore and no collateral is required.

Annapurna: This loan is available to food entrepreneurs between the ages of 18 and 60 who want to launch or grow their small businesses. Its features are comparable to those of the Annapurna scheme offered by the State Bank of Mysore, with the exception that no collateral security is required.

6. Mahila Udyam Nidhi Yojana

The Mahila Udyam Nidhi Scheme, one of the most well-liked government programs for female entrepreneurs, is provided by Punjab National Bank and Small Industries Development Bank of India (SIDBI). The program provides loans up to Rs. 10 lakh to female entrepreneurs who want to launch a new small business and requires repayment within 10 years. The market rates determine the interest rate that is charged.

7. Orient Mahila Vikas Yojana Scheme

Through the Orient Mahila Vikas Yojana, which Oriental Bank of Commerce launched, women who individually or jointly own 51 percent of the share capital of a proprietary concern are eligible for loans. For loans between Rs. 10 lakh and Rs. 25 lakh, collateral is needed. The loan has a seven-year repayment period. A discount on the interest rate of up to 2 percent is also offered by the Orient Mahila Vikas Yojana Scheme.

8. Cent Kalyani Scheme

Women who are self-employed or have businesses already can apply for the Cent Kalyani Yojana, a government program for women. The Cent Kalyani Scheme accepts applications from micro/small businesses such as farming, agriculture, cottage industries, and retail trade. No guarantors or collateral is required as security for this loan, and neither are you. Loan interest rates are determined by market rates. The loan will have a maximum seven-year repayment period.

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.

10. Pradhan Mantri Rozgar Yojana

The Pradhan Mantri Rozgar Yojana (PMRY), one of the many government programs for women, seeks to give the country’s educated youth opportunities for self-employment. The 1993 program gives unemployed Indian youth a loan amount to start their own business project, which then opens up opportunities for other people to find work. Manufacturing, trade, services, and other approved business sectors are just a few of the ones for which the government program offers financial support. You can apply for a loan up to Rs. 1 lakh without putting up any collateral. The loan can be repaid over a period of three to seven years.

It is critical to first identify the issues that women entrepreneurs in the nation face in order to develop solutions. The various government programs for women can be used to address these issues once they have been identified.

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