Business is meant for people who are ready to take challenges in life. And if a woman decides to take up this challenge, the Government of India is here with lots of supportive schemes to handhold and to ensure the experience is smooth as possible. In the past two decades, the number of women-owned businesses has increased and the reason for this is availability of various schemes by the Government to support their initiatives. Whether it is an existing business or a business idea that is very innovative, there are many banks in India which are ready to offer business loans plus there are quite a lot Government approved schemes.
Women-owned businesses have been a reason for uptick in Indian economic development plus this has increased employment opportunity in the country. Irrespective of how great the business idea is, if there is no sufficient funding for it, the success of it is always in question. With the help of these loans women will find owning a business more realistic and affordable.
Loans for Women owned Small Businesses
Of late, many public and private sector banks have come up with lending schemes for women entrepreneurs. There are many types of loans and schemes that are specifically framed for women entrepreneurs. These schemes are beneficial as they provide relaxation for collateral security requirements as well as rate of interest’ perspective. In most cases, bank loan interest rates for women entrepreneurs vary from 0.25% to 1% only.
- Annapurna Scheme:
Any women who have ownership in a business can enjoy the benefits of this scheme. And this is specific to food catering industry. SBI is the main source for this scheme all over India. The number of beneficiaries reported under Annapurna increased in 2016 by 1,47,538 as compared to 2014-15. The growth is 18.9% in percentage terms.
Some of the key highlights of this scheme are:
- Annapurna scheme was launched in 2000-2001.
- Up to 10 kg food grains is offered for free for individuals aged above 65 years (provided that the person is not getting pension).
- This schemes was launched by Ministry of Rural development.
- This is for women entrepreneurs who are into food catering industry.
- Within 36 monthly installments loan amount should be repaid along with interest.
- The maximum loan amount offered is just Rs. 50,000.
- Collateral and guarantor is essential for this type of loan.
- The rate of interest applicable on loan is according per market rates.
- EMI is free for one month after the loan disbursal.
- Bharatiya Mahila Bank:
If a woman entrepreneur is looking to start a new venture then this scheme is best. Through this scheme preference is given for applicants who are involved in retail sector, Micro loans, loan against property and also SME loans. This is one of the best entrepreneur loans offered for women as compared to other ones. Some of the loans offered through this scheme are SME easy loan, Beauty parlour loan, Creche loan/ child day care centre loan, catering service loan and so on.
Some of the key highlights of this scheme are:
- This scheme was inaugurated in the year 2013 by Former Prime Minister Manmohan Singh.
- Though it accepts deposits for all individuals, preference is given for women applicants.
- After Pakistan and Tanzania, India is the third country to have bank specifically for women.
- The first Bihar branch of Bharatiya Mahila Bank was opened in Pune.
- The account can be opened with zero balance.
- There are 22 branches in India for this bank.
- Net banking facility is also offered.
- While other banks give only 5 free ATM transactions, this bank offers 10 free hits.
- Stree Shakthi Package:
Any women who have more than 50% ownership in a business can enjoy the benefits of this scheme. Though all banks offered this scheme, SBI is the main lender of loans with this scheme. Upto 0.50% concession can be availed by women applicants through this loan only if the loan amount is above Rs. 2 lakhs. In order to eligible for this scheme the woman should have participated in the Entrepreneurship Development Programmes. Any small scale units that are managed by one or more women can avail this scheme. Additional concessions are offered if the women are trained for the business she is going to start. Various training programmes are arranged by SBI bank in order to promote women entrepreneurship. And according awards and recognitions are offered.
Some of the key highlights of this scheme are:
- Minimum financial interest in the business should be 51% for the woman applicant.
- 50% concession is offered on scheme if loan amount is beyond Rs. 2 lakhs.
- It is a must that woman should have participated in the Entrepreneurship Development Programmes.
- This scheme is mostly offered by State Bank of India.
- This scheme is also offered by Nationalized banks, Small Industries Development Bank of India (SIDBI) and State Finance Corporation.
- Training and awards offered through this scheme are Entrepreneurship Development Programmes and TREAD – Trade Related Entrepreneurship Assistance and Development.
- Dena Shakti Scheme:
This scheme is specially offered by Dena bank only for all women entrepreneurs. Upto 0.25% reduction on rate of interest is offered to women on the basis of this scheme. Sectors covered through this loan are manufacturing, agriculture, retail stores, micro-credit and small enterprises. Maximum Rs. 20 lakhs is offered as loan for housing, retail trading and education industry and Rs. 50,000 is offered as micro credit.
Some of the key highlights of this scheme are:
- Dena bank business is mainly in Chhattisgarh and Gujarat.
- Among the various schemes started by the bank for the development of rural area, this scheme is specific for woman.
- Industries covered by this scheme are Agriculture & allied activities, Small Enterprises, manufacturing enterprises, service enterprises which include water transport operators and small road contract, Retail Trade, Micro Credit, Education, Housing.
- Maximum Rs. 20 lakhs is offered as loan for housing, retail trading and education industry.
- 50,000 is offered as micro credit as well as for bank specific schemes.
- Rate of interest is as per RBI guidelines however up to 0.25% concession is offered for women.
- Cent Kalyani Scheme:
Central Bank of India has launched this scheme. Rate of interest will vary according to market rates. This scheme promotes women entrepreneurs who are involved in village and cottage industries, small, micro and medium enterprises, agriculture and any allied activities, self-employed women, retail trade and also government sponsored programmes. Loan is offered upto 1 crore without any guarantor and collateral. If the loan amount is Rs. 10, 00, 000 then rate of interest will be 9.70% + 0.25% = 9.95% and if the loan is for Rs. 10, 00, 000 – 100, 00, 000 then rate of interest will be 9.70% + 0.50% = 10.20.
Some of the key highlights of this scheme are:
- This scheme is offered by Central Bank of India.
- This loan does not require collateral or guarantor.
- Scheme is mainly meant for procurement of machinery or equipment, for meeting capital requirements in the business.
- Scheme is designed for both new and existing women entrepreneurs.
- Woman entrepreneur should be into Micro or Small Enterprises.
- Self-employed women also have opportunity to apply for this loan.
- Maximum loan amount on this scheme is Rs. 100 lakhs.
- Rate of margin on this scheme is 20%.
- Mahila Udyam Nidhi Scheme:
Punjab National Bank launched this scheme and the maximum amount you can get as loan through this scheme is just Rs. 10 lakhs. The borrower has option to repay the loan within 10 years tenure. Small scale sector is targeted with this scheme. Based on the market rates, rate of interest on the loan will be considered. This scheme promotes businesses such as beauty parlours, buying auto rickshaws, day care centers, two-wheelers and cars purchasing.
Some of the key highlights of this scheme are:
- This scheme is offered by Punjab National Bank.
- Scheme is mainly meant for businesses such as beauty parlours, buying auto rickshaws, day care centers, two-wheelers and cars purchasing.
- Scheme is designed women entrepreneurs only.
- Loan tenure is up to 10 years and maximum loan amount is Rs. 10 lakhs.
- This scheme is meant for small sector.
- Udyogini Scheme:
Saraswat Bank promoted this scheme to ensure women entrepreneurs get loans at low rate of interest in an easy manner. This type of loan is offered for retail and small-business enterprises and for agricultural activities. Loan is offered at minimum or no processing fees for women entrepreneurs. Loan up to Rs. 2 lakhs is offered for micro enterprises, loan between Rs. 2 lakhs –Rs. 50 lakhs is offered for small scale enterprises and loan above Rs. 50 lakhs is offered for medium enterprises.
Some of the key highlights of this scheme are:
- This scheme is offered by Saraswat Bank.
- Maximum loan offered is up to Rs. 50 lakhs.
- For low rate of interest loans this scheme is the best.
Make use of the above mentioned 7 schemes to avail maximum benefits. Women entrepreneurs are always encouraged through this offers thus try to make the most use of it.
