Top 10 Business Loan Programs For Women Entrepreneurs In India
Do you own a business as a woman? Would you like to finance the start-up or expansion of your business with a business loan?
Read this article to learn more about the business loan programs for women offered by various financial institutions.
Women entrepreneurs primarily fuel economic growth in India. They offer society different management, organizational and business solutions and open new doors. NGOs and associations play an equally vital role in empowering women alongside the efforts of government and various government agencies.
BNP Paribas International Bank recently released a report on global entrepreneurship which ranked India as having the highest number of female entrepreneurs. India has 49% more women entrepreneurs than any other country in the world.
Women entrepreneurs in exponentially growing sectors have benefited from technological innovation. In the years since the arrival of innovations like wireless internet, cloud technology and smart mobile devices, entrepreneurs could collaborate seamlessly and work from anywhere. Several loan programs for women entrepreneurs exist in India and aim to support women entrepreneurs.
Here are the 10 best small business loan programs in India for women.
1. Stree Shakthi Package – Loan Programs for Women Entrepreneurs
Entrepreneurs who own 50% or more of their businesses are eligible for the Stree Shakthi package. A loan can only be granted to women entrepreneurs who have completed entrepreneurship development programs (EDP) organized by public bodies.
In this program, you will receive all the support you need to start your own business. A 0.5% interest concession can only be obtained under this program if the loan is greater than Rs. 2 Lacs.
2. Annapurna – Loan program for women entrepreneurs
Women entrepreneurs who run their business or company in partnership are eligible for the Annapurna program. Financial assistance will be provided to women entrepreneurs under this program to create catering units. A maximum loan amount of INR 50,000 for this composite term loan.
There is a moratorium period of one month before starting to repay the loan in 36 installments. In addition to financing the purchase of utensils, water filters and other kitchen equipment for the food trade, these loans can also serve as working capital.
To get this type of loan, you need a guarantor. This type of loan has an interest rate determined by the market. The bank requires collateral for this loan. The State Bank of Mysore provided this business loan to women entrepreneurs.
3. Hundred Kalyani – Loan programs for women entrepreneurs
The Central Bank of India manages this program by providing financial assistance to women entrepreneurs. Women entrepreneurs can receive adequate financial assistance under this scheme. Business owners, professionals and the self-employed can apply for a loan from Cent Kalyani. Women entrepreneurs can also take advantage of these business loans for women if they are retail traders, small business owners, entrepreneurs engaged in agriculture and related activities, and participating in village businesses.
4. Dena Shakti – Loan programs for women entrepreneurs
Under the Dena Shakti Scheme, Dena Bank has provided a range of financial services to women-owned businesses. Under this program, you can avail loans with a reduced interest rate of 0.25%.
This program provides business loans to women in manufacturing, agriculture and related sectors. In addition, business owners with microloans, retail stores or small businesses can apply for this loan.
5. SIDBI Mahila Udyam Nidhi
The Mahila Udyam Nidhi (MUN) program of the Small Industries Development Bank of India provides financial assistance of up to Rs. 10 lakh to women entrepreneurs to establish new industrial enterprises in the small-scale sector.
6. Udyogini – Loan program for women entrepreneurs
Punjab and Sind Bank’s Udyogini program provides loans to women entrepreneurs at low interest rates and on favorable terms. The loans are used for the creation of small businesses, agricultural activities and small industries. Retail traders and independent women entrepreneurs can also apply for this loan.
7. Bharatiya Mahila Bank
To help women start a business, Bharatiya Mahila Bank offers loans. Microcredits, loans to SMEs, loans to individuals and real estate loans are business loan products that this institution offers to women.
Through this program, the property can be mortgaged for a loan amount of 20 crore.
8. Stree Shakti Business Loan for Women Entrepreneurs
The State Bank of India has a loan program for women called Street Shakti. This fund is accessible to women who own at least 50% of a business.
A certificate of completion of participation in an Entrepreneurship Development Program (EDP) run by a state industrial training center is not sufficient proof of completion.
9. Mudra Yojana program for women
In India, small businesses can apply for this loan from the government. Small manufacturers, beauty salons, retail stores, etc. can be part of the business.
In the Mudra Yojana program, loans are disbursed according to the loan amount. They are as follows:
- Shishu – up to Rs. 50,000
- Kishor – Rs. 50,000 to Rs 5 Lacs
- Tarun – up to Rs. 10 lakes
10. Orient Mahila Vikas Yojana
Oriental Bank has been running this oriental women’s development program in India for several years. Women are entitled to 51% of the plan share. A woman can benefit from a 25 percent discount on her interest rate under this scheme. Loans of Rs.10 lakhs to Rs.25 lakhs are available for SSI (Small Scale Industries) without collateral. The repayment is spread over seven years. Interest rates can reach 2%
The oriented Mahila Vikas Yojana offers several advantages:
- A 2% interest rate concession was offered to women entrepreneurs.
- A discount of up to 25% is offered to female borrowers.
- This loan has a repayment term of 7 years.
- Loans between Rs 10 Lakh and Rs 25 Lakh do not require collateral.
- A brief description of the Orient Mahila Vikas Yojana program offers its features and interest rate.
* According to Indian government regulations, business loan programs are available for women as mentioned above.