Financial Schemes Available for Indian Women

 

India continues to see immensely successful women entrepreneurs; Indra Nooyi, Chanda Kochar, and Ekta Kapoor being a few of them. Such women encourage other budding women entrepreneurs to turn their dreams into a reality. However, a big part of chasing your dreams of starting a business, no matter how small, is capital. And as a way of encouraging such businesses, the Indian Government offers a financial boost specifically designed for women entrepreneurs. Here are some of the available schemes:

  1. Bharatiya Mahila Bank: 

Bharatiya Mahila Bank started as a bank that focused on providing finances to underprivileged women who wanted to start their own businesses. It was merged with State Bank of India on March 31st, 2017.

– Loans of up to Rs. 20 Crores are sanctioned for manufacturing enterprises

– Under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), you can avail a collateral-free loan of up to Rs. 1 crore

– This loan must be repaid within 7 years

– The base rate of interest on this loan is 10.25% to which an additional 2% is added, making the rate of interest 12.25%.

  1. Annapurna Scheme

If you want to have your own food catering business, and need a financial leg up, this is a suitable scheme to consider.

– Sanctions loans of up to Rs. 50,000

– Collateral in the form of assets and a guarantor are needed to avail this scheme

– The loan must be repaid within 3 years.

– After the loan is sanctioned, you have a grace period of 1 month before you must start repaying the loan amount

– Interest rates vary according to market rates

– This is offered by Bharatiya Mahila Bank, as well as State Bank of Mysore

  1. Stree Shakti:

Have you been a part of Entrepreneurship Development Programmes (EDPs)? This package could be what you need to give your business a boost.

– Loans of up to Rs. 50 Lakhs are sanctioned

– If your loan amount exceeds Rs. 2 Lakhs, a concession of 0.50% on the

rate of interest is offered

– You must have 50% ownership in the business for which you want the loan

– Offered by State Bank of Mysore

  1. Orient Mahila Vikas Yojana Scheme:

This loan scheme aims at providing women with the capital they require for starting small businesses.

– You must have a minimum of 51% of ownership in the business you want a loan for

– A concession of 2% on the rate of interest is offered

– You must repay the loan within 7 years

– If your loan amount is below Rs. 10 Lakhs, a collateral is not needed

– In case of SSI (Small Scale Industries), up to an amount of Rs. 25 Lakhs, a collateral is not needed.

– This scheme was initiated by Oriental Bank of Commerce.

  1. Dena Shakti Scheme:

This scheme is a solution for those who want to make a business out of manufacturing goods and agricultural work.

– Loans of up to Rs. 20 Lakhs are sanctioned under the category of    education, housing, and retail trading

– Under the category of microcredit, loans of up to Rs. 50,000 are offered

– You are offered a concession of 0.25% on the rate of interest.

  1. Udyogini Scheme:

The main advantage of the Udyogini Scheme is low-interest rates on business loans.

– Loans of up to Rs. 1 Lakh are sanctioned, given the woman availing the    loan is aged between 18 and 45

– Additionally, her family’s yearly income should be Rs. 45,000 or less

– No income limit exists for widowed, destitute or disabled women

– For widowed, destitute or disabled women and women belonging to SC/ST category, a subsidy of 30% of the loan, or Rs. 10,000 (whichever is lower) is provided

– For women belonging to the general category, a subsidy of 20% of the loan or Rs. 7,500, whichever is lower, is provided

– Punjab & Sind Bank started promoting this scheme, and many other banks, including Karnataka State Women’s Development Corporation (KSWDC) offer this loan today.

  1. Cent Kalyani Scheme:

This loan scheme is ideal for women who manage SMEs or is involved in agricultural work or engages in retail trading.

– Loans of up to Rs. 100 Lakhs are sanctioned

– No collateral or guarantors are required

– Another benefit of this scheme is that there is no processing fee

– This was launched and is offered by Central Bank of India

– Interest rates vary according to market rates

  1. Mahila Udyam Nidhi Scheme:

Launched and offered by Punjab National Bank, this loan aims to help women set-up new projects. It mainly targets the small-scale sector and promotes upgrading and modernisation of existing projects.

– Loans of up to Rs. 10 Lakhs are sanctioned

– These must be repaid within 10 years, and includes a moratorium period of maximum 5 years

– Interest rates vary according to market rates

  1. Mudra Yojana Scheme for Women:

This scheme aims at providing financial support to women entrepreneurs who want to open a day-care center, beauty salon or a similar small venture. Additionally, the scheme is especially beneficial to a group of women interested in opening a business.

– Loans starting from Rs. 50,000 up to Rs. 50 Lakhs are sanctioned

– No collateral or guarantors are required if the loan amount is less than Rs. 10 Lakhs

– Women must apply for a loan under the Shishu, Kishor or Tarun plans

– Shishu Plan: For businesses in the initial stages. A loan of up to Rs. 50,000 is sanctioned

– Kishor Plan: For well-established businesses. Loans in the range of Rs. 50,000 to Rs. 5 Lakhs are sanctioned

– Tarun Plan: For expanding a business. Loans of up to Rs.50 Lakhs are sanctioned

This article was first published on Tomorrow Makers.

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