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:
- 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%.
- 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
- 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
- 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.
- 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.
- 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.
- 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
- 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
- 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.