Women are natural at multitasking - a skill set that is most pivotal as entrepreneurs. However, the journey to becoming entrepreneurs from homemakers has been slow due to various socio-economic factors. To change that, the Government of India has come up with various financial schemes to encourage women to pursue their passions. These loan options have attractive features like low interest rate, maximum repayment tenure and low to zero processing fees, to name a few. Listed below are some of the popular
business loan options that women entrepreneurs should know about.
As the name suggests, Annapurna Scheme helps women set-uptheir own food catering unit by granting
business finance of around Rs.50,000 to buy kitchen equipment and utensils. This loan can be repaid in 36 installments and requires security. The scheme primarily focuses on distribution of food among the economically downtrodden sections of the country.
In a bid to make women self-reliant, the Stree Shakti Program emphasizes on empowering women economically by granting them credit for their small businesses. This program ensures that enhanced credit financing opportunities are available to women in rural areas. It is there to raise the income levels of rural women by engaging them in income generating activities. A woman seeking this loan should have more than 51% of the ownership in the business. In short, this scheme helps women make optimal use of their
streeshakti.
Also Read: Government Initiative for SMEs Udyogini Scheme aims at providing subsidized loans to
women entrepreneurs from rural areas. The scheme aims to promote financial empowerment and self-reliance among women. This loan can be taken to start small-scale businesses like bakery, sewing, and dairy. The program also imparts functional skills to women regarding pricing, fund management, business planning, etc. It is there to help women overcome the initial bottlenecks involved in running a business.
- Pradhan Mantri Mudra Yojana Scheme
Under the Mudra Yojana,
women entrepreneurs of non-corporate and small/micro enterprises, can avail loans up to 10 lakhs at affordable rates of interest. This loan is disbursed in three different types:
Shishu,
Kishore, and
Tarun, depending on the funding requirement and the level of growth of the business.
The Cent Kalyani Scheme offers loan amount to women for meeting capital expenditure and working capital requirements. A loan amount of up to 10 lakhs is provided
to
women entrepreneurs from the MSME sector.
- Bhartiya Mahila Business Loan
Indian women in the manufacturing sector can avail this scheme to meet their working capital requirements or to expand their businesses. A concessional rate of interest, reduced by 0.25% is offered to these women entrepreneurs. Initiated in 2013, to mark the birth anniversary of former Prime Minister Indira Gandhi, the maximum cap on the loan amount is Rs. 20 crores. Collateral-free loans are offered up to a certain amount.
Also Read: The Different Types of Business Loans for Women Entrepreneurs To conclude Women who are financially independent can help the society to grow and develop at a faster pace. So, the Government of India has come up with the above-mentioned loan schemes to make finance accessible to women, who can use them to fulfill their business objectives. This way, they can grow and create employment opportunities for other women as well.
