Know the 5 Best Business Loan Schemes for Women Entrepreneurs

5 Best Business Loan Schemes for Women Entrepreneurs
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Best Business Loan Schemes for Women Entrepreneurs

In India, entrepreneurship ventures or startups are no longer novel business ideas, and to encourage further growth of entrepreneurial initiatives, prominent Private and Public Sector Banks and NBFCs have launched several business loan schemes specifically for women entrepreneurs. Some lenders even provide business loans and working capital loans to women entrepreneurs at discounted interest rates. 

More and more women are starting their own businesses and becoming entrepreneurs. However, starting a business can be expensive, and many women face difficulty accessing funding. Fortunately, there are business loan schemes specifically designed for women entrepreneurs. Below are the 5 most in-demand loan schemes for women entrepreneurs in India provided by financial institutions.

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Business Loan Schemes for Women Entrepreneurs – April 2023

1. Cent Kalyani from the Central Bank of India

The Central Bank of India offers business and startup loans for women entrepreneurs who are looking to establish a new business or expand/alter their existing one.

Features:

  • Interest Rate Range: 8.70% p.a. – 8.95% p.a.
  • Interest Rate for Loan up to Rs. 10 Lakh: 8.70% p.a.
  • Interest Rate for Loan above Rs. 10 Lakh and up to Rs.100 Lakh: 8.95% p.a.
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Purpose: To meet day-to-day requirements such as the purchase of plant & machinery/equipment, and working capital expenditure.

Nature of Loan: Term Loan fund-based working capital facility – Overdraft/ Cash Credit non-fund-based working capital – Letter of Credit/ Letter of Guarantee, etc.

Loan Amount: Up to Rs. 100 lakhs

Processing Fee: Nil

CGTMSE Coverage: Available

  • Collateral/Security or Third Party Guarantee: Not required, as covered under the Guarantee cover of CGTMSE
  • Insurance: Comprehensive insurance of stock, machinery/equipment, etc with a bank clause
  • Women entrepreneurs who are rendering services to rural and cottage industries, MSMEs, and women working in farming, retailing, and government-backed firms can avail business loans.

Note: As of 10th April 2023, the Bank’s 1-year MCLR stands at 8.45%, and an additional interest concession of 0.25% on the interest rate is available if the account is rated by an external agency.

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2. Annapurna Scheme:

The Annapurna Scheme is a business loan scheme specifically designed for women entrepreneurs who run small-scale business ventures. This loan scheme offers loans up to Rs. 50,000, with no collateral required. The loan tenure is up to 36 months, and the interest rate is fixed at 13.5%. The scheme is available to women who are over 18 years of age and have a business plan in place.

3. Stree Shakti Package:

The Stree Shakti Package is a loan scheme for women entrepreneurs who are in need of funding to start or expand their business. This loan scheme offers loans up to Rs. 50 lakhs, with no collateral required. The loan tenure is up to 10 years, and the interest rate is fixed at 0.5% below the base rate. To be eligible for this loan scheme, the woman entrepreneur must own a majority stake in the business.

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4. Mudra Yojana:

The Mudra Yojana is a government scheme that provides loans to micro and small businesses. This scheme is designed to provide funding to women entrepreneurs who run small businesses, such as retail shops, beauty parlours, and tailoring shops. Loans up to Rs. 10 lakhs are available under this scheme. The interest rate varies depending on the type of loan, and the loan tenure can be up to 5 years.

5. Mahila Udyam Nidhi Scheme:

The Mahila Udyam Nidhi Scheme is a loan scheme specifically designed for women entrepreneurs who are in need of funding to start or expand their business. This scheme offers loans up to Rs. 10 lakhs, with no collateral required. The loan tenure is up to 10 years, and the interest rate is fixed at 12%. The scheme is available to women who are over 18 years of age and have a business plan in place.

To conclude, these are the best business loan schemes for women entrepreneurs in India. These loan schemes provide women entrepreneurs with access to funding to start or expand their business ventures. Women entrepreneurs can choose the scheme that best suits their needs and requirements. With the help of these loan schemes, women entrepreneurs can take their businesses to the next level and contribute to the growth of the Indian economy.

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