India has progressed amazingly in the field of entrepreneurship, especially in the past decade. As per statistics, 14% of entrepreneurs in India are women. This number is only going to increase in the years to come. Furthermore, this will also create a lot of job opportunities in the country.
Thanks to the Government of India for introducing business loans for women in India, women wanting to step into the business industry can confidently set up a strong foundation that will eventually help the venture be sustainable and also grow fast. These business loan schemes for women will assist them in achieving their dream and becoming fulfilling entrepreneurs in India.
Every business brings along its financial needs. These loan schemes for women entrepreneurs are a building block for them to set up their empires. Here are the top 7 of them:
For women to be eligible for this loan scheme, there is a criterion that they must fulfil. Women should hold at least 51% of the business ownership. The upper limit of the loan amount is INR 25 lakhs.
You won’t require a collateral if the loan amount is below INR 10 lakhs. The scheme applies to women in sectors like agriculture, education, retail, housing, and microcredit industries. The cap on the loan varies and depends on the sector. Additionally, these women must be part of their state agency's EDP (Entrepreneurship Development Programme). The business loan interest rate is below 0.50% if the loan amount is less than INR 2 lakhs. Plus, there is no processing fee.
Mudra Yojna Scheme is a business scheme mainly created for women entrepreneurs planning to launch their businesses. The primary reason why this is one of the best loan schemes for women is that there is no obligation to pay collateral.
The scheme is sub-divided into further sub-schemes:
The repayment timeline is from 1 to 5 years and the processing fee is 0.50% of the total loan amount.
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The WDC (Women Development Corporation) under the Government of India has defined the Udyogini Scheme. The loan scheme assists women financially and motivates them by providing the needful support.
The scheme aims to help women living in rural areas who aren’t literate. Ladies between the ages of 18 and 55 can opt for a loan for up to INR 3 lakh. Women making up to INR 1.5 lakh per annum are eligible to apply for this loan.
The Government of India implemented the Annapurna Yojna Scheme for women who wanted to succeed in the catering business. The loan amount can go up to INR 50,000. Women who opt for this loan can make flexible monthly payments for 36 months.
The goal is to help them sell packaged food like breakfast, lunch, and dinner. The age limit to avail of this loan is between 18 years and 55 years.
The Central Bank of India has taken the initiative to support women entrepreneurs through the Cent Kalyani Scheme. The loan scheme offers loans to women willing to become tomorrow's entrepreneurs.
The loan is primarily for women planning to start their careers by commencing their businesses. With zero processing fee and a collateral-free option, this loan is the best option for women whose work category falls under MSME. The loan limit for women under this scheme could go up to INR 100 lakhs.
Existing and new women entrepreneurs can be a part of this scheme provided by Canara Bank. For eligibility, women should have 50% of the stake in their business. With no processing fee, women can avail of a loan amount of INR 1 crore too, capped at INR 5 crore.
The business loan interest rate is 10.25% for loans up to INR 10 lakhs. If the loan amount is beyond INR 10 lakhs, a discount of 0.25% is applicable on the additional amount. Moreover, they also provide a free credit card to ensure the functional requirements are sincerely met.
Women who have at least 51% of share individual or joint can be a part of this loan scheme launched by Oriental Bank of Commerce. However, collateral is needed for loans between INR 10 lakhs and INR 25 lakhs. The loan must be repaid within 5-7 years. The Orient Mahila Vikas Yojna Scheme provides a discount of 2% on the interest rate.
Taking up a business loan for women in India hasn’t always been simple. However, with the introduction of loan schemes, it has become easier than before to get started.
Fullerton India provides business loans for women in India and other individuals aspiring to start their own business. With practical solutions and approaches, we aim to provide custom-made solutions to you. Also, once you are granted the loan, you can use the business loan calculator to calculate the lump sum amount you will need to pay eventually. Make the next big move by starting your own business!
*Terms and Conditions apply. Loans are disbursed at the discretion of Fullerton India.