6 Helpful Indian Loan Schemes for Female Entrepreneurs

According to a Google and Bain & Company report, up to 15.7 million women-owned companies make up 20 percent of the country’s enterprises. In fact, the latest data highlights that women entrepreneurs have employed approximately 22-27 million Indians. Consequently, it is only fair for deserving women to receive business loans at affordable schemes so that their success can simultaneously make the country’s economic standing stronger. Listed below are six easy credit options for women entrepreneurs to drive towards their dreams well-financed.

• Annapurna Scheme – This particular women entrepreneur’s loan supports catering businesses by offering up to INR 50,000. The lendee can repay the amount within 36 monthly instalments, with one month of EMI-free period after the loan gets disbursed. While the interest applicable is as per the market rate, you will need a guarantor and assets as collateral.

• Stree Shakthi Package – This is a loan scheme for women who own 50 % ownership in a firm or business. Most State Banks offer the Stree Shakthi Package with a loan amounting up to INR 5 lakh. Additionally, if your loan amount exceeds INR 2 lakh, you automatically become eligible for a 50 % concession on the interest charged. The only required eligibility criteria is you should have been a part of Entrepreneurship Development Programmes run by state agencies.

• Personal Loans – Although this one does not fall under the loan schemes category, personal loans for women serve various business purposes like boosting working capital, paying off bills, and more. These quick-disbursal and collateral-free loans come with comparatively less stringent eligibility criteria that are ideal for short-term financial requirements.

• MUDRA loan for women – Pradhan Mantri MUDRA Yojana offers, loans for women that can amount to INR 10 lakh. It is a scheme for women who own and run non-corporate, non-farm small or micro-enterprises. There are three primary interventions in MUDRA, namely Shishu, Kishore, and Tarun. Each of which determines the development and funding needs of the beneficiary.

• Mahila Udyam Nidhi Scheme – Thisbusiness loan for women in India primarily supports entrepreneurs operating in small scale sectors. Launched by Punjab National Bank, it offers a loan of up to INR 10 lakh. It is a soft loan with market-friendly interest rates that get revised periodically, and you can repay it over a tenure of 10 years. Women-owned businesses that can take help from this scheme include beauty parlours, day-care centres, purchase auto-rickshaws, two-wheelers, and cars.

• Udyogini Scheme – Promoted by Punjab and Sind Bank, the Udyogini scheme offers loans for women entrepreneurs in India who have undertaken agricultural activities, retail, and small business enterprises. The loans are available at lower interest rates and flexible repayment terms. For women between the ages of 18-45, the maximum amount of loan offered under this scheme is INR 1 lakh.

While self-financing is always an option, it is crucial to know and be able to avail the benefits of such helpful schemes so that you and your business can remain financially independent and stable.