Government Financial Schemes that can Help Women Entrepreneurs in India
The Indian startup ecosystem offers a host of opportunities for women entrepreneurs. Women across all sections of society can make use of various government financial schemes to kick start their entrepreneurial ambitions.
So, here are some of the popular government business loans for women entrepreneurs, available for both new and existing businesses.
#1 Bharatiya Mahila Bank Business Loan
Bharatiya Mahila Bank offers collateral free business loan to women entrepreneurs under the Credit Guarantee Trust for Micro and Small Enterprises scheme (CGTMSE). Under this government financial scheme, loans are available for up to Rs. 20 crores for manufacturing units. The rate of interest is 12.25% per annum.
#2 Mudra Yojana Scheme for Women
For single female entrepreneurs or a group of women starting a business, loans are available under the Stree Shakti package for women entrepreneurs. Interestingly, this is one of those government financial schemes that require no collateral or guarantors. Loans are available from Rs. 50,000 to Rs. 50 Lakhs under the Shishu, Kishor, and Tarun scheme at all PSU banks as well as private banks.
#3 Trade Related Entrepreneurship Assistance and Development (TREAD) scheme for women
The Ministry of MSME offers a government-sponsored business lending scheme called Trade Related Entrepreneurship Assistance and Development (TREAD). This scheme offers women entrepreneurs financial grants of up to 30% of the total project cost along with adequate training and counseling. The credit under the scheme is available to women applicants through listed NGOs who have a credible track record of handling funds. The application form is available here: http://www.dcmsme.gov.in/schemes/treadwomen.htm
#4 State Bank of Mysore’s Annapurna Scheme
For those women who are planning to venture into food, catering or food and beverages business, State Bank of Mysore offers help under its Annapurna scheme. One of the popular government financial schemes around, it allows for financial assistance of up to Rs. 50,000 to be paid in monthly installments for 36 months. There is no monthly installment for the first month to facilitate business setup and growth. The rate of interest for the loan is dependent on the prevailing market conditions.
#5 SBI Stree Shakti Package for Women Entrepreneurs
SBI Stree Shakti package for women entrepreneurs allows for financial incentives in the form of subsidized rate of interest. The loans under the scheme are available only if the woman owns more than 50% share in the business undertaking. The minimum loan amount must exceed Rs. 2 Lakhs and the upper limit for the loan under the scheme is Rs. 50 Lakhs. An interest rate incentive with a concession of 0.50% is offered for successful applicants.
#6 Dena Shakti Scheme
Loans are available at Dena Bank from as low as Rs. 50,000 to Rs. 20 Lakhs under the Dena Shakti scheme for women entrepreneurs. The loans come with a concessional rate of interest of 0.25% over the prevailing interest rate and available for all manufacturing, trading and agricultural related businesses.
#7 PNB Mahila Udyam Nidhi Scheme
For women entrepreneurs planning to upgrade their existing projects or starting out afresh, financial assistance is available under the Mahila Udyam Nidhi scheme by Punjab National Bank. The scheme offers loans up to Rs. 10 Lakhs with a maximum repayment timeline of 10 years and a moratorium period of 5 years for easy repayment. The rate of interest varies as per the prevailing market rates at the time of loan application.
Make use of the various government financial schemes available for women across sectors and catalyze your business growth.
KNOW YOUR FINANCIAL QUOTIENT
MASTER PERSONAL FINANCE
Attend a workshop to master what you've always wanted to. We have 13 workshops lined up, just for you!
GET PERSONALIZED ADVICE
Book a consultation with one of our industry leading experts. We offer consultations in 6 major areas of personal finance, customized to your needs.