7 Best Business Loan Schemes for Women Entrepreneurs in 2024

There is a huge demand for women entrepreneurs in India, which has led the government to start many new schemes including few which focus on providing startup business loans for women.

According to the Sixth Economic Census that was released in 2018, women constitute around 14% of the total entrepreneurs.

While the number might not look huge in percentage, this is 8.05 million women entrepreneurs in numbers.

Here are 7 startup business loan for women that you should check:

1) Stree Shakti Package for women Entrepreneurs

The Stree Shakti Package is offered by a majority of State Bank of India branches (SBI) in India and focuses on providing a business loan to women in business.

The biggest advantage of this startup business loan for women is that it requires no security for loans up to Rs. 5 lakh.

Further, the bank provides certain concessions, such as providing a lowered interest rate in case the loan exceeds Rs. 2 lakh.

But the biggest disadvantage of this loan is that it’s only available to women who own a stake of 51% or above in the business.

Stree Shakti Package Eligibility:

• Gender: The scheme is specifically designed for women entrepreneurs, so applicants must be women.
• Age: Applicants must typically be between 18 and 55 years of age. However, age requirements may vary by bank.
• Business Ownership: Women applying for the Stree Shakti Package should be either sole proprietors or partners in a business venture. Some banks may also extend the scheme to women directors in companies.
• Business Type: The scheme may be available for various types of businesses, including micro, small, and medium-sized enterprises (MSMEs), retail ventures, service-based businesses, and manufacturing units.
• Loan Purpose: The loan must be utilized for business-related purposes, such as starting a new business, expanding an existing business, purchasing equipment, working capital requirements, or meeting other business-related expenses.
• Credit History: Applicants may be required to demonstrate a satisfactory credit history and repayment capacity to qualify for the loan.
• Documentation: Applicants must provide necessary documentation, including business plans, financial statements, identity proof, address proof, and any other documents required by the bank.

Documents Required for Stree Shakti Package

1. Identity Proof: Aadhar card, PAN card, passport, voter ID, or any other government-issued photo ID.
2. Address Proof: Aadhar card, passport, utility bills, or rental agreement.
3. Business Plan: A detailed business plan outlining the nature of the business, its objectives, market analysis, financial projections, etc.
4. Project Report: A comprehensive project report detailing the project’s viability, estimated costs, expected revenue, etc.
5. Income Proof: Income tax returns, salary slips, or bank statements for self-employed individuals or salaried employees.
6. Bank Statements: Bank statements for the past 6 months to demonstrate financial stability and repayment capacity.
7. Guarantor’s Details: Details of the guarantor, if required by the lending institution.
8. Property Documents: Collateral documents, if applicable, such as property papers, land deeds, etc.
9. Legal Documents: Registration certificates, licenses, permits, etc., depending on the nature of the business.

2) Annapurna Scheme for women Entrepreneurs

Under the Annapurna Scheme, the government provides loan up to Rs. 50,000 to women entrepreneurs.

When seeking out startup business loan for women in India, this is one of the best schemes for women in the agricultural sector.

At present this loan is offered by The State Bank of Mysore and Bharatiya Mahila Bank.

The biggest advantage of this loan is that the women don’t have to pay EMI for the first month once the loan is approved.

The drawback of Annapurna Scheme is that maximum amount you can avail is Rs. 50,000.

The borrower has to repay the amount in EMIs for 36 months with the interest rate that is determined on the market rate.

You also need a guarantor along with the assets of the business being pledged as collateral security.

Eligibility criteria for Annapurna Scheme

1. Age: The applicant must be between the ages of 60 and 70 years.
2. Business Ownership: The applicant should be the owner of a small food catering business or enterprise, such as a food stall, canteen, or catering service.
3. Experience: The applicant should have experience or expertise in the food catering business.
4. Income: The applicant’s household income should be below a certain threshold, as determined by the lending institution.
5. Loan Amount: The loan amount sanctioned under the Annapurna Scheme is typically based on the income generated by the business and the repayment capacity of the borrower.
6. Collateral: The lending institution may require collateral or a guarantor to secure the loan, depending on the loan amount and the borrower’s creditworthiness.

Documents Required for Annapurna Scheme

1. Identity Proof: Aadhar card, PAN card, passport, voter ID, or any other government-issued photo ID.
2. Address Proof: Aadhar card, passport, utility bills, or rental agreement.
3. Business Registration: Registration certificates, licenses, permits, etc., for the food catering business.
4. Business Plan: A detailed business plan outlining the nature of the business, its objectives, market analysis, financial projections, etc.
5. Income Proof: Income tax returns, bank statements, or audited financial statements for the food catering business.
6. Guarantor’s Details: Details of the guarantor, if required by the lending institution.
7. Collateral Documents: Collateral documents, if applicable, such as property papers, land deeds, etc.

Latest Business Loan Interest Rates

Name	Loan Amount(Min-Max) in Rs.	Interest Rate(p.a)
Axis Bank	300000 – 5000000	12 – 36
Bajaj Finserv	300000 – 2000000	12 – 48
HDB Financial Services Ltd.	75000 – 3000000	12 – 60
HDFC Bank	100000 – 7500000	6 – 48
ICICI Bank	100000 – 4000000	6 – 48
IIFL Finance	100000 – 5000000	12 – 36
Kotak Mahindra Bank	500000 – 7500000	6 – 48
Tata Capital Finance	100000 – 3000000	12 – 36
Capital First Prime	100000 – 7500000	12 – 36
Fullerton Finance	100000 – 5000000	12 – 48

3) Cent-Kalyani Scheme For Women

Offered by Central Bank of India, the Cent – Kalyani scheme is for new as well as existing women entrepreneurs.

Women can avail this loan for micro or small enterprises such as home-food delivery or for starting a beauty parlour.

The purpose of this scheme is to provide startup business loan for women and help them meet their day to day expenditure.

Loans up to ?1 crore are sanctioned under this scheme with a margin rate of 20 per cent.

You do not require any collateral security or guarantors for this scheme and the interest on loans depends on market rates.

The loan though is only available for women in SMEs and medium enterprise.

Eligibility Criteria for Cent-Kalyani Scheme

1. Gender: The scheme is typically targeted towards women entrepreneurs or women-owned businesses.
2. Age: The applicant should be of legal age, usually between 18 and 65 years.
3. Business Ownership: The applicant should be the owner of a small or micro-enterprise, including manufacturing units, service enterprises, retail traders, or self-employed professionals.
4. Loan Amount: The loan amount sanctioned under the Cent-Kalyani Scheme may vary based on the nature of the business, the borrower’s requirements, and the repayment capacity.
5. Business Experience: The applicant should have experience or expertise in the relevant field of business.
6. Credit Score: The applicant’s creditworthiness, as determined by their credit score and repayment history, may also be considered.
7. Collateral: Depending on the loan amount and the borrower’s credit profile, collateral or security may be required to secure the loan.

Documents Required for Cent-Kalyani Scheme

1. Identity Proof: Aadhar card, PAN card, passport, voter ID, or any other government-issued photo ID.
2. Address Proof: Aadhar card, passport, utility bills, or rental agreement.
3. Business Registration: Registration certificates, licenses, permits, etc., depending on the nature of the business.
4. Business Plan: A comprehensive business plan outlining the nature of the business, its objectives, market analysis, financial projections, etc.
5. Income Proof: Income tax returns, bank statements, or audited financial statements for the business.
6. Loan Application Form: Completed loan application form provided by the lending institution.
7. Collateral Documents: Collateral documents, if applicable, such as property papers, land deeds, etc.
8. Guarantor’s Details: Details of the guarantor, if required by the bank.

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4) Bharatiya Mahila Bank Business Loan

While Bhartiya Mahila Bank got merged with SBI a few years back, their vision of promoting economic opportunities for women still remains.

Their business loan is to support budding women entrepreneurs who are looking to start new ventures in the fields of the retail, MICRO and SMEs.

Under this scheme, BMB provides startup business loan for women in the retail and manufacturing sector.

They can take a loan up to Rs. 1 crore in case of manufacturing industries and Rs. 5 crores in case of retail and service enterprise.

The maximum loan amount under this loan goes up to ?20 crores with the interest rates of 10.15% and higher.

The biggest advantage of this loan is that there is no requirement of collateral security for a loan of up to ?1 crore.

Further, the loan is not limited to women in SMEs.

Unfortunately, you need to have a minimum of 2 years of work experience if you are self-employed to avail this loan.

For women in co-op, they need to show a minimum of 2 years of business continuity before they can apply for this scheme.

In both these cases, they need to have a take-home income of Rs. 25000/- per month and above to be eligible.

Eligibility Criteria for Bharatiya Mahila Bank Business Loan

1. Individual Business Owner
2. Joint Venture Companies
3. Public and Private Limited Companies
4. Cooperative Society
5. A minimum of two years of professional experience; if self-employed, 6. A minimum of two years of uninterrupted operations
7. The loan completion age is 21 years old at the minimum and 60 years old at the maximum.
8. A monthly minimum take-home pay of Rs. 25,000
9. In the event of HL and LAP, the co-applicant may be the spouse, parents, or child.

Documents Required For Bharatiya Mahila Bank Business Loan

1. Identity Proof: Aadhar card, PAN card, passport, voter ID, or any other government-issued photo ID.
2. Address Proof: Aadhar card, passport, utility bills, or rental agreement.
3. Business Registration Documents: Certificate of incorporation, partnership deed, LLP agreement, or any other relevant business registration document.
4. Business Plan: A detailed business plan outlining the nature of the business, its objectives, market analysis, financial projections, etc.
5. Income Proof: Income tax returns, bank statements, profit and loss statements, balance sheets, or audited financial statements for the business.
6. Loan Application Form: The prescribed loan application form provided by Bharatiya Mahila Bank, duly filled and signed by the applicant.
7. Guarantor’s Details: Details of the guarantor, if required by the bank.
8. Collateral Documents: Collateral documents, if applicable, such as property papers, land deeds, etc.
9. Any other documents as specified by Bharatiya Mahila Bank: Additional documents may be requested based on the loan amount, purpose, and the applicant’s creditworthiness.

 

5) Dena Shakti Scheme for Women

Dena Bank offers this scheme to women entrepreneurs who are in the fields of agriculture, manufacturing, micro-credit, retail stores, or small enterprises.

Under Dena Shakti Scheme, women entrepreneurs can take loan up to Rs. 20 lakh at a concession of 0.25 per cent.

The scheme also offers loans up to Rs. 50,000 under the microcredit category.

The scheme is again limited to women in SMEs and with a cap to Rs. 20 lakh.

Eligibility Criteria for Dena Shakti Scheme

A woman entrepreneur can apply for the Dena Shakti Scheme if she owns more than 50% of a business.

Documents Required for Dena Shakti Scheme

1. Identity Proof: PAN Card, Aadhaar Card, Driving License, Voter ID Card, etc.
2. Address Proof: Aadhar Card, Valid Passport, Utility bill, Property tax bill, etc.
3. Bank account details.
4. One passport size photo of the candidate..

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6) Mudra Yojana Scheme For Women

Mudra Loan Yojana for women has gained a lot of attention after the government started the ‘Make in India’ campaign.

Under this scheme, women entrepreneurs can avail a loan of a minimum of Rs. 50,000 and maximum up to Rs. 10 lakh.

The scheme focuses on providing startup business loan for women in micro-business units, as well as a group of women wanting to start a venture together.

The loan doesn’t require any collateral security and can be availed as per 3 schemes –

i. Shishu scheme

The loan amount is limited to Rs. 50,000 and can be availed by businesses in their initial stages.

ii. Kishor scheme

The loan amount ranges from Rs. 50,000 to ?5 lakhs and can be availed by women who have a well-established enterprise.

iii. Tarun scheme

The loan amount is fixed at Rs. 10 lakhs and it can be availed by businesses that are well established but require further funds for expansion.

The biggest drawback of Mudra yojana is that it’s not offered by all banks. The banks first have to clear the eligibility criteria that are set by the government.

Also, the interest rates for all of these Mudra loan categories vary slightly from bank to bank.

Eligibility of the Mudra Yojna Scheme

1. Age: The applicant must be at least 18 years old at the time of applying for the loan.
2. Business Type: The scheme is primarily targeted towards non-farm income-generating activities, including small manufacturing units, trading businesses, service sector units, and other allied agricultural activities.
3. Loan Amount: The loan amount under the Mudra Yojana Scheme is categorized into three segments: Shishu (up to ₹50,000), Kishor (from ₹50,001 to ₹5 lakh), and Tarun (from ₹5,00,001 to ₹10 lakh). The eligibility criteria may vary based on the loan segment.
4. Existing Loan: The applicant should not have any existing loans under any government-sponsored scheme or any other financial institutions for the same business activity.
5. Credit Score: Applicants with a good credit history are more likely to be eligible for the Mudra Yojana Scheme.
6. Business Plan: A well-defined business plan outlining the nature of the business, its objectives, market analysis, financial projections, etc., may be required to assess the viability of the business.
7. Collateral: The Mudra Yojana Scheme is collateral-free for loans up to ₹10 lakh, making it accessible to small entrepreneurs who may not have assets to pledge as security.

Documents Required for the Mudra Yojna Scheme

1. Identity Proof: Aadhar card, PAN card, passport, voter ID, or any other government-issued photo ID.
2. Address Proof: Aadhar card, passport, utility bills, or rental agreement.
3. Business Registration: Registration certificates, licenses, permits, etc., depending on the nature of the business.
4. Business Plan: A comprehensive business plan outlining the nature of the business, its objectives, market analysis, financial projections, etc.
5. Income Proof: Income tax returns, bank statements, or audited financial statements for the business.
6. Loan Application Form: Completed loan application form provided by the lending institution.
7. Collateral Documents: Collateral documents, if applicable, such as property papers, land deeds, etc.
8. Guarantor’s Details: Details of the guarantor, if required by the bank.

 

7) Orient Mahila Vikas Yojana Scheme

This scheme was launched by Oriental Bank of Commerce for women who hold a 51 per cent share capital individually or jointly in a business.

The scheme provides a loan between Rs. 10 lakhs to Rs. 25 lakhs for women entrepreneurs in the small-scale industries.

No collateral security is required for the above-mentioned loans and the repayment period is of seven years.

Further, this scheme also provides a concession on the interest rate of up to 2 per cent.

Eligibility Criteria for Orient Mahila Vikas Yojana Scheme

1. Age: The applicant must fall within a certain age bracket specified by the scheme, usually between 18 and 55 years.
2. Business Ownership: The applicant should be the owner of a small-scale business or enterprise, such as a micro, small, or medium-sized enterprise (MSME).
3. Experience: Some schemes may require the applicant to have a minimum number of years of experience in the relevant field or industry.
4. Income Level: The applicant’s household income should typically be below a certain threshold, as determined by the lending institution or the scheme guidelines.
5. Credit History: A good credit history may be required to qualify for the loan, demonstrating the applicant’s ability to repay the borrowed amount.
6. Business Viability: The business or enterprise proposed by the applicant should be deemed viable and have the potential for growth and sustainability.

Documents Required for Orient Mahila Vikas Yojana Scheme

1. Identity Proof: Aadhar card, PAN card, passport, voter ID, or any other government-issued photo ID.
2. Address Proof: Aadhar card, passport, utility bills, or rental agreement.
3. Business Registration: Registration certificates, licenses, permits, etc., depending on the nature of the business.
4. Business Plan: A comprehensive business plan outlining the nature of the business, its objectives, market analysis, financial projections, etc.
5. Income Proof: Income tax returns, bank statements, or audited financial statements for the business.
6. Loan Application Form: Completed loan application form provided by the lending institution.
7. Collateral Documents: Collateral documents, if applicable, such as property papers, land deeds, etc.
8. Guarantor’s Details: Details of the guarantor, if required by the bank.

FAQs on Startup Business Loan For Women Entrepreneurs In India

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