Top 7 Startup Business Loan For Women Entrepreneurs In India
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
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.
2) Annapurna Scheme
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.
3) Cent-Kalyani Scheme
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.
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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.
5) Dena Shakti Scheme
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.
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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.
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.
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