Types of Business Loans available for Women Entrepreneur in India

Introduction:

The concept of entrepreneurship has been on rise in India recently. And with the development of the start-up ecosystem women have too given priority to be an entrepreneur. The Government of India and the banking institutions has provided with so many options and loan to support and encourage women to be in entrepreneurship. They can easily avail different loans for business depending upon their purpose or reasons for Business Loan in India. These financial schemes will take them on a very long way to accept the entrepreneurship culture and be successful and more independent at same time.

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Loan for Business: Schemes for women entrepreneur

The Government of India has introduced large number of initiatives for encouraging entrepreneurship among the women. For this, various schemes of loan for business especially for women have been put up in the market. There are nine types of business loans in India schemes which are as follows-

  • Stree Shakti Package for Women Entrepreneurs: Any women entrepreneur who have about 50% share in a firm’s ownership and has also taken part in the Entrepreneurship Development Program (EDP) ran by a state authority or agency can avail this loan for business from the offeror branches of State Bank of India. Also, if the amount of loan is more than Rs. 2,00,000 then 0.50% discount on interest rate of loan is also provided to the applicant.
  • Dena Shakti Scheme: Dena Bank provides with this loan for business specially to those women who need some financial assistance in the field of agriculture, micro-credit, manufacturing, small enterprise and retail sector.
  • Cent Kalyani Scheme: Central Bank of India provides with this scheme for women to start a new venture or expanding their existing business or modifying it accordingly. It can be availed by those in the retail sector, village and cottage industry, MSME, agriculture or self-employed, etc.
  • Orient Mahila Vikas Yojana Scheme: This scheme was launched by the Government of India for supporting individual women who wants start their own enterprises or small businesses like beauty parlour, tuition centres, day care centres, play way schools, etc. there are three schemes under this namely, Shishu, Kishor and Tarun Yojana.
  • Mahila Udyam Nidhi Scheme: The Punjab National Bank has launched this loan for business scheme with an aim to support female entrepreneurs in the small-scale industry. Different plans for day care centres, auto-rickshaws, beauty parlour etc., have been introduced under this scheme.
  • Udyogini Scheme: Women involved in small business enterprise, retail or agriculture can avail this loan from the Punjab and Sind Bank. Their interest rates are concessional and the terms and conditions are flexible too.
  • Mudra Yojana Scheme for Women: Any female holding a 51% share capital in a concerned proprietary either individually or jointly can avail this loan from the Oriental Bank of Commerce.
  • Annapurna Scheme: The State Bank of Mysore provides with this scheme specially to those women entrepreneurs who want loan for business especially, in the food catering sector or industry selling snacks, home cooked meals, packaged food, etc. one can utilise the granted loan amount in order to fulfil the input demands of the business like buying equipment, kitchen utensils, raw materials and tools. An amount of up to Rs. 50,000 can be availed under this scheme which has to be paid in regular EMI for a maximum tenure of 36 months. The rate of interest depends on the market value. To avail this loan for business, a guarantor and a security as collateral has to be pledged.

Bhartiya Mahila Bank Business Loan: If a women entrepreneur is seeking a loan to start new ventures in sectors related to retail, MICRO Loans, SME Loans or even loan against property, then this scheme is just perfect for them.

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    Author: Anil Agrawal
    EZYBIZ India Consulting LLP, New Delhi. The firm is business and tax consultancy firm providing consultancy in Taxation, Regulatory, Transfer pricing, Valuation, Corporate funding and Business set up matters. He may be reached at 9899217778 or anil@ezybizindia.in.