Government Loans for Women Entrepreneurs in India

Introduction to Government loans for women entrepreneurs

According to statistics and reports, in total India’s festivals, women entrepreneurs comprise 8 million when compared to male entrepreneurs that are about 50 million. With this huge difference in statistics, the Indian government has thought to sponsor some encouraging schemes that would support women entrepreneurs and aid them to improve their condition from starting any businesses to operate them properly. These schemes will also aid women to open a business by themselves and sustain a balance in India’s start-up environment. Moreover, this will provide better opportunities for women who are willing to earn something by working outside the home. This will also help to overcome their financial problems.

A guide to Government loans for women entrepreneurs in India

Moreover, for the perfect implementation of the schemes, banks must offer loans to women entrepreneurs to aid them inaugurating any business easily. In this article, you will understand about few government-sponsored schemes that serve to boost women to get various sources of their livelihood.

Annapurna scheme

The scheme was initiated by the Indian government in the year 2015 on October 31. The initial location of beginning the business was Jaipur district in Bamori village. Under this scheme, women may sell packed food products along with snacks and others. The State bank of Mysore was tied up with this scheme as it provides loan facilities to women. It will provide an amount of 50 thousand to the owner with which they can initiate the business. However, they have to repay the loan money within 36 months in the month’s installment process. With this money, women can purchase utensils and machinery needed in the business. But the interest rate for the loan will be the same as that of the market rate. Only women must have a guarantor or an individual for availing any loan. Thus, in this way, the government enormously supports women.

Orient Mahila Vikas Yojana scheme

The Oriental Bank of Commerce will lend loans to women under this scheme the women with 51% share capital can avail it. According to this scheme, women can avail of loan amounts ranging from rupees 10 – 25 lakhs. In this case, no loan guarantor is needed. For repaying the loan amount, the women will be given seven years. Also, women entrepreneurs are provided with a discount of 2% on the interest rate.

Mudra Yojana Scheme for women

In the Mudra scheme, women who wish to start-small scale business, for instance, running coaching centers, beauty parlor, teller units, and some other similar business can get an easy loan without any guarantor. Here, a currency card is provided to women to use as a credit card. The card will contain 10% of the loan amount. However, three groups of people can apply for this scheme.

Shishu – The loan amount for the children opting for a loan and in this scheme the amount is rupees 50000.

Kishor– Under this class, the loan amount can range from rupees 50000 to 5 lakh. Moreover, the ones who are operating an enterprise can have benefits under this category of the scheme.

Tarun – In this case, the loan rupees are around 10 lakhs. So, this scheme can be an enormous support for women entrepreneurs.

Bharatiya Mahila bank business loan

Women who are willing to initiate their business in the retail sector can approach Indian Women Bank Business Loans. Under this scheme, women can get loans around 20 crores with an extra discount of 0.25%. Moreover, it is 10.15% of the loan amount. Specifically, the best option here in women’s business plan is that about 1 crore loan could be given without the need for any collateral security.

Dena Shakti scheme

If women are interested to grow their business in retail stores, micro-credit, agriculture, manufacturing, and related sectors can avail loans under the power scheme. Here, the loan amount may reach till rupees 20 crores. In this case, women can repay the loan in the EMI scheme.

Udyogini scheme

Women starting from the age of 18- 45 are working in the agriculture sector, in small factories and retail stores may also opt for loan facilities under the Udyogini scheme. Here, women can get avail about 1 lakh loan. But, there are some eligibility criteria, such as if the annual income of the woman’s family opting to start the business is lower than rupees 45000, they can apply for this kind of loan. In addition to this, a 30% subsidy is provided to widows, disabled women who are from to ST and SC category. However, with the support of the subsidy facility women, entrepreneurs can enhance their business properly.

Cent Kalyani scheme

Whether women are interested to begin their business or grow their business, Central Bank of India provides loan benefits to women under the DHS scheme. They provide loans to women under involved in sectors like small and medium enterprises, self-employment, the agricultural segment, etc. It is very beneficial to them and they could avail around 1 lakh loan without the need of any guarantor.

Mahila Udyam Nidhi scheme

The Women Entrepreneur Fund Scheme has been developed by Punjab National Bank for supporting women initiating small-scale business ventures. As per the guidelines of this scheme, women entrepreneurs can repay the loan money in 10 years. As per the MahilaUdyamNidhi Scheme, the amount is given for purchasing beauty parlor equipment, auto-rickshaw, etc. Even two-wheeler vehicle loan schemes are also introduced. So, within the MahilaUdyamNidhi Scheme, they can avail loan up to 10 lakh.

Stree Shakti Package for women entrepreneurs

Through the support of the scheme, the rate of exemption is now better when providing loans to women entrepreneurs. In case, women are provided with a loan of around 2 lakhs, then women can have a 0.50% discount on the interest rate. Moreover, this scheme is also available in almost all SBI bank branches as informed by the government.

Conclusion of Government loans for women entrepreneurs in India

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Therefore, by effective execution of the above-said schemes, the Indian government has supported women entrepreneurs and thus gave many employment opportunities. The different loan scheme facilities, therefore, assisted women to begin a small-scale business. Thereby, it empowers women and assists them to earn on their own.

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