loan for women

Funding Options for Women to Start a Business in India 

Business & Finance

The number of women entrepreneurs in India is significantly low compared to the start-ups led by men. According to the survey performed by Stand-Up India, there are only 13.6 per cent women entrepreneurs.

This adds up to 8 million women entrepreneurs while the total number of male entrepreneurs have crossed over 50 million.

To spur the growth of women entrepreneurs financial institutions in India have introduced schemes to provide loan for women and help them expand their start-ups.

The Government of India has also set up new schemes for women who are willing to foray in business sectors. Through these assistance programmes, women entrepreneurs will receive financial aid from various secured lending sectors that include financial institutes and NBFCs to meet their requirements related to growing their business.

The financial schemes available for women are mentioned below –

  1. Mudra Loan Scheme
  2. Annapurna Scheme
  3. Udyogini Scheme
  4. Shree Shakti Package For Women Entrepreneurs
  5. Dena Shakti Scheme

Mudra Loan

The Mudra Yojana scheme introduced by the government of India provides financial assistance to women who are willing to set up their own trading business on a small scale. The loans can also be availed to finance small business sets ups, including beauty parlours, teaching centres etc. applicants can also opt for this funding if they are starting a joint venture.

Mudra loan amount ranges from Rs. 50,000 to Rs. 50 Lakhs. An applicant, who is willing to renovate her business set up or is planning to expand her trade, is eligible for credit advances up to Rs. 10 Lakh.

Applicants can alternatively apply for a business loan from reputed financial institutions and NBFCs like Bajaj Finserv to start their business ventures. It includes exciting features for the borrower with easy repayment of the loan. Loan seekers can also enjoy the advantage of zero collateral, thus simplifying the process of availing credit.

Annapurna Scheme 

This financial scheme is concerned to provide loan for women entrepreneurs who are intending to start their own catering business. The fund availed from this loan can be used to purchase the kitchenware including appliances, utensils and kitchen furnishing.

For securing this loan the applicant has to produce collateral, after which they can repay the loan amount in 36 instalments. If the borrower fails to repay the loan within the stipulated time, the lending institution has the authority to forfeit the property left as collateral.

Udyogini Scheme 

Women entrepreneurs, who are linked in a trade related to agriculture, retail stores or any other small scale business, can avail fund of up to Rs. 1 Lakh from this scheme.

Also, the gross income of the applicant’s family has to be under Rs. 45,000 to secure the loan amount. Applicants who are disabled/widowed can avail an extra credit of Rs. 30,000 under this scheme.

Shree Shakti Package for Women Entrepreneurs

This scheme is meant to provide loan for women entrepreneurs who hold partnership in organisations and requires financial aid to advertise and market their small business.

If the company is registered under Entrepreneurship Development Programmes, then the borrower can avail an interest concession up to 0.05% on the loan amount at the time of repayment.

Dena Shakti Scheme 

Through this scheme women, entrepreneurs can avail a loan of up to Rs. 20 Lakhs. The borrower has to be associated with an organisation working with agriculture, retail stores and any other small business setup.

The amount is delivered (in small batches of Rs. 50,000) to the loan seekers who do not have access to secured lending services to meet specific business-related requirements. 

The above-mentioned schemes are designed in a way that would empower women, who are suffering from a lack of financial strength and also generate employment options for the youth. 

Leave a Reply

Your email address will not be published. Required fields are marked *