Best Business Loans for Women Entrepreneurs

As entrepreneurship ventures have been steadily increasing, the number of women entrepreneurs is on the rise in the startup-up ecosystem of India. Therefore, banks are also going ahead and offering loans customized for women. Moreover, are now exclusive schemes provided by a number of banks which help in setting up of a business.

Here are some of the Popular Women Entrepreneur Loan Schemes.

 The State Bank of Mysore offers two schemes for women.

Annapurna Scheme - a loan up to Rs 50,000. Specially designed for women in the food industry, it can be used to buy all the essentials needed for a kitchen business. Also, the repayment can be done over three years.

Stree Shakti - this loan is offered to individuals who have been through the Entrepreneurship Development Program (EDP), of 6-8 weeks. It offers loans up to rupees fifty lakhs. However, to avail this loan the applicant has to own 51 per cent or more in the enterprise.

 The Bhartiya Mahila Bank

This is a three-year-old venture. But today has set up of 45 branches all over India. It specifically aims at underprivileged, unbanked, and neglected women, who want to start their own companies or businesses.

BMB Annapurna, is similar to SBI’s scheme and aims at funding small enterprises in the food business. The money thus given can also be used to purchase food capital requirements. For this, the applicant has to be between 20 and 60 years of age.

BMB Parvarish- is for the woman who wants to start a daycare centre. It has the tenure of pro five years, and at the interest rate of 12.5%.

BMB Shringaar is helpful for women who want to set up a small business, that of beauty parlours, spas or a salon. It can be repaid over 7 years and has an interest of 12.25%. However, the applicant has to be between 20 and 60 years of age.

Dena Shakti Scheme

This is a scheme, provided by Dena Bank, is particularly devised for women in the agricultural, manufacturing, micro-credit, retail stores, or small enterprises. Furthermore, under this women get a 0.25 per cent reduction in the interest rate.

Udyogini Scheme

This scheme is offered by Punjab and Sind Bank. It helps women by giving them loans at a lower interest rate, and under fairly liberal terms.

It is designed for women with small businesses, and also to help promote agricultural activities, which further help women to start new businesses, or expand on existing ones.

Cent Kalyani Scheme

Offered by the Central Bank of India, it has no collateral requirement. Further, the loan amount can go up to 100 lakhs. It's available for experienced, new or self-employed businesswomen who is above 18 years of age. However, smaller entrepreneurs and retail stores are also encouraged to avail the loan. It can be repaid over 7 years.

Mahila Udyam Nidhi Scheme

Launched by the Punjab National Bank, it offers financial assistance to business women, up to 10 lakhs. Moreover, this loan can be repaid over a period of 10 years.

Mahila Coir Yojna

This scheme provides financial assistance to a rural women, who are involved with coir works. Also, there is a provision of un-motorized and motorized traditional ratts (advanced spinning charkhas) that are required for the spinning of the coir. 75%of the motorized ratt’s total cost, ‘provided by Coir Board. However, the other 25% raised by institutions.

Trade Related Entrepreneurship Assistance and Development (TREAD) Subsidy Scheme for women.

This is provided by the Ministry of Micro, Small and medium enterprises. Under this they provide a total of 30% of the total project cost. The scheme aims to help women who don’t receive any financial assistance from banks.

Picture Credit: egalitatepepiatmuncii.ro

Also Read: Bengaluru, Delhi Best Cities For Women Entrepreneurs: Dell Index 2017

Navina Singh is an Intern with SheThePeople.TV