Our guide to getting small business loans will help Indian women who want to start their own businesses. Find out about your financing choices, what you need to do to be eligible, and how to apply.
In recent times, India has seen a number of immensely successful women entrepreneurs who have made it big in their respective fields, right from Kiran Mazumdar Shaw to Ekta Kapoor and many others.
However, at the grassroots level, a lack of funding or women-friendly business loans is frequently the biggest obstacle for women-owned businesses.
No matter how small a business you have, it can fall flat on its face due to a lack of finances. However, the good news is that, as a way of encouraging such businesses, the Indian Government offers different sources of financial support specially designed for women entrepreneurs.
Some of the available schemes for small business loans for women are as follows:
Ways to Get a Small Business Loan for Women in India
open up funding options for women-run businesses in India. Discover more about specific loan programs, government programs, and what lenders need.
1. Bharatiya Mahila Bank
It was started as a bank that exclusively focused on providing loans to underprivileged women who intended to start a business of their own. It sanctions loans up to Rs. 20 crore for manufacturing enterprises.
Under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), women entrepreneurs can avail of a collateral-free loan of up to Rs. 1 crore. This loan for a woman-owned business has to be repaid within 7 years.
2. Annapurna scheme
Women who are keen to start their own food catering business will find this to be of great help. This scheme sanctions loans of up to Rs. 50,000, and the loan should be repaid within 3 years.
In order to avail of this scheme, you need to have collateral in the form of assets and a guarantor. The interest rates vary according to market rates.
3. Stree Shakti
If you are part of Entrepreneurship Development Programs (EDPs), you can give a boost to your business with this scheme. It sanctions a loan amount of up to Rs. 50 lakh.
Also, if your loan amount exceeds Rs. 2 lakh, you can enjoy a concession of 0.50% on the interest rate. Keep in mind that you have to keep 50% ownership in the business for which you want the loan.
4. Orient Mahila Vikas Yojana Scheme
The aim of this scheme is to provide women entrepreneurs with the capital that they need to start small businesses. It offers a concession of 2% on the interest rate, and the loan has to be repaid within 7 years.
If your loan amount is below Rs. 10 lakh, collateral is not needed. For SSI (Small Scale Industries), up to an amount of Rs 25 lakhs, collateral is not needed.
5. Dena Shakti Scheme
Women who are interested in starting a business related to manufacturing goods or agricultural work can avail of this scheme, which sanctions loans of up to Rs. 20 lakh.
The categories include education, housing, and retail trading. Under the category of microcredit, it offers loans of up to Rs. 50,000.
6. Udyogini Scheme
The biggest advantage of this option is the low interest rates on business loans. If your age is between 18 and 45 years, you can get a loan of up to Rs. 1 lakh.
What’s better, widowed, destitute, or disabled women, as well as women belonging to the SC/ST category, can get 30% of the subsidy of the loan, or Rs. 10,000 (whichever is lower), provided. If you belong to the general category, you can enjoy a subsidy of 20% of the loan or Rs. 7500, whichever is lower.
7. Cent Kalyani Scheme
This scheme is best-suited for women who manage SMEs or are involved in agricultural work or retail trading. Under this scheme, loans of up to Rs. 100 lakh are sanctioned. No collateral or guarantors are required. A zero processing fee is a major benefit of this scheme.
8. Mahila Udyam Nidhi Scheme
This loan primarily intends to help women set up new projects. It is mainly targeted at the small-scale sector and promotes the upgrading and modernization of existing projects. The interest rate on a business loan varies according to market rates. You can avail of loans of up to Rs. 10 lakh.
These must be repaid within 10 years. If you are looking for quick business loans that offer you money in 24 hours, look no further than a Bajaj Finserv Business Loan for Women that not only gives you capital up to Rs. 30 lakh but also provides the same at low interest rates and pre-approved offers.
What makes these loans special and different is that they are very convenient to obtain, as you can apply for business loans online within minutes and easily qualify for them with simple business loan eligibility criteria.
Here are only 2 documents required for a business loan application, and you can enjoy services right at your doorstep. With these features, this source of capital is the most convenient and trouble-free.