March 2, 2024
SOLOBIS

How Women Can Qualify for Small Business Loan in India

business women

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 a grassroot level, often the biggest hurdle faced by women-owned businesses is the lack of capital or business loan for women.

No matter how small a business you have, it can fall flat on its face due to lack of finances. However, the good news is, as a way of encouraging such businesses, the Indian Government offers different sources of providing financial boost specially designed for women entrepreneurs. Some of the available schemes for small business loans for women are as follows:

1. Bharatiya Mahila Bank

It was started as a bank that exclusively focused on providing loans to underprivileged women who intend to start a business of their own. It sanctions loans up to Rs. 20 crores for manufacturing enterprises. Under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) women entrepreneurs can avail a collateral-free loan of up to Rs. 1 crore. This loan for 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 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 have a part of Entrepreneurship Development Programmes (EDPs), you can give a boost to your business with this scheme. It sanctions a loan amount of up to Rs. 50 lakhs. Also, if your loan amount exceeds Rs. 2 lakhs, 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 lakhs, 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 to start a business related to manufacturing goods and agricultural work, they can avail this scheme which sanctions loans of up to Rs. 20 lakhs. The categories include, education, housing, and retail trading. Under the category of micro credit, 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 SC/ST category can get 30% of subsidy of the loan, or Rs. 10,000 (whichever is lower) is 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 to SMEs or are involved in agricultural work or retail trading. Under this scheme, loans of up to Rs. 100 lakhs are sanctioned. No collateral or guarantors are required. 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 upgrading and modernization of existing projects. The interest rate of business loan varies according to market rates. You can avail loans of up to Rs. 10 lakhs. 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 you can easily qualify for it with simple business loan eligibility criteria. Here only 2 documents required for business loan application and you can enjoy services right at your doorstep. With these features, makes this source of capital the most convenient and trouble-free.

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