With the changing phase of the Indian economy, the surge in the number of women entrepreneurs has been remarkable. Accessibility to education, funding via government schemes and financial institutions have enabled more and more women to run a business independently. They are thus not only contributing to the economy’s growth but also helping create new employment opportunities. Nevertheless, starting a business requires a sizable investment, which may not be sufficient, prompting women to look for customised funding options as easy access to finance. To provide respite from this monetary hindrance, several government-backed schemes and other financing options have been introduced to provide adequate funding via business loans for women
Top 5 loan schemes ideal for women entrepreneurs
With an increasing scope for women in utilising their skills in entrepreneurship, availing loans has become considerably convenient. From small businesses to large-scale industries, women can now suitably raise finance to fund business growth, business loans for women being one of the best financial tools.
Listed below are some of the schemes by financial institutions of India which offer outstanding loans for women.
Stree-Shakti scheme was typically introduced to provide sufficient financing for small-scale, women-run enterprises. They offer collateral-free business loans for women upto Rs.5 lakh. The eligibility criteria specify that the owner must hold 50% of the business proprietorship and have enrolled in the Entrepreneurship Development Program. Moreover, the scheme allows 0.05% repayment concession on loans above Rs.2 lakh.
Various government-backed schemes are among the great sources of financing for women business owners. Annapurna scheme is one of such financial sources, which extends loans up to Rs.50,000 to women entrepreneurs especially involved in the catering business.These types of business loans for women are provided against collateral offered as security by borrowers. Also, the amount comes with a repayment period of up to 36 months.
Business loans for women under Mudra yojana
The nationalised lender MUDRA offers this loan via a framework under the Pradhan Mantri Mudra Yojana. This scheme under the Government of India’s ‘Make in India’ campaign sanctions loans up to Rs.50,000 to women planning to start a business at subsidised interest rates.
Businesses in their stages of expansion can also avail advances amounting below Rs.10 lakh without any collateral or guarantor, while higher loan amounts need borrowers to provide sufficient collateral.
This scheme can be availed by both new and existing businesses owned by women as well as other SMEs. It approves business loans for womenuptoRs.1 crore with 20% margin rate. No collateral or guarantors are required when availing loans under the Cent-Kalyani scheme. Moreover, the repayment tenure extends upto7 years.
Bharatiya Mahila Bank business loan
BharatiyaMahila Bank offers women entrepreneurs a loan of upto Rs.1crore with an interest rate concession of 0.25%. This loan, which is a combination of term loan and the working capital loan has a repayment tenure of 7years.
Additionally, lenders like Bajaj Finserv also offer small business loans for women entrepreneurs at nominal interest rates and minimum eligibility. These collateral-free advances available upton amount of Rs.20 lakh can be availed for growth or expansion of an existing business, among other business funding needs.
At the same time, the repayment tenure extends up to 60 months. Such specialised loans for women are among the most suitable options to maintain steady cash flow.Under the lender’s Flexi Loan facility, borrowers can also withdraw the required funds multiple times from a loan amount already sanctioned,and repayment can be made as per business cash flow. Plus, as interest accrues only on the amount withdrawn, the repayment liability remains affordable as well.
Moreover, the lender also provides pre-approved offer for hassle-free loan processing. All you need to do to check your pre-approved offer is enter just your name and mobile number.The offer can be availed on several financial products like personal loans, business loans, and credit cards.
With suitable financing options like business loans for women in place across various stages of entrepreneurship, funding has been remarkably simplified. Nevertheless, before applying for a suitable loan option, make sure to check the specific eligibility requirements to improve your chances of loan approval.