Around 14% of entrepreneurs are women among the total 58.5 million in India. Out of these, 1/3rd are employed in the agricultural sector with the others in manufacturing and retail. Women-led businesses also provide employment to more than 13 million individuals in this country.
One of the factors that are behind the low performance of these numbers is business funding. Hence, to help aspirants fulfil their dreams, the Government has introduced several schemes like, specifically for women entrepreneurs.
Some of these include:
- Udyogini Scheme (Maximum loan amount: Rs. 50, 000)
Udyogini scheme is an initiative launched by the Karnataka government. It is meant for women who are involved in agriculture or small businesses.
Flexible interest rates are offered and the age group who can avail it ranges from 18 to 45. The maximum loan amount is kept up to Rs. 1 Lakh. While applying for this scheme, applicants need to present their income documents to the authorities. Average income, which qualifies an individual for Udyogini scheme is Rs. 45,000 per annum.
- Annapurna Scheme (Maximum loan amount: Rs. 50, 000)
Those who have the aspiration to flourish in the food catering industry can avail Annapurna scheme. It is one of the business loans for women that provide up to Rs. 50,000 with a maximum tenor of 3 years. One of the benefits of this loan is that borrowers are exempted from paying their first EMI.
- Mudra Yojana (Maximum loan amount: Rs. 10 Lakh)
This yojana is meant to guarantee women to open their businesses in various sectors such as tailoring, education or beauty spas. Pradhan Mantri Mudra Loan even allows a group of women to begin with their group ventures. One of the significant benefits is that borrowers get respite from providing collateral.
The Mudra loan is divided into three schemes, namely:
- Tarun
- Shishu
- Kishor
Once you avail to this Pradhan Mantri Mudra loan, you can receive a Mudra debit and ATM card.
- Dena Shakti Scheme (Maximum loan amount: Rs. 20 Lakh)
The Dena Shakti Scheme sponsors women entrepreneurs who want to succeed in the arena of small business, agriculture, retail as well as manufacturing. Those covered under this scheme can avail a loan of Rs. 20 Lakh with an interest rebate of 0.25%.
- Mahila Udhyam Nidhi (Maximum loan amount: Rs. 10 Lakh)
Individuals operating small scale enterprises can avail this loan. Repayments are to be made within the tenor of 10 years. The Mahila Udhyam Nidhi is one of the great sources of financing for women business persons. Women can secure funding to purchase automobiles, set-up beauty parlours, daycare etc. The maximum amount available with these loans is Rs. 10 Lakh.
- Cent Kalyani (Maximum loan amount: Rs. 10 Crore)
Individuals who are a part of retail trade, cottage industries, small or medium-sized firms can get an opportunity to be a part of this scheme. No guarantor or security is needed, which proves quite beneficial for those who are left with no assets. Almost Rs. 10 Crore is granted to loan borrowers under Cent Kalyani initiative.
The security for this scheme is covered under CGTMSE except for loans provided to SHGs, educational or training institutions, and retail traders.
The eligibility criteria to avail a business loan are minimalistic compared to similar products available from financial institutions. Women must check the same before applying for a Central or State Government-sponsored scheme.
