From Mudra Yojana to WEP: 10 Financial Schemes for Women to Start Business in India
Starting a business and ensuring its sustainability is not easy for women. Without support from family and without financial backing, it can be a daunting task for women to reach their dreams. However, many banks have become a strong pillar of support for women entrepreneurs. Along with the changing times, the government and banks have introduced several good schemes to eliminate barriers restricting women’s progress. In this article, let’s explore 10 such schemes that can benefit women in their business ventures.
1. Pradhan Mantri Mudra Yojana
This scheme, launched by the central government in 2015, provides loans ranging from INR 50,000 to INR 50 lakh to women who want to start small-scale businesses. If the loan amount exceeds INR 10 lakh, collateral is required. The interest rate depends on the bank. Financial institutions and banks facilitate the loans under this scheme. There are three categories under this scheme: “Sishu” for loans up to INR 50,000, “Kishor” for loans between INR 50,000 and INR 5 lakh, and “Tarun” for loans between INR 5 lakh and INR 10 lakh.
2. Annapurna Scheme
State Bank of Mysore and Bharatiya Mahila Bank provide loans up to INR 50,000 to women who want to start food-related businesses. This loan can be used for purchasing basic equipment and raw materials. The loan repayment period is three years, and a personal guarantee is required. The repayment starts in the second month, and the interest rate may vary.
3. Trade Related Entrepreneurship Assistance and Development (TREAD)
This scheme is sponsored by the Ministry of Micro, Small, and Medium Enterprises (MSME). Its main objective is to provide training and loans to rural women, enabling them to develop their skills and become independent entrepreneurs. Under this scheme, loans up to INR 5 lakh can be obtained. If the government provides 30% of the loan amount, the financing institution covers the remaining 70%.
4. Shree Shakti Package
This scheme was initiated through the Empowerment Development Program of the State Bank of India (SBI). Women who own a 50% or more share in a business can avail loans up to INR 50 lakh from the bank. The interest rate is 11.2% for loan amounts less than INR 2 lakh and 10.7% for loan amounts above INR 5 lakh. Collateral is not required for loans less than INR 5 lakh.
5. Bhartiya Mahila Business Bank Loan
This scheme was introduced after the merger of Bhartiya Mahila Bank with the State Bank of India (SBI). It is best suited for women who want to start large-scale businesses. Loans up to INR 20 crore are provided, and collateral is not required for loans up to INR 1 crore. The loan can be repaid over a period of approximately 7 years.
6. Dena Shakti
Under the Dena Shakti scheme, loans up to around INR 20 lakh are provided. This scheme benefits women involved in agriculture, retail, manufacturing, and small enterprises or micro-credit organizations. Dena Bank follows the guidelines of the Reserve Bank of India (RBI) while providing loans under this scheme.
7. Udhyogini
Udhyogini is a scheme that provides loans through subsidies to women in rural and underdeveloped areas to start businesses. In the agriculture sector, interest-free loans are provided. The scheme primarily focuses on sectors such as fisheries, groceries, trailering, poultry, dairy, and bakeries. Loans up to INR 3 lakh can be obtained, and the government provides approximately 30% subsidy. To be eligible for this loan, the family income should be less than INR 1.5 lakh per annum.
8. Cent Kalyani Schemes
The Central Bank of India offers loans without collateral to women entrepreneurs, providing loans up to approximately INR 1 crore. Women engaged in micro, small, and medium enterprises, retail trading, or any agricultural practices are eligible for this loan. The loan primarily focuses on capital expenditure and can be repaid over a period of around 7 years.
9. Mahila Udyam Nidhi
This scheme was launched by the Small Industries Development Bank of India (SIDBI), in association with Punjab National Bank. Loans up to INR 10 lakh are provided, and the repayment period extends up to 10 years. This scheme is beneficial for small-scale businesses.
10. Women Entrepreneurship Platform
SIDBI and Niti Aayog have launched this program, which consists of three major schemes: “Icha Shakti” to motivate women, “Gyaan Shakti” to provide knowledge, and “Karma Shakti” to offer hands-on experience to women entrepreneurs.
These financial schemes have opened doors of opportunity for women entrepreneurs in India. By taking advantage of these schemes, women can turn their business dreams into reality and contribute to the economic growth of the nation.
