Top Government Schemes for Women Entrepreneurs

Women Discussing Business Plans

Now is the time to say that there was a time of male mainstream in society. At first, the woman had to do the housework, and the idea of the business was a dream. Time has changed, there is no shortage of women who have grown up beyond many such forms of domination. For example, Indira Nooyi, Chanda Kochhar, Ekta Kapoor, Palguni Nair, Neeru Sharma, and so on. Even our current finance minister, Mrs. Nirmala Sitharaman, is also a witness to women empowerment.

Woman with superpower

 

Come, let's take a look at some of the major government schemes for women entrepreneurs:

1) Bharatiya Mahila Bank (BMB) business loan:

BMB Inaugurated on 19th November 2019 and was merged with State Bank of India on 1st April 2017. This loan is for women who wanted to start their own business. It offered women entrepreneurs business loans up to 20 Crores for manufacturing enterprises with an interest of 10.15% and more. It also offers collateral-free loans up to 1 crore under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) cover. The loans under this bank loan scheme are to be repaid in seven years.

2) Annapurna scheme:

This scheme is for financing women to establish a food Catering Unit for selling tiffin/food/lunch packs etc. It offers loans up to 50,000/- rupees. The amount granted as a loan under this scheme can be used for buying utensils, other kitchen tools, and equipment. The interest rate is depending upon the market rate and the concerned bank. A guarantor is required to secure the loan and it can be repaid in 3 years (36 monthly installments). Once the loan is approved, women don’t have to pay EMI for the first month.

 

Beneficiaries of Annapurna Scheme from 2002-03 to 2014-15
Beneficiaries of Annapurna Scheme from 2002-03 to 2014-15

3) Stree shakti Package:

Women who have 50% share in the ownership of a firm or business and have taken part in the state agencies run Entrepreneurship Development Programmes (EDP) is eligible for this package. The scheme also offers a discounted rate of interest by 0.5% in case the amount of loan is more than 2 lakhs. For tiny sector units no security is required for loans up to Rs. 5 lakhs.

4) Orient mahila vikas yojana scheme:

This scheme is launched by Oriental Bank of Commerce. It ll provide capital for women for starting small businesses. Womens with 51% share in the business are eligible for the loan. Collateral is not needed if loans are between Rs.10 lakhs to Rs.25 lakhs for small-scale industries.Repayment is for 7 years period. And it offers concession of 2% on the rate of interest.

5) Dena shakti scheme:

This scheme is provided by Dena bank to those women entrepreneurs in the fields of Agriculture & allied activities, Retail Trade, Micro Credit, Education, Housing and retail & small business enterprises. There is a concession of 0.25 % on rate of interest. Scheme offers loans up to Rs 20.00 lakhs under retail trade, Rs 20 lakhs under education and housing and Rs 50,000/- under micro credit.

6) Udyogini scheme:

Women entrepreneur aged between 18 to 45, who are involved in agriculture, retail and similar small businesses are eligible for loans upto 1lack under this scheme. And her family annual income should be 45,000 or less to avail this loan.There is exception for widowed, destitute or disabled women. For widowed, destitute or disabled women from SC/ST categories, a subsidy of 30 percent of the loan, up to Rs 10,000, is provided and for women with general category a subsidy of 20% of the loan or Rs.7,500 wichever lower is provided. Panjab and sind bank and KSWDC are offering this loan.

7) Cent kalyani scheme:

This scheme is offered by the Central Bank of India. And is for  women business owners in multiple areas such as SMEs or agricultural work or retail trading. Under this scheme loans up to Rs.1 crore are sanctioned. There is no need of collateral and guarantors. There are no processing fees and interest rate varies according to market rates.

8) Mahila udyam nidhi scheme:

This scheme is offered by Punjab National Bank and Small Industries Development Bank of India (SIDBI). This scheme provides financial assistance of up to Rs 10 lakh to set up a new small-scale venture. It also promotes upgrading and modernization of existing projects. And repayment period is 10 years. SIDBI also includes a moratorium period of maximum 5 years. The interest rate varies according to market rate.

9) Mudra yojana scheme for women:

This scheme offered by nationalised banks under the Pradhan Yojna. Which provides financial support to women entrepreneurs who want to start their own small businesses like day care,beauty salon, tuition, tailoring unit, etc. The loans between Rs.50,000 to Rs.50 lacks are sanctioned under this scheme.For loans below Rs.10 lack there is no need of collateral and guarantors.It has three plans

1) Shishu - Offers loan upto Rs.50,000 for new businesses with interest 1% per month and repayment period is 5 years.

2) Kishore - Offers loan from Rs.50,000 to 5 lacks for well established businesses. Interest depends on bank, scheme guidelines and applicants credit history. Repayment also depends on bank’s discretion.

3) Tarun – Offers loan from Rs.5 lacks to 50 lacks for business expansion. Here also interest depends on bank, scheme guidelines and applicants credit history. Repayment also depends on bank’s discretion.

10) TREAD (Trade Related Entrepreneurship Assistance and Development) scheme

This scheme aims to economic empowerment of women by providing credit (through NGOs), training, development and counseling extension activities related to trades, products, services etc. Government grant up to 30% of the total project cost as appraised by lending institutions which would finance the remaining 70% as loan assistance to applicant women.

Sources :

https://savvywomen.tomorrowmakers.com/wise/government-schemes-can-help-women-entrepreneurs-india-grow-their-small-businesses-article

https://www.mudrahome.com/blog/7-government-schemes-for-women-entrepreneurs/

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