Startup Business Loan For Women In India By Government (Guide 2023)

India has been a country with a startup boom in recent years. With that Indian women are not behind, an emerging generation of female entrepreneurs has tapped into all sorts of businesses ranging from food, beauty, and travel to IT, automobile and innovation. However, we can not ignore the lack of financial and social support can become a very challenging hurdles in setting up new business ideas and running them fluently.

Thus, to make things comfortable for women Indian government provides Startup business loans for women in India via multiple schemes.These schemes are going to be a huge support to provide financial assistance to their independent entrepreneur adventure. 

Which scheme is especially for women entrepreneurs?

Some of the women entrepreneur finance assistance schemes by the government are as follows:

1. Mudra loan for women
2. Stree Shakti Yojana
3. Annapurna scheme
4. Bhartiya Mahila Bank business loan
5. Dena Shakti scheme
6. Mahila Udhyam Nidhi Yojana
7. Orient Mahila Vikas Yojana
8. Cent Kalyani Scheme
9. Synd Mahila shakti scheme
10. Udhyogini scheme

How do I register as a female entrepreneur?

Niti Aayog has started an initiative to provide a better ecosystem for struggling and upcoming female entrepreneurs across the country named The Women Entrepreneurship Platform or WEP.

The Women Entrepreneurship Platform

SIDBI has tied up with Niti Aayog to support this initiative. As an emerging platform, it has been built upon three core principles  Iccha Shakti, Gyan Shakti & Karma Shakti.

Iccha Shakti: representing motivation to aspire a new generation of entrepreneurs to start

Gyan Shakti: representing the provision of knowledge and ecosystem to support women entrepreneurs to assist them to take up startups further

Karma Shakti: representing the provision of hands-on support to eligible entrepreneurs to set up their businesses and scale them up

Registration process

Eligible applicants can self-register themselves via Google or Facebook Id or online application form filing available at the register tab on the Women Entrepreneurship Platform website.

Eligibility 

Women who are at the ideation stage, have started recently with their respective startups and are owners of established startups can register under the scheme.

Corporates, NGOs, Incubators or anyone who can provide support in any form to upcoming women entrepreneurs.

Government Loan Women Empowerment Schemes

Stree Shakti Yojana / What is Stree Shakti package?

Stree Shakti Package is a unique scheme supporting entrepreneurship for women with the provision of certain concessions to them. The scheme is eligible for women that have the majority of the business owners in their name. Apart from that, it is required to enrol themselves under the Entrepreneurship Development Program EDP scheme provided by the respective state agencies for women entrepreneurs. Once successful registration under this scheme women can get avail of an interest concession of 0.05% on all loans above Rs. 2 lacs.

Orient Mahila Vikas Yojana Scheme / What is Orient Mahila Vikas Yojana scheme?

For women with an ownership share of 51% or higher in business capital individual or joint in proprietary concern, the Orient Bank of Commerce has launched a scheme through the Orient Mahila Vikas Yojana. There is, however, a need for collateral for loans ranging between rs. 10 lacs to 25 lacs. The repayment period of the sanctioned loan can be up to seven years. The scheme also gives additional benefits on the interest rates for up to a 2% reduction.

Cent Kalyani Scheme /  What is Cent Kalyani Scheme?

The Cent Kalyani scheme is available for both new entrepreneurs as well as existing ones and self-employed women. Micro entrepreneurship like farming, agriculture, cottage industry and other small business like retail trade is viable to apply for the following scheme. One does not have to provide any security as a collateral bond nor does it require any guarantors for the loan. While the interest rates are decided upon the market structure, the repayment period of tenure can go a maximum of seven years from the sanction date.

Dena Shakti scheme

The Dena Shakti yojana is a loan scheme for women entrepreneurs working in sectors of agriculture, manufacturing, retail stores or small businesses. It offers financial assistance up to rs. 20 lacs. The scheme also provides additional benefits of concession in interest rate by 0.25 per cent. Moreover, for the micro-credit category women can get loans up to rs. 50,000.

Annapurna scheme

Under this scheme, the government offers women in the food industry or catering businesses loans up to r. 50,000. The amount can be used to increase the business reach as well as buy the necessary tools and utensils for business. The sanctioned loan can be repaid in 36 monthly instalments with the exemption of EMI for the first month.

Mahila Udhyam Nidhi yojana

This scheme is provided by the Punjab National Bank and Small Industries Development Bank of India SIDIB. The scheme provides support to new women entrepreneurs to set up their businesses on small-scale ventures with loans of the amount up to rs. 10 lacs with a repayment tenure of 10 years.

Mudra Loan for women

The mudra loan scheme was launched to provide financial support for emerging women entrepreneurs by the Indian Government. There can be many businesses that can apply under the scheme ranging from beauty parlours, tuition centres, and tailor shops to retailers. It does not require any collateral for the loan process. In addition, there are categories which will guide applicants to apply under their specific structure of the business.

Shishu Loan: for the initial stage business category granting a loan to the maximum amount of rs. 50,000.

Kishor Loan: for businesses that are already established for some time and are seeking to develop further and improve their structure, under the category the loan amount varies between Rs. 50,000 to 5 lacs depending upon the businesses. 

Tarun Loan: for well-established business models planning to expand their services and are short on finances, under the category one can avail of up to rs. 10 lacs.

What are the details of Mahila Vikas Nidhi scheme?

SIDBI is providing loans up to INR 1.00.000 for financial assistance to women entrepreneurs and SMEs. This loan can be used to set up a manufacturing, manufacturing or service company.

The credit moratorium can be extended for another 5 years and debt service is allowed for up to 10 years. The loan can also be used to modernize and improve existing production and manufacturing facilities and to further develop technology for the service sector.

Loans up to 25% of the project cost are available under the Mahila Udyam Nidhi program, up to Rs 2.5 lakh per project. Banks make loans, but SIDBI provides loan services.

The applicable interest rates are low and subsidized but vary by institution. Banks are required by law to charge an annual processing fee of 1% for this women’s loan program. Some lending institutions waive this fee. 

What are the details of Bhartiya Mahila bank business loan?

Women who own manufacturing businesses can apply for loans from the Bharatiya Mahila Bank worth up to Rs. 20 crores. Good interest rates are offered on special business loans, and the bank also provides collateral-free loans up to Rs. 1 crore under CGTMSE insurance.

The Bharatiya Mahila Bank is now a subsidiary of the State Bank of India (SBI). The SBI and Central Bank of India have control over the interest rates granted for business loans (RBI).

List of Loans offered by Bharatiya Mahila Bank

• BMB Shrinagar
• BMB SME Esay
• BMB Annapurna
• BMB Parvarish

Which documents are required for Cent Kalyani scheme?

Documents Required for Cent Kalyani Scheme are –

1. Identity Proof

 Voter ID 

Passport

 Driving license

 PAN Card 

KYC documents 

2. Address Proof

 Telephone bill

Receipt of  Property tax 

Electricity bill 

3. Income Proof 

Balance sheets 

Profit and loss account

 Other financial documents 

4. Business Proof 

Profile of business enterprise Letters of Interest, 

understanding, continuity and hypothecation. 

Frequently Asked Questions

Who are the top 10 female entrepreneurs?

India has great women entrepreneurs making billions listed as follows: 

Kiran Mazumdar Shaw: Founder of Biocon Limited

Priya Paul: Chairperson of parks Hotels

Ritu Kumar: Famous Fashion Designer

Vandana Luthra: Founder of VLCC

Suchi Mukherjee: The Founder & CEO of Limeroad

Aditi Gupta: Co-Founder of Menstrupedia

What kind of business can a woman open?

Today women can run almost any business a man can. Some of the popular business ideas for women include personal care products for women, Skincare herbal products, art and handicrafts, clothing apparel business, jewellery and accessories, freelancing, graphic designing or IT-related services and many more to add to the list.  

Can women start a side business from home?

Why not! I highly recommend any woman start something small from home. Today, one can find women in almost any sector, and many women becoming pioneers in entrepreneurship as well. Do small research about your product and business idea and you are all set to go ahead. All the best.

How to get stree shakti loan?

You can apply for the Stree Package Loan scheme by visiting any SBI branch as the State Bank of India has launched the scheme and offers all the benefits and features of the loan. 

Conclusion

The twenty-first century has been the best time for females. With global recognition of domestic business, the world is witnessing the power of women. India too is leading in promoting female entrepreneurs with the support of many government-run schemes and loan opportunities to make this journey as less complicated as possible for interested women entrepreneurs.

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