India’s entrepreneurial landscape is witnessing a remarkable transformation, with women entrepreneurs emerging as powerful drivers of economic growth. The country’s socioeconomic framework is increasingly conducive to their success, thanks in large part to various government initiatives designed to support female-led businesses. One of the most critical forms of support is financial assistance, and the Indian government has introduced a range of business loan schemes specifically tailored for women. This blog provides an overview of the most prominent small business loan schemes available to women entrepreneurs in India.
Access to finance is crucial for any business, and this is especially true for women-led MSMEs (Micro, Small, and Medium Enterprises) and startups in India. To bridge the financing gap, the Government of India has launched several loan schemes aimed at empowering women entrepreneurs. These schemes offer both personal and business loans with attractive terms to help women turn their entrepreneurial dreams into reality. Here’s a look at some of the most notable schemes:
The MUDRA (Micro Units Development & Refinancing Agency) loan scheme, under the Pradhan Mantri Mudra Yojana (PMMY), is designed to support women entrepreneurs with debt financing. MUDRA loans come with flexible repayment options and attractive interest rates, and they do not require collateral.
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The Annapurna Scheme provides collateral-free loans up to ₹50,000, specifically targeting women in the catering and agricultural sectors. It allows for the purchase of essential equipment and supplies. The scheme offers a repayment period of 36 months, with the first month being repayment-free.
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The Stree Shakti Yojana, offered by the State Bank of India, provides loans up to ₹5 lakhs to self-employed women and female-led enterprises. Benefits include no security requirement for loans up to ₹5 lakhs and a 0.05% interest rate concession for loans above ₹2 lakhs.
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The Dena Shakti Scheme supports women entrepreneurs in sectors such as agriculture, manufacturing, micro-credit, and retail. Loans up to ₹20 lakhs are available, with a 0.25% interest rate concession.
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The Bharatiya Mahila Bank Business Loan (now merged with SBI) offers financing for various business needs. With loans up to ₹20 crores, this scheme caters to MSMEs and micro-credit sectors.
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The Mahila Udyam Nidhi Scheme, offered by the Punjab National Bank and SIDBI, provides up to ₹10 lakhs in financing for MSMEs. This scheme is flexible, with a maximum repayment tenure of 10 years.
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The Orient Mahila Vikas Yojana Scheme by Oriental Bank of Commerce offers loans between ₹10 lakhs and ₹25 lakhs. It features minimal documentation requirements and a 2% concession on interest rates.
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The Cent Kalyani Scheme, introduced by the Central Bank of India, provides collateral-free loans with varied options like term loans, working capital loans, and overdrafts. Loans up to ₹1 crore are available.
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Interest rates between 7.35% to 8%
The Udyogini Scheme by the Women Development Corporation of India supports women from backward classes and illiterate backgrounds. It offers mentorship, upskilling programs, and financial support for various business sectors.
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Yubi is India’s leading digital corporate debt solutions platform, offering a range of benefits for women entrepreneurs:
1. What loans are available for women to start a business?
Various loans such as MSME loans, term loans, working capital loans, line of credits, and overdrafts are available from public & private banks, NBFCs, rural banks, and micro-financing institutions.
2. What loan options are there to start a small business for women?
Small business loans, micro-financing loans, and micro credits are popular options for meeting different business needs.
3. What is the best possible loan for a woman entrepreneur?
The Cent Kalyani Scheme is considered one of the best due to its CGTMSE coverage, low-interest rates, and high maximum loan amount.
4. What are the government loans for women to start a business?
Prominent government-backed schemes include MUDRA loans under PMMY, SIDBI loans, PSB Loans in 59 Minutes, and Startup India & Stand-Up India loan schemes.
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