Now is the time to say that there was a time of male domination in mainstream society. At first, the women had to do only housework, and the idea of having a business was like a dream. Times have changed, and there are a lot of women who have come out of the clutches of this domination. E.g., Indra Nooyi, Chanda Kochhar, Ekta Kapoor, Neeru Sharma, and so on.
Our current finance minister Mrs Nirmala Sitharaman is also an example of women empowerment. All these women have turned their dreams into reality. However, to run a business organization, capital is the main requirement.
The Indian government offers a financial boost to women entrepreneurs. Some of those schemes are:
1. Bhartiya Mahila Bank
This bank was started to provide finances to underprivileged women to start their own businesses.
It was merged with the SBI on March 31st, 2017.
It sanctions loans for up to 20 crores for manufacturing enterprises.
Under Credit Guarantee Fund Trust for Micro and Small Enterprise (CGTMSE), you can avail a collateral-free loan of up to 1 crore.
The loan sanctioned must be repaid within 7 years.
The base rate of interest on loans is 10.25% and an additional 2% which makes the total rate of interest 12.25%.
2. Annapurna Scheme
This scheme has been devised for those women who want to start their own food catering business.
Under this scheme, loans are sanctioned up to the amount of Rs 50000.
Collateral in the form of assets and a guarantor are needed to avail this scheme.
The loan must be repaid within 3 years.
After the loan is sanctioned, a grace period of 1 month is given before starting the repayment of the loan.
The interest rate varies according to the market rate.
It is offered by Bharatiya Mahila Bank and State Bank of Mysore.
3. Stree Shakti
This scheme has been devised to give a boost and help the ongoing business to thrive.
If the requested loan amount is more than Rs 2 lakhs, then a concession of 0.5% is provided on the rate of interest.
The women who have applied for the loan must have at least 50% ownership and must have taken part in state-run Entrepreneur Development Programmes (EDP) eligible for this scheme.
For tiny sector units, no security is required for loans up to Rs 5 lakhs.
It is offered by State Bank of Mysore.
4. Orient Mahila Vikas Yojana Scheme
This scheme has been devised to provide capital to start and keep running businesses.
The women applying for this loan must have 51% ownership in the business.
It offers a concession of 2% on the rate of interest.
It has to be repaid within 7 years.
If the loan amount is below Rs 10 Lakhs, then there is no need for collateral.
In the case of SSI (Small Scale Industries) up to an amount of Rs 25 lakhs no collateral is needed.
It was initiated by Oriental Bank of Commerce.
5. Dena Shakti Scheme
It is for those women who want to do a business of manufacturing goods and agricultural work.
Loans are sanctioned of up to Rs 20 lakhs for education, housing and retail trading.
Under micro-credit, loans of up to Rs 50, 000 are offered.
Concession of 0.25% on the rate of interest is granted.
6. Udyogini Scheme
The main advantage of this scheme is low interest rates on business loans.
Loans of up to 1 lakh are sanctioned if the women are aged between 18 to 25 years and are engaged in agriculture, retail and other small businesses.
The yearly income of the applicant’s family should be Rs 45, 000 or less to avail the scheme.
There is no ceiling on the income for widowed, destitute or disabled women.
For widowed, destitute or disabled women and women belonging to SC/ST category, a subsidy of 30% of the loan, or Rs 10, 000 (whichever is lower) is provided.
For women belonging to the general category, a subsidy of 20% of the loan or Rs 7500 (whichever is lower) is provided.
Punjab and Sind Bank started promoting this scheme, and many other banks, including Karnataka State Women’s Development Corporation (KSWDC) offer this loan today.
7. Cent Kalyani Scheme
It is ideal for women who manage SMEs or are involved in agricultural work or retail trading.
Loans of up to Rs. 100 lakhs are sanctioned.
No collateral or guarantor is required for getting the loan sanctioned.
No processing fee is required.
It was launched and is offered by Central bank of India.
The interest rate varies according to market rates.
8. Mahila Udyam Nidhi Scheme
It was launched and offered by the Punjab National Bank. It is also offered by small industries development bank of India.
It aims to help women set up new projects.
Its targets are small scale sector, and it promotes upgrading and modernization of existing projects.
Loans of up to Rs 10 lakhs are sanctioned.
It has to be repaid within 10 years, and it also offers a moratorium period of maximum 5 years.
Interest rates vary according to market rates.
9. Mudra Yojana Scheme For Women
It offers support to women who want to open a day-care centre, beauty salon or a similar small venture. It is also supportive of a group of women who want to open their own business.
It is offered by banks under the Pradhan Yojana.
Loans are provided with a lower ceiling of 5 lakhs and an upper ceiling of 50 lakhs.
No collateral or guarantor is required if the loan amount is less than Rs 10 lakhs.
You can apply for loans under the Shishu, Kishor and Tarun plans.
Shishu: It is for businesses in the initial stage. Loans are provided up to an amount of 50000 Rs. with the interest rate of 1% per month with the repayment period being 5 years.
Kishor: It is for well-established businesses. The loan amount ranges from Rs 50000 – Rs 5 lakhs. Interest depends on bank, scheme guidelines and applicant’s credit history. Repayment also depends on the bank’s discretion.
Tarun: It is for expanding a business. A loan is granted up to the amount of Rs 50 lakhs. Here also, Interest depends on bank, scheme guidelines and applicant’s credit history. Repayment also depends on the bank’s discretion.
TREAD(Trade Related Entrepreneurship Assistance and Development)
This scheme aims to economic empowerment of women by providing credit (through NGOs), training, development and counselling extension activities related to trades, products, services, etc.
Government grants up to 30% of the total project as appraised by lending institutions which would finance the remaining 70% as loan assistance to applicant women.