9 Financing Schemes For Female Entrepreneurs

Over the past few years, India has record growth in women entrepreneurship and more women are pursuing their career in this direction. The startup ecosystem in India is seeing a rapid growth in the numbers of Female Entrepreneurs.  We can clearly see them breaking the barriers of Stereotypes of Indian society and emerging as Industry leaders. While it’s fascinating to see these entrepreneurs leaving their high-profile jobs as well as some stepping out of the four walls of their homes and joining the pool of Entrepreneurship, what concerns us is that some of them are still failing and struggling in their journey. While there are many factors affecting their course of action, lack of financial support and mentorship is one of the major reasons for it. However, the Government of India has realized this problem and making major attempts to support the female entrepreneurs by providing a number of schemes that would help these startups to jumpstart the entrepreneurial journey. Under these schemes, various Banks and Organizations are offering specialized loans for women entrepreneurs that have slightly different and more flexible set of terms and conditions pertaining to collateral security, interest rates, etc.

Annapurna Scheme

Offered by the State Bank of Mysore, this loan is for Female Entrepreneurs who are venturing into Food Catering Industries in order to sell packed meals, snacks, etc. It offers loans up to ₹ 50000 with a repayment period of up to 3 Years. The primary purpose of this loan is to provide initial assistance to the entrepreneur for the purchase of kitchen essentials, gas connections, raw material, etc.

Stree Shakti Package for Women Entrepreneurs

The Stree Shakti Package is a unique scheme run by the SBI, aimed at supporting entrepreneurship among women by providing certain concessions. An enterprise should have more than 50% of its share capital owned by women to qualify for the scheme. The concessions offered under the Stree Shakti Package includes lowered interest rates ( by 0.5%) in case the loan exceeds Rs 2 lakh, no security for loans up to 5 lakhs under tiny sector units, and also 5% lower margin applicable to separate categories.

Bharatiya Mahila Bank Business Loan

This loan is a support system for budding women entrepreneurs looking to start new ventures in the fields of the retail sector, loan against property, MICRO loans, and SME loans.

The maximum loan amount under this loan goes up to INR 20 crores in case of manufacturing industries and also a concession is available to the extent of 0.25% on the interest rate and interest rates usually range from 10.15% and higher.

Dena Shakti Scheme

Female Entrepreneurs in the fields of agriculture, manufacturing, micro-credit, retail stores, or small enterprises who are in need of financial assistance can avail benefits of this scheme. The interest rate is decreased by 0.25% along with the maximum loan amount being INR 20 lakhs for retail trade; education and housing whereas ₹50,000 under the microcredit.

Orient Mahila Vikas Yojana Scheme

Women Entrepreneurs enterprise consisting of all units managed by one or more in proprietary concerns or in which she/they individually or jointly have a share capital of not less than 51% as partners/ shareholders/ directors of a private ltd. company/members of a co-operative society are eligible for this scheme. No collateral security is required for loans of ₹10 lakhs up to ₹25 lakhs in case of small-scale industries and the period of repayment is 7 years. A concession on the interest rate of up to 2% is given.

MUDRA Yojna Scheme for Women

Women wanting to start small new enterprises and businesses like beauty parlors, tailoring units, tuition centers, etc. as well as a group of women wanting to start a venture together can reap the benefits of this scheme.

The loan doesn’t require any collateral security and can be availed as per 3 schemes –

1.     Shishu – Initial Stage business can avail a loan up to INR 50000
2.     Kishor – Loan amount between INR 50000 – INR 5 Lakhs for a well-established business
3.     Tarun – Loan amount up to INR 10 Lakhs for an established business looking for expansion.

Udyogini Scheme

This scheme is offered by Punjab and Sind Bank so as to provide women entrepreneurs involved in Agriculture, retail and small business enterprises to get loans for business at flexible terms and concessional interest rates. The maximum amount of loan under this scheme for women between the age brackets of 18-45 years is ₹1 lakhs but your family income is also taken into consideration and is set at ₹45,000 per annum for SC/ST women.

Cent Kalyani Scheme

Cent Kalyani Scheme is launched with the aim of supporting women in starting a new venture or expanding or modifying an existing enterprise this loan can be availed by women who are involved in village and cottage industries, micro, small and medium enterprises, self-employed women, agriculture and allied activities, retail trade, and government-sponsored programs.

This scheme requires no collateral security or guarantor and charges no processing fees. And the maximum amount that can be granted under the scheme is Rs. 100 lakhs.

Mahila Udyam Nidhi Scheme

Launched and offered by Punjab National Bank, this loan aims to help women set-up new projects. It mainly targets the small-scale sector and promotes upgrading and modernization of existing projects. It offers loans up to Rs. 10 Lakhs with a repayment period of 10 years, and moratorium period of maximum 5 years. Interest rates vary according to market rates

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