The demand for female businesspersons is very high at the moment. Therefore, this has led the Government to initiate numerous schemes and programs that mainly focus on offering business loan for women entrepreneurs.
Females constitute nearly 14 percent of the overall entrepreneurs, as per the 6th economic census 2018.
Let us now talk about some of the best business loans for women entrepreneurs that you want to know.
Under this program, a loan of up to 50000 INR is offered to women entrepreneurs by the government. While searching for a business loan scheme for the female entrepreneur, the Annapurna is among the top programs for women involved in agriculture. Currently, the Annapurna scheme is provided by Bharatiya Mahila Bank and The State Bank of Mysore.
The key benefit of the Annapurna scheme is that the women do not need to pay any EMI for the initial month after the approval of the loan. The disadvantage of this loan is that the maximum amount the female entrepreneur can avail is 50000 INR.
The debtor should return the money in EMIs for 3 years with the interest rate based on the market rate. Also, they need a sponsor with the possessions of the enterprise being pledged as surety.
Orient Mahila Vikas Yojana
Orient Mahila Vikas Yojana was initiated by Oriental Bank of Commerce. This scheme aimed to support the women with 51 percent share investment separately or mutually in any business.
The female entrepreneur in small-sized enterprises can avail a loan amount of 10 lakh INR to 25 lakh INR under this scheme.
The best thing about the Orient Mahila Vikas Yojana scheme is that no surety is needed, and the reimbursement tenure is 84 months. In addition, this scheme offers a concession on the interest rate of 2%.
Bharatiya Mahila Bank Business Loan
Since Bharatiya Mahila Bank got merged with the State Bank of India, their vision of endorsing financial openings for women still remains. The business loan provided by them is to help potential female entrepreneurs who are planning to start a new business in the sectors of MICRO, SMEs, and trade.
BMB grants business loans for women entrepreneurs involved in the trade and manufacturing industry under this scheme. They can avail a loan amount of up to 1 crore in case of manufacturing sector and 5 Crore in case of retail and service business.
Under this scheme, the maximum loan goes up to 20 Crores with a margin rate of 10.15 percent or more. The best thing about this scheme is that it offers a collateral security-free loan of up to 1 Crore INR. The loan is not just for women involved in small and medium-sized enterprises.
The drawback of this scheme is that you need to have at least two years of work experience if you are self-employed to get this loan.
Shree Shakti Package
This scheme is provided by most SBI branches in the country. It mainly focuses on offering a startup loan for female entrepreneurs. The key benefit of this business loan is that it is collateral-free, which means it does not require any surety for loans up to 5 lakh INR.
Moreover, the bank offers concessions like a reduced interest rate if the loan goes over 2 lakh. The loan is only accessible to women with a share of 51 percent or more in a business.
Mudra Yojana Scheme
Mudra loan for womenhas received great recognition after the introduction of the “Make in India” campaign by the Government. Under the Mudra Yojana program, female entrepreneurs can get a loan of at least 50000 INR and up to 10 lakh INR.
Mudra Yojana scheme primarily focuses on granting a business loan for women engaged in micro-enterprises and female groups planning to start a business together. The loan is collateral-free.
The Cent-Kalyani Scheme is provided by the Central Bank of India, which is meant for the new and current female entrepreneurs.
A female entrepreneur can attain this loan for micro or small-sized businesses like home-food delivery or opening a salon. The main objective of the Cent-Kalyani Scheme is to offer business loans for women and aid them to meet their daily expenses.
Moreover, loans of up to 1 Crore INR are allowed under the Cent-Kalyani Scheme with an interest rate of 20 percent.
This loan does not require any surety or guarantors, and the interest rate depends on current market rates. It is only available to women in small and medium-sized businesses.