funding options for women entrepreneurs

Funding Schemes For Women Entrepreneurs In India

With increasing business opportunities, the number of Women Entrepreneurs has also increased.

And to nurture this growth, many schemes are available for Women Entrepreneurs in India. Under these schemes, Women entrepreneurs can get loans as per their requirements, at low-interest rates, and in some, no collateral is required.

Funding Schemes For Women Entrepreneurs In India

Following is the list of various funding schemes for Women Entrepreneurs in India.

1. Annapurna Scheme

This scheme is for women entrepreneurs in the food catering business. Under this scheme, the Government of India offers

  • Loan up to ₹50,000 
  • State Bank of Mysore and Bharatiya Mahila Bank currently offers this scheme
  • To avail of this scheme, a guarantor is required and business assets are needed as security (collateral)
  • Loaned Money must be repaid in 36 monthly installments (3 years)

2. Cent Kalyani Scheme

This scheme is by the Central Bank of India and is formed to encourage Women Entrepreneurs.

  • Maximum Rs. 100 Lacs is sanctioned with a margin rate of 20 percent
  • No third-party guarantee required as advance is covered by Guarantee Cover of CGTMSE

3. Mudra Yojana Scheme

This is a general scheme and women entrepreneurs can avail benefits of this too. This scheme is offered by nationalized banks under the Pradhan Mantri Mudra Yojana.

  • Loans between ₹50,000 to ₹10 lakh are sanctioned
  • Can be used to set up a beauty parlour, tuition center, tailoring unit, etc.

The scheme has three plans:

  1. Shishu
  2. Kishore
  3. Tarun

Shishu

A maximum limit of ₹50,000 is granted for a new business. The rate of interest is 1 percent per month or 12 per annum. The repayment period up to 5 years.

Kishore

The minimum loan amount is ₹50,000 and the maximum loan amount is Rs 5 lakh for well-established businesses.

The rate of interest varies with banks as it depends on the scheme guidelines and credit history of the applicant. The repayment period also depends on the discretion of the bank.

Tarun

The minimum loan amount is ₹5 lakh and the maximum loan amount is ₹10 lakh.

4. Dena Shakti Scheme

Under this scheme, women entrepreneurs get

  •  Up to Rs 20.00 lakhs under retail trade, Rs 20 lakhs under education and housing and Rs 50,000 under micro-credit
  • A concession of 0.25 percent on the rate of interest

5. Orient Mahila Vikas Yojana Scheme

  • Only the Women who hold a 51 percent share capital individually or jointly in a proprietary concern can avail this loan
  • No collateral is required for loans between ₹10 lakhs to ₹25 lakhs for small-scale industries
  • The repayment period is 7 years
  • Concession on the interest rate of up to 2 percent

6. Bhartiya Mahila Bank Business Loan

The scheme was started by Bhartiya Mahila Bank (BMB) which later merged with the State Bank of India (2017). Under this scheme, women entrepreneurs get

  • Loan up to Rs. 5 Crores for the retail trader and service enterprises
  • Loan up to Rs. 20 Crores for manufacturing enterprises
  • Collateral free loan: Up to Rs. 1 Crore
  • Special business loans and collateral-free loans up to ₹1 crore under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) cover
  • A 0.25 percent concession in interest rate
  • The repayment tenure is seven years

Some of the different plans under the scheme include:

  1. Shringaar
  2. Parvarish
  3. Annapurna

Shringaar- As the name suggests, this loan is available to self-employed women or homemakers who want to set up a parlour, purchase equipment, or meet daily business expenses. No collateral is required for this loan.

Parvarish- this loan is for self-employed women or homemakers to set up day-care creches.

The maximum amount that can be loaned is ₹1 Crore without any collateral under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGSTSM) scheme.

Annapurna- This scheme is for Food entrepreneurs, between 18 to 60 years. Its features are similar to that of State Bank of Mysore’s Annapurna scheme, minus the fact that it does not require collateral security.

7. Mahila Udyam Nidhi Scheme

This scheme is offered by Punjab National Bank and the Small Industries Development Bank of India (SIDBI). The benefits women get from this scheme are

  • Loans up to ₹10 lakh and that to be repaid in 10 years. 
  •  A five year moratorium period.

There are various plans under this scheme. SIDBI offers different plans for the purchase of auto-rickshaws beauty parlours, daycare centers, cars, etc. Support regarding upgrading and modernization of existing projects is also available

8. Udyogini Scheme

The main benefit of this scheme is that it offers low-interest rates. Other benefits include

  • Loan/limit would be granted on a case to case basis and depending upon the purpose of loan
  • No collateral up to Rs.25, 000
  • Above Rs. 25,000, a guarantee of spouse or third party is required
  • Collateral in the form of land/building property (double the value of the loan)

(Note: Benefits of schemes change from time to time. So, you check the updated benefits by going to the links provided with the schemes.)

Top Accelerators And Incubators Supporting Women Entrepreneurs In India

To increase the growth of Women Entrepreneurs, many incubators and accelerators are present in India.

Below written incubators and accelerators are exclusively designed for women and offer Funding Assistance, Mentorship, Industry Connect, and other services that are required for their business growth.

List of Incubators and Accelerators for Women Entrepreneurs

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