Currently, there are numerous financial products available in India for women entrepreneurs, such as a business loan for women that aims to encourage women entrepreneurship. Below is listed some of the best start-up loans for women in India.
Bhartiya Mahila Bank offers Annapurna loan for women who want to start a food catering business. Under the scheme, women can avail Rs. 50000 and get a repayment tenor of 36 months with a one-month moratorium period.
Cent Kalyani scheme
Cent Kalyani scheme is launched by the Central Bank of India. This scheme offers loans which target both new and existing business. The eligible applicant list also includes self-employed and professionals.
With a loan from the Cent Kalyani Scheme, women can start a business in sectors like farming, handicrafts, garment making, food processing, tailoring, i.e. agriculture, cottage industries, government-sponsored programs, small and medium enterprises, and retail trade. The maximum amount offered under the scheme is Rs.1 crore.
Dena Shakti scheme
Designed to promote women entrepreneurship, Dena Bank offers business loans for women who are looking for funds to initiate business in sectors such as agriculture, retail, manufacturing and micro-credit. Under the scheme, women can avail a maximum amount of up to Rs.20 lakh.
Mahila Udyam Nidhi scheme
Under the Small Industries Development Bank of India (SIDBI), women can get financial support up to Rs.10 lakh to help establish a new business in the small-scale sector. The loans under this scheme come with a repayment tenor of 10 years.
Mudra Yojana Scheme for women is one of the great sources of financing for women business persons. The scheme aims to provide start-up business loan for women in micro-business units and a group of women willing to start a venture together. Mudra loan scheme offers loans in three categories, of which the Shishu loan option offers women entrepreneurs with credit of up to Rs.50000 to start a small-scale business.
Punjab and Sind Bank took the initiative to promote women entrepreneurship and women empowerment. Under the scheme, women of 18-55 years can avail of a loan up to Rs.3 lakh. Apart from providing financial support, the scheme emphasizes skill development training programs.
However, issues like rigid eligibility criteria, lack of document maintenance and even time-consuming loan processing have clouded the easy availability of these financial products. In this regard, renowned financial institutes like Bajaj Finserv have come up with financial products like an unsecured business loan for women entrepreneurs that offer loans up to Rs.45 lakh to help women start a new business.
The NBFC extends pre-approved offers to make the loan-available process quick and easy. These offers are available for other financial products like business loan, personal loan, etc. Individuals can check their pre-approved offers by entering name and contact details.
According to a study, women-led businesses contribute 3.09% of the industrial output and employ 8 million people in India. The study also adds that there are around 3 million micro, small and medium enterprises that are partially or fully owned by women.
While there are numerous businesses financing options available in the market, choosing the right one can thrust aspiring women entrepreneurs into a dilemma. However, equipped with knowledge about the features of various business loan for women, one can definitely make an informed decision.