Top 5 Government Schemes That Have Helped Budding Women Entrepreneurs In India

Gone are the times when women in India were confined inside the homes or were stuck with a 9 to 5 job. Now the times have changed in the favor of women to help them emerge as the leading entrepreneurs. Though the world is familiar with women in business like Chanda Kochar, Indra Nooyi, Ekta Kapoor to name a few but they have inspired many to carve a mark of their own.

For all the women who are filled with enthusiasm and ideas to generate revenue, the government of India has stepped up. It has brought together numerous schemes and plans to make sure these women entrepreneurs don’t have to face the hassle of a capital. 

Out of the many schemes out there, we have narrowed the list to the top 5 government schemes to help budding women entrepreneurs. So, in case you are wondering what are these schemes and how can you or anyone around you make the best of it, then continue to read and achieve the eventual goals with Indifi.

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Annapurna Scheme

A woman in the house is known for the delicacy she serves every day to her loved ones. But wouldn’t it be great if this amazing taste and food served to the ones away from home and moreover, she earns from it. 

For an idea like that and the willingness to achieve the aim, the Annapurna scheme is launched by the State Bank of Mysore. This scheme primarily aims at providing funding for female entrepreneurs in India who are stepping into the food catering business and need an upgrade for their kitchen. Expenses like buying new utensils and required kitchen accessories are covered up under this scheme.

To avail this loan, a guarantor, as well as collateral, is required by the bank. In majority cases, the assets of the upcoming business are offered to serve the collateral requirement. Look after collateral free business loan.

The maximum loan that a lady can get for her business under Annapurna scheme is INR 50,000. After the loan gets sanctioned, it is to be paid in 3 years, however, the EMI for the first month is waived off.  

The interest rate levied on this loan is decided by the prevailing market rate. All in all, it is one of the top 5 government schemes to help women entrepreneurs in the country.

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Bhartiya Mahila Bank Business Loan

As the name suggests the bank was founded with the sole purpose of enabling underprivileged women who wanted to start their own business. For business ideas in the manufacturing sector, the bank was authorised to grant as high as INR 20 crores for these women minds. Here are few top Profitable Manufacturing Business Ideas In India

If the business plan is falling under the category, Credit Guarantee Fund Trust for Micro and Small scale enterprises, the Bhartiya Mahila Bank was authorized to issue a loan of INR 1 crore without any collateral. 

The return period for the issued loan was set to 7 years with a base interest rate of 10.25 %. However, there is an additional interest rate of 2 % which makes the total rate on the issued loan 12.5% for the women who are in need of the capital. Later the bank was merged with State Bank of India on 31st March 2017.

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Apart from the manufacturing sector, this bank under the government scheme to help women entrepreneurs, also provides loans for business set up in the retail sector, SME loans and property loans as well.

Mudra Yojana Scheme for Women

This prime minister loan scheme for ladies was launched by the government of India to support enthusiastic women entrepreneurs who are seeking a business plan like starting a beauty parlour, tuition centre, a stitching shop or any other that makes them financially stronger with minimum efforts. Online business is also trending nowdays hence get through a successful business plan for E-Store

Another feature of this scheme is that it aims at funding a business, now whether it will be run by a single woman or a team of women, it is totally up to the ladies coming together for a business.

This scheme under the government of India does not require any collateral to grant the loan. However, there are categories under which a loan application can be filed. They are:

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Women Loan Scheme Under The Government Of India

Shishu loan

This loan scheme for women is sanctioned when the business is in its initial stage and the maximum loan granted is INR 50,000.

Features of Shishu Loan

1. User-friendly experience with onboarding available via the Bank’s website, Net Banking, and Mobile App.
2. No need for physical document submission.
3. Branch visit is optional, not compulsory.
4. Quick turnaround time, with loan approval within 5-7 minutes.
5. Utilization of geotagging tools for business unit verification.
6. Complete automation and digitization of the loan approval process, documentation, and disbursement, ensuring swift access to loans for micro-entrepreneurs within minutes.

Kishor loan

For the ones who already have established business but seek to imp

rove their services, this loan is sanctioned. The amount of loan granted under this category varies from INR 50,000 to INR 5 lacs.

Eligibility Criteria for women loan scheme

All Micro Business Enterprises currently associated with the bank (ETB – Existing to Bank) and those newly approaching the bank (NTB – New to Bank) and involved in Manufacturing, Service, Trading Activities, or Allied Agriculture Activities are eligible under the following criteria:

i. The age of the promoter should be between 21 and 65 years.

ii. The entity must possess a valid Udyam Registration Number (URN).

iii. Business entities falling under the categories of Individuals, Proprietorship, and Partnership concerns (including LLPs), classified as Micro enterprises according to the MSMED Act 2006, are eligible.

iv. The Borrower/Proprietor/Partner should have a valid Aadhar and PAN. In the case of an Existing to Bank customer, the PAN of the Business and PAN & Aadhar of all promoters must be provided in the CBS.

v. The business entity should maintain a bank account with any Schedule Commercial Bank, and it should be at least 6 months old.

vi. The Borrower/Promoter and the name of any Sister concern should not appear in any defaulter lists/CFR.

Tarun loan

For the well-established businesses which are planning to expand their reach and are short on capital, they can avail as much as INR 10 lacs for the purpose.

Another feature of this government scheme for helping women entrepreneurs is that there is a Mudra card which is also issued to the applicant of the loan. This card functions similarly to a credit card and has a limit of 10% of the total loan amount sanctioned.

Orient Mahila Vikas Yojana Scheme

Out of the many schemes made available by the government, this has been designed to strengthen the woman in-charge and meet her initial fund requirements to start her business.

This means that for a woman entrepreneur to avail loan under this scheme it is mandatory for her to have a minimum of 51% shared in the business. For the loan sanctioned, a 2% relaxation in the rate of interest is provided under this scheme. 

Furthermore, if the loan amount granted is less than 10 lacs then this scheme does not demand any collateral to be submitted. But there is more with this scheme. If the business loan applied for falls under the category of Small Scale industries then a loan as high as INR 25 lacs is sanctioned without any collateral towards the scheme.

The loan issues are to be repaid within 7 years and this initiative was taken by the Oriental Bank of Commerce to help women entrepreneurs in India.

Udyogini Scheme

This is one of the top 5 schemes launched by the government of India to help bud the women entrepreneurs by asking for the least possible interest rates for the loan provided. For the women who fall in the age group of 18 years to 45 years, loans of up to INR 1 lac gets sanctioned easily for starting their business.

The main condition is that her family’s yearly income should be less than INR 45,000. However, this income limit is waived off in the case of a widow, disabled or destitute woman. 

For women who are falling under the income limit waiver category or are under SC/ST category, they further get a subsidy of INR 10,000 or 30% of the sanctioned loan, whichever is less. For women under the general category, a subsidy of INR 7,500 or 20% of the sanctioned loan amount is provided, whichever is less. 

This scheme was initially promoted by Punjab and Sind bank but later other banks like Karnataka Woman’s State Development Corporation have joined hands and provide this loan to the future woman entrepreneur of the country.

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All these different schemes and plans have one thing in common that each of them is aimed at strengthening the women of the country. They have been designed and constructed keeping in mind the condition of the women who want to start their own business and rise high. Several precautions have also been taken to make sure that the money is issued to the right person for the right purpose. Given all these efforts by the government of India to help to bud the women entrepreneurs has already helped a lot of them to live a life of pride and Indifi supports each of them for the skill they have excelled in.