Empowering Women Entrepreneurs With Government Loan Schemes In India

Women have made significant strides in entrepreneurship and business development over time. They have continuously broken barriers and demonstrated their ability to drive change. Today, women entrepreneurs are strongly supported due to their remarkable achievements in various industries.

If you are a woman looking to showcase your intelligence and skills in the workforce, breaking societal barriers can help you establish yourself as a successful entrepreneur. Women-owned micro, small, and medium enterprises (MSMEs) now have access to various government loan schemes for women entrepreneurs and public institutions. These loan programs provide attractive financial support to help women secure funding for their businesses.

However, these loan schemes may have specific eligibility criteria, age limitations, loan limits, and conditions that must be thoroughly reviewed before applying. Below, we discuss some of the key government loan schemes available for women entrepreneurs in India.

Top Government Loan Schemes for Women Entrepreneurs in India

1. Annapurna Scheme

This scheme supports women entrepreneurs in the food catering industry by providing capital for purchasing essential equipment such as utensils, trucks, and kitchen appliances.

• Loan amount: Up to ₹50,000
• Suitable for: Women starting a small-scale food business

2. Bharatiya Mahila Bank Business Loan

This initiative was launched to provide financial assistance to women entrepreneurs across various industries.

• Loan amount: Up to ₹20 Crores
• Suitable for: Large-scale businesses and expansion plans

3. Mudra Yojana Scheme

This scheme aims to enhance women’s financial independence by providing business loans for women under the Pradhan Mantri Mudra Yojana (PMMY). Approved applicants receive Mudra Cards, which function like credit cards with a withdrawal limit equal to 10% of the loan amount.

Mudra Yojana is divided into three categories based on loan amount:

• Shishu Loan: Up to ₹50,000 for startups and new businesses
• Kishor Loan: ₹50,001 to ₹5,00,000 for purchasing raw materials and equipment
• Tarun Loan: ₹5,00,001 to ₹10,00,000 for expanding existing businesses

4. Dena Shakti Scheme

This scheme provides business loans for women in the agriculture, retail, manufacturing, and microcredit sectors.

• Loan amount: Up to ₹20 Lakhs
• Suitable for: Women in agriculture, manufacturing, and retail businesses

5. Pradhan Mantri Rozgar Yojana (PMRY)

PMRY aims to promote self-employment and entrepreneurship among women by offering financial assistance and skill-based training.

• Loan subsidies: Up to 15% of the project cost (maximum ₹12,500 per borrower)
• Suitable for: Women in both urban and rural areas

6. Udyogini Scheme

This scheme supports women entrepreneurs in various industries by offering business loans for women at lower interest rates.

• Loan amount: ₹2 Lakh to ₹5 Lakh
• Age limit: 18 to 55 years
• Suitable for: Women from economically weaker sections with an annual family income below ₹40,000

7. Cent Kalyani Scheme

This initiative provides collateral-free business loans for women looking to start or expand their businesses.

• Loan amount: Up to ₹100 Lakhs
• Suitable for: Women in manufacturing, trade, and service sectors

8. Mahila Udyam Nidhi Scheme

This scheme encourages investment in MSMEs by providing financial assistance for small-scale enterprises.

• Loan amount: Up to ₹10 Lakhs
• Repayment period: 10 years
• Suitable for: Women in small-scale businesses and startups

9. Stree Shakti Yojana

Women entrepreneurs who have participated in an Entrepreneurship Development Program (EDP) qualify for loan concessions under this scheme.

• Special benefits for loans exceeding ₹2 Lakhs
• Suitable for: Women looking to establish or expand their businesses

10. Synd Mahila Shakti Scheme

This initiative by Syndicate Bank provides financial assistance to women-owned small businesses and self-employed women.

• Loan amount: Up to ₹5 Lakhs
• Suitable for: Women entrepreneurs in small businesses and self-employment

11. Mahila Coir Yojana

This scheme empowers women by providing subsidized coir processing equipment after training.

• Subsidy: Up to 75% of the equipment cost
• Suitable for: Women involved in coir product manufacturing

Conclusion

The Indian government has introduced various business loans for women to support and encourage women entrepreneurs. These initiatives provide financial assistance, training, and resources to help women establish and grow their businesses.

Women who wish to start their ventures should explore these schemes and choose the one that best suits their business needs. By taking advantage of this financial aid, women entrepreneurs can achieve self-reliance and contribute to the country’s economic growth.

Neeraj Gupta

Neeraj is a Content Strategist at The Next Tech. He writes to help social professionals learn and be aware of the latest in the social sphere. He received a Bachelor’s Degree in Technology and is currently helping his brother in the family business. When he is not working, he’s travelling and exploring new cult.

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