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Business Loans For Women Entrepreneurs

IndianMoney.com Research Team | Posted On Wednesday, January 01,2020, 03:26 PM

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Business Loans For Women Entrepreneurs

 

 

Women entrepreneurs are sprouting in different parts of the country with increasing women empowerment programs. Women are encouraged to be financially independent. However, starting a business or expanding an existing one is not a cakewalk. The first thing is, it requires capital investment. Capital investment is the sum of money a person requires to start a business such as renting a building, acquiring raw materials and so on.

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Business Loans For Women Entrepreneurs

To make this easy, financial institutions all over the country have come up with business loans exclusively for women. These loans are available at a lower interest rate making them affordable.

Let's take a look at some of them:

  • Cent Kalyani from Central Bank of India (CBI)- This loan scheme is for women working in sectors like farming, retail, government firms or independent professionals such as doctors, chartered accountants etc. This loan can be availed for the purpose of meeting day to day operations, acquiring working capital, fixed capital and procurement of plant and machinery. A maximum of 7 years loan tenure is possible. Advantages of this loan scheme are:

- Interest rates are very low (starting from 8.75% onwards)

- No collateral required

- Maximum amount that can be availed is Rs 1 Crore.

How to Apply for This Loan?

The application form for the loan can be downloaded online and must be submitted along with the required documents at the nearest Central Bank of India branch.

  • Shakthi Scheme from Dena Bank- This scheme covers a wide range of sectors like agriculture, small enterprises, manufacturing enterprises, service enterprises, retail trade, education, housing and more. The eligibility criteria for this loan are, the woman should have 50% of the company's ownership. The loan tenure can be extended to a maximum of 10 years. Interest rates are as low as 0.25%. Amount availed depends on the sector you are working for. It can reach up to a maximum of 20 Lakhs for education, retail and housing.
  •  How to Apply for This Loan?

The nearest Dena Bank must be approached for the same along with the required documents. Documents for identity proof (aadhaar card, pan card, driving license, voter id etc), address proof (aadhar card, passport, utility bills, property tax bill), bank details and passport size photo are required.

  • Loans from Bhartiya Mahila Bank- this is a bank exclusively for meeting the financing and banking needs of women in India. They have a variety of loan options depending on the applicant's need. Interest rates, age criteria and amount availed differs across schemes. The interest rate on all these loans will be decided by the Reserve Bank of India (RBI).

To Mention a Few:

BMB Shringaar: Loans for beauty parlor, salon or spa. No collateral required. It has a tenure of 7 years.

BMB Annapurna: Loans for food catering. The purpose of the loan could be to set up a shop or purchase the required items. The loan tenure is 3 years.

BMB Parvarish:  Loan for day care centre. The loan tenure is 3 years.

BMB SME Easy: Loans for small and medium enterprises. The loan tenure is up to 7 years. No collateral required up to Rs 1 Crore.

See Also: Business Loan - Features, Interest Rate and Eligibility

How to Apply for These Loans?

Visit the nearest branch and fill out the application form along with the required documents. Required documents for salaried employees and self employed applicants differ. In case of salaried employees, other than the basic identity documents and address proof, payslip for the previous 3 months and salary account bank statement for 6 months is required. On the other hand, self-employed individual's financial documents and current obligations will be examined.

  • Stree Shakthi Package from State Bank of India- It is a loan scheme by the State Bank of India. It is for women entrepreneurs who own a stake of more than 51% in the company. The interest rates will be lower than the bank's base rate. It requires no collateral up to Rs 5 Lakh. The maximum amount you can avail is Rs 50 Lakhs.

How to Apply for This Loan?

Visiting the nearest SBI branch helps apply for this loan.

  • Synd Mahila Shakthi from Syndicate Bank- This is a loan program for new and existing women entrepreneurs. It requires one or more women who own 50% in the Company. The loan can be either in the form of cash credit or term loan. A sum of Rs 5 Crore is the maximum amount that can be availed under this scheme. It has loan tenure of 10 years including the moratorium period (period during which the borrower need not make the repayment).

How to Apply for this Loan?

Visiting the nearest Syndicate Bank branch will helps apply for this loan.

  • Mudra Yojana Scheme- This is a scheme for small scale business owners. Businesswomen in India often face financial problems as they find it difficult to take loans that have high interest rate. Under this scheme, loans for car, vehicles, procurement of plant/machinery, working capital and so on are available. The loan limits and interest rates for different options are:

Scheme name

Loan limit (in rupees)

Interest %

Loan tenure

Shishu

50,000

1%/month or 12%/annum

5 years

Kishore

50,000-5,00,000

Depends on the bank

Depends on the bank

Tarun

5,00,000-10,00,000

Depends on the bank

Depends on the bank

These are just a few loan schemes offered by reputed banks in the country. There are many more available. According to latest studies, there are only 8 million women entrepreneurs in the entrepreneurial society. Whereas, the number of male entrepreneurs are more than 50 million. These loan schemes are especially aimed at women empowerment, which will improve the quality of living as well as generate job opportunities.

See Also: Taking Business Loan from Private Banks

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