Schemes for women entrepreneurs
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8 Government Funding Schemes For Women Entrepreneurs In India

May 13, 2022

“We cannot change what we are not aware of, and once we are aware, we cannot help but change.” – Sheryl Sandberg (COO of Facebook)

In India, women entrepreneurs are breaking new ground and coming up with great business ideas.

To encourage women to build up small business setups and use their skills, the Indian government and banks keep on bringing out schemes from time to time.

Let’s look at the top 8 government funding schemes for women entrepreneurs in India.

BHARATIYA 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 businesses. For business ideas in the manufacturing sector, the bank was allowed to grant as high as Rs 20 crores to these business minds.

If the business plan is falling under the category of Credit Guarantee Fund Trust for Micro and Small-scale enterprises, the Bharatiya Mahila Bank was authorised to issue a loan of Rs 1 crore with no collateral.

ANNAPURNA SCHEME

This scheme applies to women entrepreneurs who have started a food catering unit. They can avail of a loan of up to Rs 50,000 to purchase kitchen equipment such as utensils and water filters. A guarantor is required to secure the loan. After securing the loan, it can be repaid in 36 instalments. Further, interest rates under this scheme as per prevailing rates and assets will be taken as collateral by the concerned bank.

CENT-KALYANI SCHEME

This scheme under the Central Bank of India can be availed by both existing and new entrepreneurs and self-employed women for micro/small enterprises like farming, handicrafts, food-processing, garment making, beauty, canteen, mobile restaurants, circulating libraries, day creches, STD/Xerox booths, tailoring etc. (in other words, agriculture, cottage industries, small and medium enterprises, government-sponsored programs and retail trade.)

Under this scheme, loans up to Rs 1 crore are sanctioned with a margin rate of 20 per cent. You do not require any collateral security or guarantors for this loan. Interest in loans depends on market rates. The loan tenure will be a maximum of seven years including a moratorium period of 6 months to 1 year.

DENA SHAKTI SCHEME

It provides loans up to Rs 20 lakh for women entrepreneurs in agriculture, manufacturing, micro-credit, retail stores, or small enterprises. It also provides a concession of 0.25 per cent on the rate of interest. Loans up to Rs 50,000 are offered under the microcredit category.

MUDRA YOJANA SCHEME FOR WOMEN

This scheme was launched by the Centre for individual women wanting to start small new enterprises and businesses like beauty parlours, tailoring units, tuition centres, etc. as well as a group of women wanting to start a venture together. The loan doesn’t require any collateral security and can be availed as per 3 schemes –

  1. Shishu – loan amount is limited to Rs 50,000 and can be availed by those businesses that are in their initial stages
  2. Kishor – loan amount ranges between Rs 50,000 and Rs 5 lakhs and can be availed by those who have a well-established enterprise
  3. Tarun – loan amount is Rs 10 lakhs and can be availed by those businesses that are well established but require further funds for expansion

ORIENT MAHILA VIKAS YOJANA SCHEME

This scheme is provided by the Oriental Bank of Commerce to those women who hold a 51% share capital individually or jointly in a proprietary concern. No collateral security is required for loans of Rs 10 lakhs up to Rs 25 lakhs in the case of small-scale industries and the period of repayment is 7 years. A concession on the interest rate of up to 2% is given.

STREE SHAKTI PACKAGE FOR WOMEN ENTREPRENEURS

This scheme is offered by most SBI branches to women who have a 50% share in the ownership of a firm or business and have taken part in the state agencies that run the Entrepreneurship Development Programmes (EDP).

The scheme also offers a discounted rate of interest of 0.50% in case the amount of the loan is more than Rs 2 lakhs.

MAHILA UDYAM NIDHI SCHEME

This scheme was launched by Punjab National Bank and it aims to support those women entrepreneurs who are involved in the small-scale industries by granting them soft loans. These loans can be repaid over 10 years.

Under this scheme, there are different plans for beauty parlours, daycare centres, the purchase of auto-rickshaws, two-wheelers, cars, etc. The maximum amount granted under this scheme is Rs 10 lakhs and the interest depends upon the market rates.

The increasing presence of women in the business sector as entrepreneurs has changed the demographic characteristics of the country’s business and economic development.

Women-owned business enterprises are playing a more active role in society.

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