Various Types of Loans Available for Women to Start A Business in India
In today’s time, women’s entrepreneurship is rising, and more and more women are running their own businesses. However, they need to have the required capital to run any business successfully. There are several types of loans for women available in the market to help you manage your business expenses, and depending on your needs; you can opt for the one that suits your requirement.
There are many loan schemes that provide low-interest loans to encourage more women to start their own businesses. The qualifying requirements for these kinds of loans are simple, and they need just a few documents.
Here is the list of business loans for women that are available to help women entrepreneurs with their funding requirements:
The Annapurna scheme is a loan for women who have launched or want to start a food service business. With this scheme, they may get a loan of up to Rs 50,000 to buy kitchen basics like utensils, gas connections, raw materials, and water filters. A guarantor is needed to obtain the loan.
- Stree Shakti Yojana
The Stree Shakti Yojana encourages women’s entrepreneurship through concessions. This plan is for women with majority ownership in their company. In addition, these female entrepreneurs must be registered in their respective state agency’s Entrepreneurship Development Program (EDP). You can get a 0.05% interest discount on business loans for women over 2 lakh under the Stree Shakti scheme.
- Udyogini Scheme
The Udyogini scheme is a program that offers subsidised loans for women residing in rural and underdeveloped areas to encourage and inspire them to start their own businesses. A maximum of Rs 3 lakh is made available to women entrepreneurs who are running or starting small businesses, with subsidised rates or, in some cases, no interest charged. Loans under this scheme will be eligible for up to a 30% government subsidy. Women between 25 and 65 with a household income of under Rs 1.5 lakh may apply.
- Mudra Loan for Women
The government established the Mudra Loan for Women to provide financial assistance to women interested in starting their own businesses. For example, they might want to open a beauty parlour, a tutoring centre, a sewing shop, etc. The loan might be granted without the need for any collateral. There are categories for Mudra loan applications:
- Shishu Loan: Startups may borrow up to Rs. 50,000.
- Kishor Loan: For established firms looking to enhance services. Loans range from 50,000 to 5 lakh.
- Tarun Loan: Well-established enterprises short on funds may borrow up to Rs. 10 lakh for this loan.
- Women Entrepreneurship Platform (WEP)
NITI Aayog is responsible for initiating the Women Entrepreneurship Platform (WEP), which is a unified access portal that is the first of its kind. It brings together women from different parts of India who want to start their own businesses. It offers services such as free credit ratings, coaching, financial assistance to women entrepreneurs, apprenticeships, and corporate alliances. NITI Aayog and SIDBI have joined forces so that SIDBI can help with this project.
- Unsecured loans for women entrepreneurs from leading lenders
Suppose you do not meet the required eligibility criteria to get any of the loans mentioned above. In that case, you can get small business loans from leading lenders and fintech companies. With these unsecured business loans, you can get up to Rs. 45 lakh with minimal paperwork and in a hassle-free process.
One of the reputed NBFCs, Bajaj Finserv, offers a high-value business loan for women without any collateral, and you can get funds with minimal paperwork.