Considering
that women form half of the population, it becomes evident that their
economic empowerment is going to have a strong cascading effect on
the overall economic growth of Indians, especially those in the
lower-income strata. Women generate wealth, which plays a key role in
the overall financial improvement of the family. The government of
India is extremely focused on increasing the economic prosperity of
women in India. This is the reason we have come across a number of
women-oriented business promotion schemes in the last few years. Let
us look at some of the government schemes for women entrepreneurs.
These schemes are offered directly by the government and by
government-owned banks.
StreeShakti Package for Women Entrepreneurs
The
State Bank of India has the largest banking reach in India. It is,
therefore, understandable that they are running one of the best
schemes for women entrepreneurs. This scheme is available for any
business in which the ownership of a woman is more than 50%. As long
as the unit is enrolled in the Entrepreneurship Development
Programmes (EDP) run by the concerned state government, they can have
loans of as much as INR 5 lakhs without any security or collateral.
SBI also allows interest discounts of 0.05% on loans, which are above
INR 2lakhs.
Annapurna Scheme
One
of the most common types of businesses started by women are related
to food & confectionary. The biggest reason being that food will
almost always be in heavy demand in a country with as large a
population as India. The government provides Business Loans up to INR
50,000 through various banks and other agencies. This is a working
capital loan and can be used to buy utensils, refrigerators, gas
connections, and other related items. There is a one-month gap before
loan repayments start, and the loan has to be repaid in a maximum of
36 months. The lenders are allowed to decide interest rates based on
market conditions.
Cent Kalyani Scheme
Imagine a Business Loan scheme with interest rates lower than Home Loan Interest Rates! This is the Cent Kalyani scheme on offer by the Central Bank of India. The loan scheme is exclusively for women and allows borrowings of as high as INR 1 crore. Women involved in rural businesses, village and cottage industries, micro, small and medium enterprises, self-employed women, agriculture and allied activities, retail trade, and government-sponsored programs are considered eligible for this scheme. The icing on the cake is that the loan offering does not need any guarantor to sign the loan or collateral to be kept with the bank.
Punjab National Bank Mahila Udyam Nidhi plan
Punjab National Bank is one of the leading banking and financial services companies in India, and they have committed to the empowerment of Indian women entrepreneurs. The scheme brings loans of up to a maximum amount of INR 10 lakh with market regulated interest rates. These loan schemes are available to women who want to open beauty parlours, daycare centers, public transport vehicles, and also cover many other business plans. These are soft loans offered for periods that can span as long as 10 years. The loan scheme is available all over India.
Punjab and Sindh Bank Udyogini scheme
This is a scheme offered for women in the 18 -45 years of age bracket as long as their family income is less than INR 45,000 in a year. However, for women who are widowed, disabled, or destitute, the income limit rule is not applicable. The loan amount is up to INR 1 lakh. SC/ST category women get a subsidy of up to INR 10,000 or 30% of the loan, applicable on the lower amount. General category women get INR 7,500 or 20% subsidy, the lower amount applicable. This scheme is also on offer by Karnataka State Women’s Development Corporation.
Dena Shakti Loan Scheme
Dena
Bank is another institution which offers women-specific loan and
welfare scheme. Their Dena Shakti scheme provides a loan in
categories of agriculture, manufacturing, retail, housing, and
education. The loan amount starts under microcredit for as low as INR
50,000 and can be as high as INR 20 lakhs. As a special offer, the
bank offers a 0.25% interest rate discount to eligible applicants.
The bank has merged with Vijaya Bank and Bank of Baroda who have
branches in a number of states where you can check for scheme
availability.
Oriental Bank of Commerce Mahila Vikas Yojana
Oriental Bank of Commerce provides a 7 years long loan which can be up to INR 25 Lakhs. The bank offers a 2% interest rate discount. The main eligibility requirement is that at least 51% of the ownership of the business should be with the female applicant. The bank aims to promote women who want to start their own business with this scheme.
Mudra Loan for Women Entrepreneurs
Mudra
Loan is the premier scheme
launched by the current Prime Minister to improve new businesses and
make more people as job givers instead of job seekers. The scheme is
gender-neutral and still comes across as one of the best Business
Startup Schemes for women entrepreneurs. The loans are available for
any amount between INR 50,000 to INR 50 lakhs. The most significant
factor of this scheme is that loans of up to INR 10 lakh can be
availed without any collateral or security. The interest charged is
as low as 1 percent per month, and loan amounts up to INR 50,000 can
be repaid in as long as 5 years. For higher amounts, the scheme
allows lending bank to decide the period.
Women entrepreneurs can be a great driver to the growth of the economy of the country, and they have traditionally contributed to the upliftment and improvement of the economic situation of their families and communities. Shining examples of these are many women’s self-help groups that are successfully working all over India. Understandably, the government and its various institutions should be working to help as many women start businesses that can help generate employment, provide services to people who are unserved or underserved.
