Empowering Women: Business Loans for Women Entrepreneurs

Posted on Monday, December 16th, 2024 | By IndusInd Bank

With a rise in the number of start-ups in India, women entrepreneurs are also leading the way to significant business and economic growth in the country. They are becoming role models and building pathways for the next generation. To help businesswomen achieve sustainable growth and development, financial institutions and government offer a number of options specially designed to empower them and provide financial assistance.

MUDRA loan for women

The MUDRA (Micro Units Development & Refinancing Agency) loan scheme is offered under Pradhan Mantri Mudra Yojana. To promote and support women entrepreneurs, the government has launched a special business loan program under the MUDRA loan scheme specifically for women. Under this scheme, NBFCs, banks and other financial institutions have been asked by the government to provide funds to women at reduced interest rates.

Types of MUDRA loan yojana for women:

Shishu Loan: This scheme enables entrepreneurs to get loans of up to ₹ 50,000

Kishor Loan: Under this scheme, entrepreneurs can get loans ranging from ₹ 50,000 to ₹ 5,00,000.

Tarun Loan: Businesswomen can obtain loan amounts ranging from ₹ 5,00,001 to ₹ 10,00,000 under this scheme.

Women between the ages of 18 and 65 can apply for this scheme and use the loan to start a non-farm, non-corporate business such as tailoring, spa services, beauty salons, etc. If you fit this criteria, apply for a business loan now!

Udyogini Yojana

This scheme is developed by the Women Development Corporation and focuses on helping women below the poverty line to act on their aspirations and become independent. This scheme provides small business loans of up to ₹ 3 Lakhs. In this way, the Udyogini Scheme helps build micro-enterprises that, in turn, support the country’s economy. Interest-free loans are also available for women who want to start a small business in the agricultural sector under this scheme.

Women aged between 18 to 55 years can apply under this scheme for micro-businesses like bakeries, groceries, catering services, etc.

Annapurna Scheme

Annapurna Scheme provides business loans of up to ₹ 50,000 to women in India and helps them start their own catering business from home. The amount helps them to get all the equipment and utensils required. This scheme is offered by State Bank of India and Bharatiya Mahila Bank. The Government has waived off the first month’s EMI for loans under this scheme and the repayment period is 3 years with no collateral required.

Applicants between the ages of 18 and 60 can benefit from this scheme if they are starting tiffin services or food processing/venting units.

Stree Shakti Yojana

The Stree Shakti Yojana empowers self-employed women by providing business loans of up to ₹5 Lakh. A woman applicant should hold majority ownership in the business for which the loan is being taken. These women should also be enrolled under the state’s Entrepreneurship Development Programs. This scheme is available in all branches of the State Bank of India and a concession of 0.5% is given on loans above ₹ 2 Lakhs.

Apart from loans for women to start a business, banks and financial institutions also encourage women entrepreneurs by providing support in the form of loans against securities. These loans are available at competitive interest rates and flexible repayment options.

Personal Loans can also be availed based on the financial position of the applicant. For housewives, the option to add a co-applicant is available.

Conclusion:

The availability of finance also provides confidence to businesswomen who can take the much-needed leap and build an independent future for themselves.

We, at IndusInd Bank, salute such courageous women and urge them to join our community where we offer carefully curated plans to help them at each step of their entrepreneurial journey.

IndusWE community – https://www.indusind.com/in/en/business/induswe/about-induswe.html

If you have a business for more than 2 years, apply for quick business loans at competitive rates and enjoy a hassle-free experience.

Recommended Read: https://www.indusind.com/iblogs/categories/msme/a-guide-to-obtaining-an-msme-working-capital-loan-in-india/

Disclaimer:

The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.