Even after the Central Government has adopted several fruitful initiatives to support small scale businesses in the country, it couldn’t bring up the number of women entrepreneurs. While the male entrepreneurs in the country have crossed 50 Mn threshold, women entrepreneurs constitute only 13.76%. The central government has come up with good schemes to strengthen women involvement in the entrepreneurship segment. Let’s take a look at the MSME loans available exclusively for women.
Stand Up India is a loan scheme that caters to entrepreneurs from SC/ST categories and women who have got innovative ideas. As per the scheme, loan amounts from Rs. 10 Lakh to Rs. 1 Crore will be provided. No credit will be granted under the scheme for expanding existing businesses. The loan will be granted to only fresh projects. Thus the scheme is much beneficial for new entrepreneurs. There are no barriers with respect to age, education, or income in order to obtain this loan. There should also be no collateral security while lending.
For more details:
Applications can be made to the Lead District Managers of all districts or to the NABARD office. Applications can also be made through District Standards and Stand Up India website.
Mudra Yojana is one of the popular schemes from the Central Government dedicated to women who aim to start small enterprises like beauty parlours, tuition centres and sewing units. Once the loan is approved, you will receive Mudra Cards which is much like the credit cards. You can withdraw money through such credit cards. You can avail loans between Rs. 50,000 and Rs. 5 Lakh. The need for collateral arises only if the loan amount exceeds Rs. 10 Lakh. There are three plans under the scheme–Shishu Plan with loans up to Rs 50,000 for new businesses; Kishore plan with loans between Rs 50,000 and Rs 5 lakh for well-established enterprises’ and Tarun Plan for loans between Rs 5 lakh and Rs 10 lakh for expansion of enterprises.
The Annapurna Scheme is offered by the State Bank of Mysore for women who run food catering businesses. The maximum loan amount of Rs. 50,000 needs to be repaid in 36 months.
For women who own 50% or more of a self-financing venture, the ‘Stree Shakthi’ package is available through SBI branches. If the loan amount exceeds Rs 2 Lakh, the interest rate will fall by 0.5%.
Dena Shakti Scheme is a Dena Bank loan scheme for women working in agriculture, manufacturing, retail, micro-credit and small enterprises. Loans up to Rs. 20 Lakhs will be granted.
The Udhyogini scheme is provided by Punjab and Sindh Bank for women in the age bracket of 18 to 45. The scheme is dedicated to women who are engaged in agriculture and small scale enterprises. The maximum amount is Rs 1 Lakh. There is no income limit for widowed, destitute or differently-abled women.
Bhartiya Mahila Bank Business Loan is a scheme for women who want to start new ventures in retail trade. For manufacturing enterprises, loan up to the maximum value of Rs. 20 Crores will be given.
Central Bank of India’s Cent Kalyani Scheme is to support women in expanding or redefining their existing venture. This loan will benefit women participating in rural, cottage industries, small and medium enterprises, self-employment, agriculture, allied activities, retail trade and government-sponsored programs. Rs 1 Crore will be the maximum loan amount.
Mahila Udyam Nidhi is a scheme implemented by the Punjab National Bank for ten-year tenure for women in small scale enterprises. Loans can be granted for starting beauty parlours, daycare centres or to buy auto-rickshaws, two-wheelers and cars for business or self-employment.
TREAD or trade-related entrepreneurship assistance and development scheme is a scheme for giving credits to women’s projects, special training and counselling.
These innovative schemes introduced by the Central Government need to be popularized. Knowing about this financial assistance and schemes will help women entrepreneurs start their venture with confidence.