8 Government Schemes Women Entrepreneurs should know about

Updated: May 1, 2020

India is a land of many opportunities. An obvious manifestation of what lies in the startup boom the country has seen in the past couple of years. Within the following guide, we record government schemes women entrepreneurs may read and avail.

From foods, leisure, travelling, sanitation, IT, automobile, entertainment and perhaps even innovation, a fresh production of emerging entrepreneurs have exploited into diminished researched businesses, managed to provide choices and build the preparation for successful businesses.

And barring a couple of names which stand out, women continue to be a distinct minority at the booming entrepreneurial location.

While elimination, patriarchy and lack of social assistance from their own families might maybe be a few reasons for several women, for many, the shortage of financial capital might be a substantial roadblock in their entrepreneurial journey.

We list down eight schemes introduced by financial institutions in India, for example, nationalised banks to ensure women entrepreneurs could Find the necessary financial aid:

Annapurna Scheme

Under this plan, the Government of India offers women entrepreneurs from the food catering company, loans into Rs.50,000. The loaned amount may be utilized for working capital conditions, for example, buying cutlery, utensils, gas connection, refrigerator, mixer cum grinder, and utensil rack, and tiffin boxes, working desk and water filter etc..

A guarantor is necessary to get the loan, as well as the assets of this company, have to be pledged as security.

After accepted, it ought to be paid back in 36 monthly obligations (which equates to a period of 3 years). Adhering to that the loan is warranted, the lender doesn’t have to cover the EMI in the first month. The interest rate is determined based upon the business rate and the creditor involved. The State Bank of Mysore and Bharatiya Mahila Bank offer this plan.

Stree Shakti Bundle For Women entrepreneurs

The Stree Shakti Bundle is a superb SBI-run approach to promote entrepreneurship among women by providing specific concessions. This approach is qualified for women who’ve majority ownership (over 50%) in just a small business venture. Another condition is that these entrepreneurs will need to get enrolled in the Entrepreneurship Development Programmes (EDP) organised using their individual state services. This strategy enables women to find an interest concession of 0.05 per cent on loans exceeding two lakhs. No security is needed for loans around 5 lakh at the case of small business units.

Cent Kalyani Scheme

This approach under the Central Bank of India may be obtained by both the new and present entrepreneurs and self-employed women for micro/small partnerships such as farming, handicrafts, food-processing, garment production, beauty, canteen, mobile restaurants, and circulating libraries, and afternoon creches, STD/Xerox stalls, tailoring etc. (in other words, agriculture, cottage industries, small and medium companies, government-sponsored applications and retail commerce)

Under this plan, loans up to Rs.1 crore are justified with a gross interest rate of 20 per cent. You do not require any security or guarantors for this specific loan. Interest rates depend on market rates. The loan tenure will be a max of seven years including a moratorium period of 6 months to 1-year.

Mudra Yojana Scheme

This is a general plan for smaller components which women entrepreneurs can avail too. Launched by nationalised banks below the Pradhan Mantri Mudra Yojana, this could possibly be utilized to put in a beauty parlour, lodging centre, tailoring unit, etc. Loans from Rs.50,000 up to Rs.50 lakh are sanctioned under this scheme. No collateral and guarantors are wanted for loans under Rs.10 lakh.

Shishu — Grants up you up to a max limit of Rs.50,000 to get a brand-new company with the interest rate being 1 percent per month or 12 per annum. The repayment period up to five years.

Kishore — Grants loans of Rs.50,000 up to Rs 5 lakh for well-established businesses. The rate of interest fluctuates with banks as it’s contingent on the plan guidelines and credit history of the candidate. The repayment period is based upon the discretion of the lending company.

Tarun — Grants loans of Rs.5 lakh up to Rs.10 lakh for business development. The rate of interest is contingent on the creditor in line with the strategic principles and credit history of the candidate. The repayment period depends on the discretion of the lending company.

To get a succinct overview of curiosity rates for a variety of banks, check the post out of Bankbazaar.

Mahila Udyam Nidhi Scheme

Founded by Punjab National Bank and Small Industries Development Bank of India (SIDBI), this approach encourages women entrepreneurs to prepare for a brand new little enterprise by expanding loans around Rs.10 lakh to be repaid within ten years. SIDBI also includes a moratorium period. The interest will be determined by the market rates.

Under this approach, SIDBI delivers different approaches for beauty parlours, daycare centres, purchase of auto-rickshaws, two-wheelers, cars, etc. Additionally, it assists with the updating and modernisation of present tasks.

Dena Shakti Scheme

It gives loans around Rs.20 lakh for women entrepreneurs in agriculture, production, micro-credit, retail stores, or small enterprises. Furthermore, it provides a concession of 0.25 percentages on interest. Loans around Rs.50,000 are awarded under the microcredit class.

Orient Mahila Vikas Yojana Scheme

Founded by Oriental Bank of Commerce, women, who assert a 51 per cent share capital independently or jointly at a newfound enterprise, are eligible for the loan. No security is necessary for loans from Rs.10 lakhs up to Rs.25 lakhs for smaller companies. The repayment period is seven years. Furthermore, it provides a concession on the interest rate of about two per cent.

Bhartiya Mahila Bank Business Loan

The plan was implemented by Bhartiya Mahila Bank (BMB) which was later merged with State Bank of India in 2017. A public small business banking company established in 2013, it supplied women entrepreneurs business loans up to Rs.20 Crores for meeting working capital requirement, business development, or manufacturing companies.

Furthermore, it supplies unique small business loans utilizing a lucrative rate of interest and permits collateral-free loan approximately Rs.1 crore under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) cover.

Women entrepreneurs may also be provided 0.25 per cent concession in the rate of interest. It sports a blend of working funding and term loan. The repayment program is flexible and has to be paid back in seven years.

Shringaar- The BMB Shringaar loan is more suitable for self-employed women or homemakers who want to build a parlour, purchase gear, or match daily small business expenses. The loan doesn’t request that you provide any collateral.

Parvarish – Similarly, BMB Parvarish loan will be for self-employed women or homemakers to prepare day-care creches. The top limit of this loan might be Rs.1 Crore free of collateral coverage under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGSTSM) scheme.

Annapurna – Food entrepreneurs, between 18 to 60 years, attempting to start or expand their own company might avail this loan. Its features are very much like that of the State Bank of Mysore’s Annapurna strategy, minus the fact it does not require security coverage.

The above listing is by no means an extensive listing and that there are a whole lot of schemes offered for women entrepreneurs.

This article was first posted by The Better Indian.