There are many types of loans and schemes that are specifically framed for women entrepreneurs. These schemes are beneficial as they provide relaxation for collateral security requirements as well as rate of interest’ perspective. Visit: https://financebuddha.com/blog/small-business-loans-for-women

1. Small Business Loans for Women

2. Business is meant for people who are ready to take challenges in life. And
if a woman decides to take up this challenge, the Government of India is
here with lots of supportive schemes to handhold and to ensure the
experience is smooth as possible. In the past two decades, the number of
women-owned businesses has increased and the reason for this is
availability of various schemes by the Government to support their
initiatives. Whether it is an existing business or a business idea that is very
innovative, there are many banks in India which are ready to offer
business loans plus there are quite a lot Government approved schemes.

3. Loans for Women owned Small Businesses
Of late, many public and private sector banks have come up with lending
schemes for women entrepreneurs. There are many types of loans and
schemes that are specifically framed for women entrepreneurs. These
schemes are beneficial as they provide relaxation for collateral security
requirements as well as rate of interest’ perspective. In most cases, bank
loan interest rates for women entrepreneurs vary from 0.25% to 1% only.

4. • Annapurna Scheme:
Any women who have ownership in a business can enjoy the benefits of
this scheme. And this is specific to food catering industry. SBI is the main
source for this scheme all over India. The number of beneficiaries
reported under Annapurna increased in 2016 by 1,47,538 as compared to
2014-15. The growth is 18.9% in percentage terms.

5. Some of the key highlights of this scheme are:
• Annapurna scheme was launched in 2000-2001.
• Up to 10 kg food grains is offered for free for individuals aged above 65
years (provided that the person is not getting pension).
• This schemes was launched by Ministry of Rural development.
• This is for women entrepreneurs who are into food catering industry.
• Within 36 monthly installments loan amount should be repaid along with
interest.
• The maximum loan amount offered is just Rs. 50,000.
• Collateral and guarantor is essential for this type of loan.
• The rate of interest applicable on loan is according per market rates.
• EMI is free for one month after the loan disbursal.

6. • Bharatiya Mahila Bank:
If a woman entrepreneur is looking to start a new venture then this
scheme is best. Through this scheme preference is given for applicants
who are involved in retail sector, Micro loans, loan against property and
also SME loans. This is one of the best entrepreneur loans offered for
women as compared to other ones. Some of the loans offered through
this scheme are SME easy loan, Beauty parlour loan, Creche loan/ child
day care centre loan, catering service loan and so on.

7. Some of the key highlights of this scheme are:
• This scheme was inaugurated in the year 2013 by Former Prime Minister
Manmohan Singh.
• Though it accepts deposits for all individuals, preference is given for
women applicants.
• After Pakistan and Tanzania, India is the third country to have bank
specifically for women.
• The first Bihar branch of Bharatiya Mahila Bank was opened in Pune.
• The account can be opened with zero balance.
• There are 22 branches in India for this bank.
• Net banking facility is also offered.
• While other banks give only 5 free ATM transactions, this bank offers 10
free hits.

8. • Stree Shakthi Package:
Any women who have more than 50% ownership in a business can enjoy
the benefits of this scheme. Though all banks offered this scheme, SBI is
the main lender of loans with this scheme. Upto 0.50% concession can be
availed by women applicants through this loan only if the loan amount is
above Rs. 2 lakhs. In order to eligible for this scheme the woman should
have participated in the Entrepreneurship Development Programmes. Any
small scale units that are managed by one or more women can avail this
scheme. Additional concessions are offered if the women are trained for
the business she is going to start. Various training programmes are
arranged by SBI bank in order to promote women entrepreneurship. And
according awards and recognitions are offered.

9. Some of the key highlights of this scheme are:
• Minimum financial interest in the business should be 51% for the woman
applicant.
• 50% concession is offered on scheme if loan amount is beyond Rs. 2 lakhs.
• It is a must that woman should have participated in the Entrepreneurship
Development Programmes.
• This scheme is mostly offered by State Bank of India.
• This scheme is also offered by Nationalized banks, Small Industries
Development Bank of India (SIDBI) and State Finance Corporation.
• Training and awards offered through this scheme are Entrepreneurship
Development Programmes and TREAD – Trade Related Entrepreneurship
Assistance and Development.

10. • Dena Shakti Scheme:
This scheme is specially offered by Dena bank only for all women
entrepreneurs. Upto 0.25% reduction on rate of interest is offered to
women on the basis of this scheme. Sectors covered through this loan are
manufacturing, agriculture, retail stores, micro-credit and small
enterprises. Maximum Rs. 20 lakhs is offered as loan for housing, retail
trading and education industry and Rs. 50,000 is offered as micro credit.

11. • Cent Kalyani Scheme:
Central Bank of India has launched this scheme. Rate of interest will vary
according to market rates. This scheme promotes women entrepreneurs
who are involved in village and cottage industries, small, micro and
medium enterprises, agriculture and any allied activities, self-employed
women, retail trade and also government sponsored programmes. Loan is
offered upto 1 crore without any guarantor and collateral. If the loan
amount is Rs. 10, 00, 000 then rate of interest will be 9.70% + 0.25% =
9.95% and if the loan is for Rs. 10, 00, 000 – 100, 00, 000 then rate of
interest will be 9.70% + 0.50% = 10.20.

12. • Mahila Udyam Nidhi Scheme:
Punjab National Bank launched this scheme and the maximum amount
you can get as loan through this scheme is just Rs. 10 lakhs. The borrower
has option to repay the loan within 10 years tenure. Small scale sector is
targeted with this scheme. Based on the market rates, rate of interest on
the loan will be considered. This scheme promotes businesses such as
beauty parlours, buying auto rickshaws, day care centers, two-wheelers
and cars purchasing.

13. • Udyogini Scheme:
Saraswat Bank promoted this scheme to ensure women entrepreneurs get
loans at low rate of interest in an easy manner. This type of loan is offered
for retail and small-business enterprises and for agricultural activities.
Loan is offered at minimum or no processing fees for women
entrepreneurs. Loan up to Rs. 2 lakhs is offered for micro enterprises, loan
between Rs. 2 lakhs –Rs. 50 lakhs is offered for small scale enterprises and
loan above Rs. 50 lakhs is offered for medium enterprises.