India has seen an amazing growth spurt in the rise of women entrepreneurs. With the increase and awareness of women's empowerment, more and more women are coming forward and building their MSME businesses.To encourage more and more women-owned businesses, the government of India and many banks have launched various initiatives to make sure that they have an easy and seamless flow of business, by providing loans, subsidies, and government grants. In the past, due to social stigmas and taboos, women have found it rather difficult and tedious to secure loans to kick-start their businesses, that hesitation is ending now, due to various initiatives. Let us go ahead and understand the different types of loan schemes and initiatives launched.
NBFCs have introduced various business loan schemes for women entrepreneurs; let us understand the best schemes launched by them.
The objective of this initiative is to help women entrepreneurs launch new businesses or expand their existing businesses.
a. New or existing women entrepreneurs engaged in their own MSME business e.g. handloom weaving handcraft, food processing, and garment making.
b. Professionals and self-employed women- doctors, chartered accounts, engineers, or trained in arts and crafts
c. Health/ beauty clinics, fashion designers, beauty parlours
d. Small business- small canteen, mobile restaurant, mobile library, day crèches, tailoring, typing, STD booths, etc. (retail trade/education and training institute/ self-help groups not eligible
To meet capital expenditure (Land/building/Plant and machinery) and day-to-day expenditure
Maximum loan of 100 lacs
7.90% p.a. to 8.25% p.a.
Term Loan Fund Based Working capital Facility - Overdraft/Cash Credit Non-Fund Based Working Capital - Letter of Credit/Letter of Guarantee etc.
Collateral security or third-party guarantee is not required as the scheme is covered under CGTMSE
Comprehensive insurance of stock, machinery/equipment, etc. with bank clause
Micro units’ development and Refinance agency launched under the Pradhan Mantri Mudra Yojana is another initiative launched for women entrepreneurs who can avail of loans with concessional interest rates.
To launch a new business, enhance/modernise existing business, meet capital expenditure (land/building/plant/machinery), and meet day-to-day business expenses
The mudra loan is divided under three schemes, each of which has a different quantum:
Shishu scheme- up to Rs.50,000
Kishor scheme- up to Rs.50,001 to Rs.5,00,000
Tarun scheme- up to Rs.5,00,001 to Rs.10,00,000
Varies as per the business requirements and profile of the applicant
Not required by the lender
Nil to 0.50% of the sanctioned loan amount
From 12 months to 5 years
ICICI bank offers secured and unsecured business loans at a fixed rate of interest.
Individuals, business owners, MSMEs, entrepreneurs, and other business entities.
To launch a new business, enhance/modernise existing business, meet capital expenditure (land/building/plant/machinery), and meet day-to-day business expenses.
Rate of interest
Quantum of loan
The bank will offer a loan of a maximum of 2 crores under the CGTMSE scheme along with a processing fee of 2% of the sanctioned loan amount
Not required by the lenders
1. Self-written business plans
2. Duly filled application form with 2 passport size photos
3. Identity proof- driving licence, Voter ID card, Pan Card, Passport, Aadhar card, etc.
4. Address proof- utility bills, passport, Voter ID card
5. Income proof- Last 6 months' bank statement, salary slips, bank statement
6. Business incorporation statement
7. Any other document required by the lender
Business loans for women come in almost every type that can be used by applicants like MSME loans, business loans, working capital loans, term loans, etc.
Small Business Loans or Microfinance lending is offered by various NBFCs, Micro Finance Institutions (MFIs), Small Finance Banks (SFBs), Regional Rural Banks (RRBs), Co-operative Banks, etc. at concessional interest rates.
Women entrepreneurs can apply for business loans under various Govt. loan schemes like Mudra Yojana, PMEGP, CGTMSE, Start-up India, and Stand-up India.
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