Now is the right time to say that there was once the existence of male dominance in society. Lately, the women had to do the household work, and the idea of commencing a business was a dream for them. But now, time has changed. Now there is a never-ending list of women entrepreneurs who have raised their bars beyond many such forms of domination like Indira Nooyi, Chanda Kochhar, Ekta Kapoor, Palguni Nair, Neeru Sharma, and so on.
Lack of social support from their own families and the patriarchal society that we live in is the most common reason for women’s insufficiency of financial capital, which has been a major roadblock on their entrepreneurial journey.
India’s government has taken multiple steps to encourage and build the social status of emerging women entrepreneurs. Here is a list of some of the significant government schemes for women entrepreneurs introduced by financial institutions in India, including nationalized banks that all women entrepreneurs should be aware of:
1) (BMB) Bharatiya Mahila Bank business loan:
BMB was introduced on 19th November 2013 and was consolidated with State Bank of India on 1st April 2017. BMB loan is for women entrepreneurs who want to set-up their own business. It offers bank loans up to 20 Crores for manufacturing enterprises interested in 10.15% and more. It is mandatory to repay the loan within seven years under this bank loan scheme.
2) Annapurna scheme:
This scheme provides financial assistance to women who are willing to establish a food Catering business to sell tiffin and lunch packs. Annapurna scheme grants loans up to 50,000/-. The money granted under this scheme can be used appropriately for purchasing utensils, kitchen tools, and other pieces of equipment. The repayment of the loan should be made within three years. After the loan’s approval, it is not mandatory to pay the EMI for the first month under this scheme.
3) Orient Mahila Vikas Yojana scheme:
Oriental Bank of Commerce has launched this scheme. It provides capital for women to set-up a small business. Women with a 51% share in the business are likely to get this loan. Repayment of loan should be made within seven years period.
4) Dena shakti scheme:
Dena bank introduced this scheme for women entrepreneurs interested in agriculture activities, retail business, microcredit, teaching, housing, and retail & small business operations. There is a concession of 0.25 % on the rate of interest.
5) Udyogini scheme:
The Udyogini scheme is for women entrepreneurs interested in the fields of retail business, agriculture, and similar small businesses. This scheme offers loans up to 1 lakh. The annual family income of the women willing to take the loan should be should be 45,000 or less to avail this loan. There is an exception for widowed, destitute, or disabled women. This loan is only granted to the women entrepreneurs who belong to the age group of 18-45.
6) Cent Kalyani scheme:
Central Bank of India has introduced this scheme. Cent Kalyani scheme grants loans for women entrepreneurs in multiple areas such as small and medium-sized enterprises, agricultural work, or retail trading. Under this scheme, loans up to Rs.1 crore are allowed.
7) Mahila Udyam Nidhi scheme:
This scheme is introduced by the Punjab National Bank and (SIDBI) Small Industries Development Bank of India. This scheme grants financial assistance up to Rs 10 lakh to commence a small-scale enterprise. It also encourages the upgrading and modernization of existing projects. The repayment of the loan must be made within ten years.
8) Mudra yojana scheme for women:
Nationalized banks offer these schemes under the Pradhan Yojna, which offers financial support to women entrepreneurs who are willing to start their small businesses like daycare, beauty salon, tuition, tailoring unit, etc. The loans are sanctioned between Rs.50,000 to Rs.50 lacks under this scheme. There are three schemes under this:
- Shishu – Offers loan up to Rs.50,000 for new businesses. It charges 1% interest and the repayment period is five years.
- Kishore – Offers loan from Rs.50,000 to 5 lacks for the businesses that are well established. The interest rate depends on the bank, scheme guidelines, and the applicant’s credit history. The repayment of loans also depends on the bank.
- Tarun – Offers loan from Rs.5 lacks to 50 lacks for the business’s expansion. The interest rate depends on the bank, scheme guidelines, and the applicant’s credit history. The repayment of loans also depends on the bank.
9) Trade-Related Entrepreneurship Assistance and Development) scheme
Economic empowerment of women is the key objective of this scheme: offering credit (through NGOs), training, development, and counseling extension activities related to trades, products, services, etc. The government allows up to 30% of the entire project cost as assessed by lending institutions, which would finance the other 70% as loan support to the aspirant women.