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From Udyagini to Annapurna Yojana: 11 Business Loan Schemes for Women Entrepreneurs in India

Pronami Chetia
Pronami Chetia
business loan
Women Entrepreneurs in India

Entrepreneurship in India means growing up innovative ideas and creative business solutions to several problems. However, the startup and MSME sectors in India are still largely male-dominated. The government has been running a variety of schemes which aims to remove every obstacle in the way of women entrepreneurs.

However, capital is always the major factor while propagating entrepreneurship. But, there’s good news for those women who want to broad their horizon and start their own business or start up. Recently, various banks are providing special loan facility at affordable rates to women entrepreneurs. A number of such schemes have been implemented by the Central Government under Woman Entrepreneur Schemes which are helping women entrepreneurs to grow in India's startup ecosystem. Let’s know about such schemes which help women entrepreneurs to start their own business.

This article will help women entrepreneurs in agriculture to fulfill their dreams. 

Mudra Yojana Scheme 

Mudra Yojana Schemea government scheme for small units — is also applicable to women who want to start a small enterprise, such as a beauty parlour, tuition centre, tailoring unit, etc. Women entrepreneurs can avail of loans from Rs 50,000 onwards and up to Rs 50 lakh under the scheme. They are required to present collateral and guarantors only if the loan amount exceeds Rs 10 lakh. There are three plans under this — Shishu plan (loans up to Rs 50,000 for new businesses), Kishor plan (loans between Rs 50,000 and Rs 5 lakh for well-established enterprises), and Tarun plan (loans between Rs 5 lakh and Rs 10 lakh for business expansion). MUDRA does not lend directly to individuals, and loans under the scheme can be availed from banks and NBFCs. Borrowers can also file an online application for MUDRA loans on the Udyamimitra portal.

Oriental Mahila Vikas Yojana Scheme

Under this scheme, the Oriental Bank of Commerce provides loans to women who, individually or jointly, own a proprietary concern. Holds 51% share capital. Under this scheme, women entrepreneurs are given loans ranging from 10 lakh to 25 lakh for small scale industries.

However, no type of guarantor is required to avail this loan. Women entrepreneurs can repay their loans over a period of 7 years. Under this, 2% loan interest rate concession is also given to women entrepreneurs.

Mahila Udyam Nidhi Scheme

Offered under the Small Industries Development Bank of India (SIDBI), Mahila Udyam Nidhi Scheme provides financial assistance of up to Rs 10 lakh to women entrepreneurs to set up new small-scale ventures. It also assists with upgrading and modernisation of existing projects. The loans are to be repaid within 10 years, which includes a five year moratorium period.


Udyogini Scheme

Under this scheme, women between 18 and 45 years of age are given loans up to one lakh rupees for working in business, agriculture, retail and small entrepreneurs sector. If the annual income of a woman entrepreneur's family is less than 45000, then only she can avail loan through this scheme. In this, a subsidy of 30% is also provided for loans up to Rs.10,000 to widows, destitute or disabled women of SC and ST categories.

Sukanya Samriddhi Yojana

Under this scheme, loans are given to women starting businesses from small enterprises. This includes tuition center, tailoring unit or beauty parlor etc. You will also be given a Mudra Card at the time of granting the loan and this Mudra Card will work in the same way as your credit card and will have a limited amount of 10% of the loan amount. At the same time, the loan amount is given between 50000 to 5 lakh rupees. Loan amount in Tarun is 10 lakh. 

Bharatiya Mahila Bank Business Loan

The Bharatiya Mahila Bank commercial loan has been implemented for women entrepreneurs who want to start a new venture from property and SME in retail. Women entrepreneurs are given a maximum loan amount of up to 20 crores under this scheme and a rebate of 0.25% is also given. The interest rate on this loan amount is usually 10.15% or more. 

Annapurna Scheme

Under the Annapurna Scheme, women entrepreneurs who want to set up food catering industry to sell food items like packaged food, breakfast etc. Under this scheme, a loan of Rs. 50 thousand is given to women entrepreneurs by the State Bank of Mysore. Women can pay it in monthly installments of 36 months. This loan will be given to fulfill the primary needs of the female entrepreneur, that is, to buy utensils and other equipment. 

Under this scheme, they can avail of a loan of up to Rs 50,000 to purchase kitchen essentials, utensils, gas connections, raw materials, water filters, etc. A guarantor is required to secure the loan. After securing the loan, it can be repaid in 36 instalments (the repayment period is three years). Further, interest rates under this scheme are decided as per prevailing market rates.

Dena Shakti Scheme

If women entrepreneurs want to grow their business in the field of agriculture, manufacturing, micro-loans, retail stores or micro enterprises and need financial support for that, this scheme is the best of all. Women entrepreneurs are given a maximum loan amount of Rs 20 lakh under this scheme for retail trade, at which the interest rate is zero point 25%. This amount can be easily repaid by the bank provided in the loan by the monthly payment of the installments by women entrepreneurs.

Cent Kalyani Scheme

If the women want to start their new venture or want to revise it, then the Central Bank of India gives them the benefit of the loan DHS scheme. Under this scheme, this loan can be availed by women entrepreneurs who are involved in business ventures like village, small and medium industries, self-employment, agricultural retail trade. Under this scheme, women entrepreneurs do not need any guarantor while taking loan and the maximum loan amount given under this scheme is 1 lakh. 

Mahila Udyam Nidhi Scheme

Mahila Udyog Nidhi Yojana has been launched by Punjab National Bank. Under this scheme, the objective is to provide loans to women enterprises involved in small scale industries. The loan amount can be easily repaid by the women entrepreneurs in a period of 10 years. Different loan schemes are also included under the Mahila Nidhi scheme, beauty parlor, day care center, auto rickshaw. The maximum loan amount given under this scheme is Rs 10 lakh.

Stree Shakti Packages

This scheme makes women entrepreneurs get discount rate in loan amount. Under this scheme, if the loan amount of a woman entrepreneur is more than Rs 20 lakh, then it provides a discount of 0.50% at that interest rate. This scheme has been operated by the government through most branches of SBI Bank.   

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