Many banks and financial companies in India offer small business loans to women to help them run or expand their small businesses. The interest rates for these loans range between 8.75% and 9.00% while the repayment tenure can go up to 10 years. Women can avail a maximum of Rs. 1 crore as loans to fund their small businesses.
|Name of the Bank||Name of the Scheme||Interest Rate||Loan Amount||Repayment Tenure|
|Central Bank of India||Cent Kalyani||8.75% to 9.00%||Up to Rs.1 crore||-|
|Punjab National Bank||Mahila Udyam Nidhi Scheme||Depends on Project cost||Up to Rs.10 lakh||Up to 10 years|
|Oriental Bank of Commerce||Orient Mahila Vikas Yojana Scheme||Concession of 2% on the normal interest rates||Up to Rs.25 lakh||Up to 7 years|
|MUDRA||Pradhan Mantri Mudra Yojana||Linked to MCLR||Up to Rs.10 lakh||Up to 5 years|
|State Bank of India||Stree Shakti Package||Concession of 0.5% for loans over Rs.2 lakh||-||-|
|Rate of Interest||Margin||Processing Fee||Quantum of Loan|
||20%||Nil||Up to Rs.1 crore|
|Rate of Interest||Loan Amount||Repayment Tenure||Moratorium Period|
|Based on market rate||Rs.10 lakh||10 years including moratorium period||5 years|
|Rate of Interest||Quantum of Loan||Margin||Processing Fees|
|Will vary from lender to lender||
The basic eligibility for women to avail a small business loan is that they should either own the whole small or microenterprise or hold at least 51% of the stakes in the enterprise. The other eligibility criteria such as minimum age, income, etc., will vary from lender to lender.
|Application form||Filled and duly signed|
|KYC Documents||Business entity proof, partnership deed, incorporation certificate, shops and establishment certificate, Articles of Association (AOA)|
|Bank Statements||For the last 6 months|
|Photographs||Passport-size photograph of applicant/co-applicants|
Answer: The EMI amount that you need to pay each month will depend on the amount of loan you avail, the interest rate charged by the lender, and the repayment tenure you choose. You can use the EMI Calculator to ascertain the EMI on your small business loan by entering the loan amount, tenure, and the interest rate.2. Do I have to provide security to avail a small business loan?
Answer: Providing collateral or security is not mandatory to avail a small business loan but providing one can help you fetch lower interest rates and can enhance your loan amount.3. I have a small business that I set up with my husband. Can I get a discount on the interest rate on a small business loan to expand our business?
Answer: If you wish to avail a small business loan to scale your business, you can avail the ones that are meant especially for women entrepreneurs as the interest rates are lower. However, to be eligible for such loans, you need to own 51% stakes in the business.4. I wish to open a fashion boutique. Am I eligible to get a business loan?
Answer: Yes, under the Pradhan Mantri Mudra Yojana (PMYY), you can avail a business loan to start your own fashion boutique. Any activity that results in income generation is eligible for a small business loan under the Mudra scheme.5. Can I avail the Mudra loan from any bank?
Answer: Yes. All commercial banks, RRBs, small finance banks, microfinance institutions, NBFCs, etc., offer loans under the Mudra scheme.
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