Women-owned business start-ups have picked up popularity in the country in the last couple of decades. Although majorly related to service sector, growth and emergence of women-owned businesses is making a great contribution towards the country’s economic development. Apart from bringing on economic independence, these women-led businesses also created job opportunities for many. Women entrepreneurs, however have to struggle a lot to get business funding.
There are various banks offering loans exclusively meant for women entrepreneurs. However it is important to a well-informed decision by understanding all calculations and clauses of lending schemes being offered by different banks. Some of the online business loans for women in the country are:
Listed below are the various banks and financial lenders offering business loans for women:
|Bank Name||Interest Rate||Loan Amount||Repayment Tenure|
|Central Bank of India||
||Up to Rs.1 crore||Up to 7 years|
|State Bank of India||Lower than base rate – will be set as per the terms and conditions set by SBI||Up to Rs.5 lakh (Unsecured)||As per the terms and conditions set by SBI|
|Bharatiya Mahila Bank||As per the terms and conditions set by Bharatiya Mahila Bank||Up to 1 crore||Up to 7 years|
|Bank of Baroda||As per the terms and conditions set by Bank of Baroda||Up to Rs.1 crore||As per the terms and conditions set by Bank of Baroda|
|Lending Kart||As per the terms and conditions set by Lending Kart||Up to Rs.1 crore||Up to 12 months|
|Fullerton India||13% p.a - 21% p.a.||Up to Rs.50 lakh||12 months – 48 months|
|Tata Capital||19% p.a. onwards||Rs.5 lakh – Rs.50 lakh||12 months – 36 months|
Listed below are the key highlights of the business loan for women offered by Central Bank of India:
Listed below are the key highlights of the business loan offered by State Bank of India:
Listed below are the key highlights of the business loan for women:
Listed below are the key highlights of the business loan for women offered by Bank of Baroda:
Listed below are the key highlights of the business loans offered for women by Lending Kart:
Listed below are the key highlights of the business loan offered by Fullerton India:
Listed below are the key highlights of the business loan for women offered by Tata Capital:
This scheme is meant for women entrepreneurs who are involved in partnership firms and individual businesses. Annapurna scheme offers financial support to women business owners who want to start a food catering business. According to this scheme, a composite term loan can be availed for up to a maximum of Rs.50,000. The maximum loan tenure for this loan is 36 months with a one month moratorium period. Annapurna Scheme can be obtained for generating working capital for buying kitchen equipment, utensils, water filters and other equipment needed for catering business. The interest rates towards this loan is available at prevailing market rates. A guarantor is needed when taking this loan and the woman entrepreneur is required to submit assets to the bank as collateral in order to secure the loan.
The Stree Shakthi Package for women is for women who want to start small businesses and have 50% ownership in the firm. Only women who have pursued the EDP (Entrepreneurship Development Programmes) conducted by state level agencies are allowed to apply for this loan. The Stree Shakthi Package for Women Entrepreneurs offers all kinds of assistance required for starting a business. For loans higher than Rs.2 lakh, a concession on interest rate of up to 0.50% can be obtained.
The Dena Shakti Scheme offered by Dena Bank is for women who want business loans to be utilised in the agriculture, manufacturing sector as well as allied activities. This scheme promotes female entrepreneurship enabling women to avail financial services from the bank. Under this scheme, a concession of 0.25% is applied on the interest rate. The Dena Shakti Loan can also be utilised by owners operating micro-credit stores, retail stores or even small enterprises.
Female entrepreneurs can avail the Cent Kalyani Scheme from Central Bank of India, where financial aid is provided for setting up a new business. This scheme is meant for experienced as well as new business owners, self-employed and professionals. This business loan for women can also be applied for, by owners of small scale industries, retail traders, cottage industries or women engaged in agricultural and allied businesses.
A Punjab and Sind Bank initiative, the Udyogini Scheme’s objective is to promote female entrepreneurship. This scheme can be availed at easy terms and affordable interest rates online. Using this loan, women owners can start business enterprises, agricultural set-ups as well as small scale industries. Self-employed female entrepreneurs and retail traders can also apply for the Udyogini Scheme.
The Mahila Udyam Nidhi Scheme or MUN is provided under Small Industries Development Bank of India. Under this scheme, women entrepreneurs can get maximum financial support of up to Rs.10 lakh for the purpose of establishing new industrial venture in the small scale sector.
Aside from the encouraging fact that these lending schemes greatly encourage and support women, many are still unable to take advantage of these exclusive loans. This is due to lack of knowledge of the existence of these schemes and its features. Becoming a part of a woman’s network can prove helpful in availing these women-centric loans. Microfinance institutions, NGOs, government schemes and self-help groups can help women in interacting with fellow female entrepreneurs, enabling them to learn from their experience.
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