India is now witnessing a remarkable growth in women entrepreneurship, with women taking the leadership in various sectors of business in medium small and micro businesses like never before. However, getting support in the form of funding is still a significant challenge for many female business owners. To solve this gap the government of India has come up with various plans to empower the women-owned businesses throughout India. In this article we will introduce you to various such schemes from the GOI for women entrepreneurs in the MSME sector.
The Indian economy is also having increased dependency on women business owners when compared to the past where most of the growth was powered by men in business. The increment in number of women entrepreneurs is a welcoming change for the country and its economy, setting a new standard. However one of the biggest roadblocks to Women entrepreneurs in India is basic finance requirements for business scaling, for which collateral free business loan could be one among the many options, however being supported by the government adds security for their businesses. Let’s now look into the schemes provided by GOI:
Business Loan Schemes for Women
Several government-backed and bank-specific schemes offer attractive terms and conditions to women entrepreneurs. Here are some of the most prominent ones:
- Stand-Up India Scheme:
- Eligibility: The eligibility for this scheme is for Women entrepreneurs belonging to Scheduled Caste (SC), Scheduled Tribe (ST), or general category.
- Loan Amount: Between Rs. 10 lakh and Rs. 1 crore.
- Purpose: Setting up a greenfield enterprise in manufacturing, services, or trading sectors.
- Key Benefits: Collateral-free loans, concessional interest rates, and government support.
- Mudra Yojana:
- Eligibility: Women entrepreneurs engaged in micro, small, and medium enterprises (MSMEs).
- Loan Amount: Up to Rs. 10 lakh.
- Purpose: Financing various business activities, including working capital, purchase of equipment, and expansion.
- Key Benefits: Quick processing, minimal documentation, and flexible repayment options.
- Pradhan Mantri Mahila Shakti Kendra (PMMSK):
- Eligibility: Self-Help Groups (SHGs) with a majority of women members.
- Loan Amount: Up to Rs. 10 lakh per SHG.
- Purpose: Financing income-generating activities for women, such as agriculture, handicrafts, and small-scale industries.
- Key Benefits: Group liability model, easy access to credit, and skill development training.
- Bharatiya Mahila Bank (BMB):
- Eligibility: Women entrepreneurs.
- Loan Amount: Various loans for women products with flexible repayment options.
- Purpose: Financing business activities, including working capital, term loans, and project finance.
- Key Benefits: Dedicated banking services for women, preferential interest rates, and customized financial solutions.
- State-Specific Schemes:
- Many state governments have their own schemes to support women entrepreneurs. These schemes may offer subsidies, interest rate waivers, and other incentives. It’s advisable to check with your state government’s department of industries or MSME for specific details.
Conclusion
The government of India’s interest for women’s empowerment in the country is visible if we look at the different types of business loan schemes designed to support women msme owners. By availing these schemes, women can get over the financial barricades and take their businesses to new heights easily. It is very important for women business leaders to look at these solutions, understand the required eligibility needs and apply at the earliest to ensure they get the benefits. Additionally, seeking guidance from financial institutions, government agencies, and business mentors can further enhance their chances of securing financing and achieving their entrepreneurial goals.
Remember, these schemes are dynamic, and terms and conditions may change. It’s always recommended to consult with a financial advisor or directly with the lending institutions to get the latest information and guidance. We also would suggest female business owners to consider NBFCs who offer business loans as they are known to give loans for business without seeking collateral pledging.