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How to Start a Successful Business: Schemes for Women Entrepreneurs

The government of India has come up with numerous schemes specially designed for women business owners

Tuesday October 27, 2020 11:29 PM, ummid.com News Network

Women Entrepreneurs

Earlier, there was a time of male mainstream in society, especially in the business world. The time has changed, and many women entrepreneurs have now started entering the business industry. However, there are a few reasons for several women, for the majority, lack financial capital that can be a significant hurdle in running their business successfully. As a way of encouraging such budding businesses, the government has come up with numerous schemes specially designed for women business owners. Let’s have a look at the available schemes for women entrepreneurs.

Annapurna Yojana

The Government of India introduced the Annapurna scheme, offering women entrepreneurs associated with the food and catering loans of up to ₹50,000. Once the loan is approved, the borrower doesn't have to pay the EMI for the first month; the amount has to be repaid in 36 monthly instalments. The interest rate charged is determined based on the current market rate and the financial institution the borrowers has availed of the Annapurna scheme.

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Mahila Udyam Nidhi Yojana

The Punjab National Bank and Small Industries Development Bank of India (SIDBI) introduced a Mahila Udyam Nidhi scheme. It aims to support women entrepreneurs to set up a new small-scale venture by extending a loan amount of up to Rs.10 lakh that has to be repaid in 10 years. The interest charged on Mahila Udyam Nidhi Scheme depends upon the market rates.

Dena Shakti Scheme

Women entrepreneurs owning or willing to start a business in the field of agriculture, manufacturing, micro-credit, retail stores, or have a small enterprise can apply for this scheme. The Dena Shakti Scheme provides loans for women entrepreneurs of up to Rs. 20 lakhs and provides an interest concession of 0.25 per cent on loan. Women business owners can avail a loan of up to ₹50,000 by applying under the microcredit category.

Stree Shakti Yojana

The Stree Shakti Yojana is a unique scheme that supports women entrepreneurship. The scheme offers certain concessions for women business owners. Women who have the majority of ownership in the business are eligible for the scheme. The Stree Shakti Yojana allows women to avail a concession of 0.05 per cent on the interest rate on a loan amount of more than Rs. 2 lakh.

Bhartiya Mahila Bank Business Loan

The Bhartiya Mahila Bank (BMB) is a public sector banking company that implemented a scheme in which women entrepreneurs are offered loans of up to Rs. 20 Crores. The loan funds can be used for business purposes such as working capital requirements, business expansion, or manufacturing enterprises. Also, there are different plans under the Bharatiya Mahila Bank Business Loan scheme. They are as follows:

Shringaar: The BMB Shringaar loan doesn't require you to provide any collateral security, and the loan can be applied by self-employed women or homemakers planning a startup or meets their daily business expenses.
Parvarish: The maximum loan limit of BMB Parvarish loan can be Rs. 1 Crore under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGSTSM) scheme.
Annapurna: Entrepreneurs in the food business need to be between 18 to 60 years, willing to expand their small business, can avail this loan, minus the fact that it does not require collateral security.

Udyogini Scheme

Under the Udyogini scheme, the Government has initiated this scheme for the welfare and development of Women Entrepreneurs in India. The scheme can help provide the financial assistance required by small businesses. The Women Development Corporation has implemented the scheme to promote and motivate women entrepreneurship among the poor by providing financial support to women business owners. This Udyogini scheme majorly supports and helps illiterate women living in rural and backward areas in setting up their businesses.

Cent Kalyani Scheme

The Cent Kalyani Scheme is a government scheme that offers financial help for both existing and new entrepreneurs and self-employed women. MSEs that are in the farming, agriculture, and retail trade industries are all eligible to apply for the Cent Kalyani Scheme. You do not have to provide any collateral as security or need any guarantors to avail the loan. The interest rate on this loan will be based on market rates, and the repayment tenure of the loan will be a maximum of 7 years.

Mudra Loan for Women

Mudra Yojana was launched by the Indian Government to offer financial support for enthusiastic women entrepreneurs. This scheme does not require any collateral to grant a business loan for women. However, the scheme is divided into categories under which a mudra loan application can be applied. They are as follows:

Shishu Loan: Businesses that are in the initial stage can apply for this loan, and the maximum loan amount offered is Rs. 50,000.
Kishor Loan: This loan is for established businesses but plans on improving their services. The amount of loan granted varies from Rs. 50,000 to Rs. 5 Lakhs.
Tarun Loan: Well-established businesses that plan on expanding their reach and are short on capital can avail a loan amount of up to Rs. 10 Lakhs.

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