Small and medium-sized enterprises contribute significantly to India’s GDP. The sector is brimming with innovative ideas. Yet, women entrepreneurs make up only 14% of the total number of entrepreneurs in the country. While this low percentage can be attributed to several socio-cultural problems that women face, it is also a reflection of their financial problems.
The set-up, everyday operations, and expansion of small and medium enterprises require capital that is especially difficult to source for new or unexperienced businesswomen. However, government banks, private banks, and non-banking financial institutions have curated different schemes to provide financial backing to women entrepreneurs. These loan schemes for women in India come with benefits such as eased eligibility criteria and lower interest rates.
Here are some top loan schemes for women in India offered by different financial institutions.
1. Mudra Yojana Scheme
Under this startup loan for ladies scheme designed by the government of India, women can borrow amounts ranging between Rs. 50,000 to Rs. 50 lakh. This startup loan for ladies can also be availed for partnership businesses owned by women. These loans are divided into three categories:
- Shishu: Borrowed amount cannot exceed Rs. 50,000 for Shishu loans. These are meant for starting a new business.
- Kishor: Under this category, startup loans for women can range between Rs. 50,000 and Rs. 5 lakh. These loans can be used for aiding a well-established business.
- Tarun: These loans range between Rs. Five and Rs. 10 lakh and can be used for business expansion.
Additional Read:- 5 Types of Business Loans to Empower Women Entrepreneurs
2. Mahila Udyam Nidhi Scheme
This startup loan for women covers the establishment, expansion, hiring of employees, or purchase of machinery for small and medium-sized enterprises. This scheme has an upper limit of Rs. 10 lakh and has to be repaid within ten years. The moratorium period for the scheme is five years.
3. Udyogini Scheme
Business loans for women under the Udyogini Scheme have an upper limit of Rs. 1 lakh. These loans for women are available to those between 18 and 45 years of age. The annual income of the borrower’s family should be under Rs. 45,000. However, if the borrower is widowed, destitute, or disabled, this limit does not apply. One of the main benefits of this women entrepreneur loan scheme is that the government offers subsidies on 30% (up to Rs. 10,000) of the loan amount to SC/ST women and 20% (up to Rs. 7500) to those falling in the general category.
Women looking to become financially independent can take advantage of the schemes mentioned above. For promoting women empowerment, loans for small and medium-sized enterprises are also granted by Tata Capital. Tata Capital business loans start at a 19% interest rate and come with flexible repayment tenures. We also offer an online mode of application, require minimal documentation, and facilitate quick loan approval and disbursement.
Additional Read:- Top 4 Investment Tips for Women to Start Their Financial Journey
To learn more about our business loans for women, visit our website or get in touch with our representatives.