5 Best Business Loan Schemes for Women Entrepreneurs

Women today are reaching the moon to leading Fortune 500 companies, and women are breaking barriers and making their mark in every field. Entrepreneurship is another domain where women are excelling, bringing innovation and passion to the forefront. One of the examples of women-led businesses is LXME which is built by women for women.

Starting or expanding a business often requires substantial financial assistance. As startups are booming, startup business loan for women’s in India is required.

In India, loans for women to start business has many schemes which are designed specifically for women, making the process smoother and more accessible.

Let’s explore schemes of loans for women’s to start business in India

 1. Mudra Yojana Scheme for Women

The Pradhan Mantri Mudra Yojana (PMMY) offers three loan products under the Mudra scheme – Shishu, Kishor, and Tarun. These loans cater to the varying financial needs of micro and small enterprises, providing crucial support to women entrepreneurs.

Key Features:

– Shishu: Loans up to ₹50,000 for startups.

– Kishor: Loans from ₹50,000 to ₹5 lakhs for established businesses.

– Tarun: Loans from ₹5 lakhs to ₹10 lakhs for business expansion.

Eligibility:

– Age: 24 years- 80 years

– Nationality: Indian

– Women entrepreneurs running small or micro-enterprises.

– Should not be a defaulter to any bank or financial institution and should have a satisfactory credit track record.

2. Udyogini Scheme:

The Udyogini Scheme is implemented by the Women Development Corporation with the purpose of providing subsidized loans for women’s to start business. It promotes women entrepreneurs by providing them with financial assistance for doing business. The scheme mainly attempts to target underprivileged women and women from rural areas.

Key Features:

• loans up to Rs. 3 Lakhs under this scheme.
• Provides a 30% subsidy on loans under this scheme.
• Loans can be availed for engaging in business under 88 industries. Some examples are Canteen & Catering, Library, Papad making, Security service etc.
• Interest-free loans if in the agricultural sector

Eligibility:

– This scheme is only for women entrepreneurs between the ages of 18-55.

– Should have a good credit history and should not have defaulted on any previous loans

– The family income of the woman should be less than Rs. 1.5 lakhs (this is not applicable in special situations such as in the case of disabled women, widowed women, etc.)

3. Stree Shakti Package for Women Entrepreneurs

The Stree Shakti Package is a unique initiative by the State Bank of India (SBI) aimed at empowering women entrepreneurs. This scheme provides financial assistance at concessional interest rates to businesses where women have a majority ownership.

Key Features:

– Interest rate concession of 0.5% for loans exceeding ₹2 lakhs.

– Special training programs for women entrepreneurs.

Eligibility:

– Women entrepreneurs owning at least 51% of the enterprise.

– The business should be engaged in manufacturing, trading, or services.

 4. Annapurna Scheme

The Annapurna Scheme, offered by Bharatiya Mahila Bank (now merged with SBI), is specifically for women entrepreneurs in the food catering business. This scheme provides financial support to purchase kitchen equipment and establish catering services.

Key Features:

– Loans up to ₹50,000.

– EMI to be repaid in 36 months

– 1-month EMI-free period.

Eligibility:

– Age: 18-60 Years

– Women entrepreneurs in the food catering business.

– Must provide a business plan and have relevant experience.

 5. Mahila Udyam Nidhi Scheme

The Mahila Udyam Nidhi Scheme by Punjab National Bank (PNB) aims to support women entrepreneurs in setting up new projects in small-scale industries. This scheme provides long-term financial assistance to help women establish and grow their businesses.

Key Features:

– Loans up to ₹10 lakhs.

– Flexible repayment tenure of up to 10 years.

– Interest rate as per the bank’s guidelines.

Eligibility:

– Women entrepreneurs in the small-scale industry sector.

– Must provide a detailed business plan.

LXME also provides a simple and effective solution to get a personal loan for fulfilling your dream of setting your dream business. Here’s a rundown of the features that set LXME apart and why it’s a great instant personal loan app:

1. Instant approval and disbursement.

2. Flexible Tenure

3. Competitive processing fees

4. No collateral required

5. Loans Up to ₹5 Lakh

These business loan schemes are excellent opportunities for women entrepreneurs to access financial support and realize their entrepreneurial dreams. By leveraging these schemes, women can start, expand, and sustain their businesses with ease.

However, along with building a business, building personal financial security is also very important. This will enable you to fulfill all your personal goals like buying a house, children’s education, building a fund for retirement, etc. Ideally, you should plan and invest in for these goals in order to avoid any financial stress. You can plan & invest for your goals with LXME – an app for investment for women as we offer goals and time-based mutual fund portfolios that are well-researched, diversified, and curated by experts. So, start investing and fulfill all your goals.

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