Top 7 Government-Backed Instant Loan Schemes for Women
Money Matters January 22, 2025
Siddhi Sharma
Money Coach, Lxme } NISM Certified
In India, women now have access to a number of government-backed loan packages designed to financially empower them. These schemes provide benefits like lower interest rates, simplified processes, and customized alternatives for both business and personal needs. Let’s explore the top 7 government-backed instant loan schemes for women and how they can help.
1. Mudra Yojana for Women
The Pradhan Mantri Mudra Yojana (PMMY) supports women entrepreneurs by offering business loans for women up to ₹10 lakhs without collateral. It’s divided into three categories:
- Shishu: Loans up to ₹50,000 for startups.
- Kishor: Loans between ₹50,000 and ₹5 lakhs for growing businesses.
- Tarun: Loans between ₹5 lakhs and ₹10 lakhs for established businesses.
Interest rates are competitive, and repayment terms are flexible, making it an excellent option for women seeking a business loan for ladies from the government.
Also, check out how you can apply for a mudra loan.
2. Stand-Up India Scheme
Launched on April 5, 2016, the Stand-Up India Scheme aims to support women and SC/ST entrepreneurs in establishing new businesses.
It offers loans ranging from ₹10 lakhs to ₹1 crore for manufacturing, trading, and service-based businesses.
Key features include:
- Loans are provided for new (greenfield) projects.
- At least 51% of the enterprise’s stake must be held by a woman or SC/ST entrepreneur.
This scheme is ideal for seeking business loan for ladies from the government to establish or expand their ventures.
3. Annapurna Scheme
Designed for women in the food industry, this scheme provides loans to start or expand food catering businesses.
- Loan Amount: Up to ₹50,000, with a repayment tenure of up to 3 years.
- Purpose: To cover costs like utensils, equipment, and raw materials.
- Eligibility: Women entrepreneurs in the food catering sector.
- Features: After the loan is given, the borrower does not have to pay the EMI for the first month. The loan must be repaid within 36 months, and the interest rate is based on market rates and the bank’s policies.
Women entrepreneurs in the catering sector can greatly benefit from this scheme when looking for a personal loan for ladies from government.
4. Dena Shakti Scheme
This scheme offers financial support to women entrepreneurs in sectors such as agriculture, retail, education, and manufacturing.
- Loan Amount: Up to ₹20 lakhs.
- Purpose: To fund various business needs, including working capital.
- Eligibility: Women engaged in priority sectors like agriculture and retail.
- Features: A concession of 0.25% on the interest rate. Microcredit allows women entrepreneurs to obtain loans of up to ₹50,000.
This scheme makes business loans for women accessible and affordable for those in priority sectors.
5. Bharatiya Mahila Bank Business Loan
Bharatiya Mahila Bank (now merged with SBI) was established to support women entrepreneurs by providing loans for business growth.
Key Features:
- Loan Amount: Up to ₹20 crores for manufacturing enterprises.
- Collateral-Free Loans: Up to ₹1 crore under CGTMSE cover.
- Interest Rate: 10.15%* to 13.65%* per annum.
- Loan Tenure: Up to 7 years.
- Special Plans:
- Shringaar Plan: For self-employed women to start businesses, no collateral needed.
- Parvarish Scheme: Loans up to ₹1 crore for homemakers or entrepreneurs without collateral.
- Annapurna Scheme: For food entrepreneurs aged 18–60, no collateral required.
This scheme offers tailored support for women in manufacturing, retail, and service sectors, promoting economic empowerment and business expansion.
*Please note that the interest rate may vary and it depends on the sole discretion of the bank and RBI.
6. Udyogini Scheme
This scheme supports rural and underprivileged women in starting micro-enterprises.
Key Features:
- Loan Amount: Up to ₹3 lakh
- Purpose: For agricultural, retail, and small business activities.
- Eligibility: Women from rural areas with an annual family income below ₹1.5 lakhs.
- Features: Interest subsidies for loans under specific categories.
It’s one of the options for rural women seeking a personal loan for ladies from the government in India.
7. Mahila Udyam Nidhi Scheme
A joint initiative by the Punjab National Bank and SIDBI (Small Industries Development Bank of India), this scheme aims to help women establish micro and small enterprises.
- Loan Amount: Up to ₹10 lakh
- Purpose: To support small-scale industries and business expansion.
- Eligibility: Women entrepreneurs in SSI (Small Scale Industries).
- Features: Low interest rates and easy repayment terms of up to 10 years.
FAQs
Are there any interest subsidies for women under these schemes?
Are there any interest subsidies for women under these schemes?
Do these loans require collateral?
Most schemes, such as Mudra Yojana and Stand-Up India, do not require collateral, especially for smaller loan amounts.
Can housewives apply for these loan schemes?
Yes, schemes like the Dena Shakti Scheme are designed to support housewives and rural women in starting their businesses.
Are there specific schemes for women entrepreneurs in rural areas?
Yes, schemes like Udyogini and Annapurna cater to rural women entrepreneurs.
Further Read,
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