Funding options for women entrepreneurs: Public Schemes

public schemes for women entrepreneurs

From operating a household to successfully running a business, women can do it all. Today, women make up 432M of India’s employed workforce and there are 50K women-owned startups operational in the country.  Women run successful businesses in rural and urban India, and in a survey by Google and Bain & Company, more than 45% of Indian women in rural areas are driven to start a business in their specific niche.

In 2021 the world witnessed major women-owned Indian startups turn into unicorns – Nykaa, Byju’s, Mobikwik & Thrillophilia.

13.5-15.7M women-owned businesses provide direct employment to 22-27 million people. According to BCG, women-owned startups generate 10% more cumulative revenue over a five-year period.

Of course, owning your own business comes with its own set of challenges and one of the most common challenges faced by all businesses is access to finance. Entrepreneurs need funding to be able to attract and retain clients and talent, keep their daily expenses covered, and grow. So, fundraising is important for the growth of any business, and the advancement and transformation in the financial markets have made raising funds a lot easier now than in the past. Women entrepreneurs today have many sources and options to acquire funds – you can approach angel investors, crowdfunding support, or make use of peer-to-peer lending to get funds on your own terms.

Over the past two years, the Government of India has also introduced various schemes to encourage women’s participation in business and make access to funding easier for them. The 2021-2022 Union Budget also saw an increase in allotment for Women and Child Development by 14%.

Here are some recent public development schemes that women entrepreneurs can make use of.

Mudra Yojna Scheme:

Under this scheme, women can avail loans of up to R.s 10L. This scheme offers loans that start at 7.30% p.a. and the loan repayment period ranges from 1 year and 7 years. The loan plan is primarily based on business type, level of expansion, & the purpose of the loan. Once the loan is approved, a Mudra card, similar to a credit card, is issued with a withdrawal limit of 10% of the loan. 

Discover more about the Mudra Yojna Scheme here.

Orient Mahila Vikas Yojana Scheme:

This scheme is for women entrepreneurs who hold 51% capital share separately or collectively. With a loan limit is Rs. 25 L, and a repayment period of up to 7 years, this scheme gives concessional interest rates of up to 2% without any collateral.

Pradhan Mantri Rozgar Yojana:

This is one of the best financial schemes for women entrepreneurs. Initially introduced to help MSMEs get institutional credit of up to Rs. 10 L, most of its beneficiaries so far have been women entrepreneurs. This scheme covers both rural & urban areas and applies to all types of ventures, and the age limit to avail of this loan is 35 years.

Learn more about the Pradhan Mantri Rozgar Yojana here.

Udyogini Scheme:

Available to women whose yearly income is less than Rs. 1.5L, it provides loans of up to Rs. 3Lfor women without capital looking to start their own business ventures.

Women Entrepreneurship Platform (WEP)

WEP is the NITI Aayog’s flagship platform to promote women’s entrepreneurship in India. The platform hosts various workshops and educational events to motivate women to start their own businesses.

Find out how you can be a part of WEP.

Indian women entrepreneurs have achieved and set great benchmarks in the business world over the years, and businesspeople domestically and internationally are becoming aware of the impact these women-owned businesses are making. People in the business world and in the country are becoming more aware of the impact of women-owned businesses. An estimate shows that 30M women-owned businesses are expected to provide 150-170M jobs in India by 2030, and these schemes will help in significantly enhancing these estimates.

Once you’ve procured your business funding, ensure you run your business in an organized and informed manner, so that you can see it grow in a fast and stable manner. Here are some of our top tips for women entrepreneurs who want to succeed in 2022.  

If the public schemes for women entrepreneurs mentioned above do not meet your financial requirements, our team at CreditEnable can help you find the right business funding from one of our bank or NBFC partners! We partner with more than 25 of the leading lenders in India, who offer 100+ customized SME loan products, so we are sure we will find you the right funding option for your business needs!

Start your application today.

Business Loans. Enabled Simply.