Today, with the right amount of dedication, attitude, ambition, and funds every business idea can turn into a reality. You need to have a business plan, sufficient funds to put the plan into action, and enough working capital to keep the business running once it is operational. Finances play a significant role in every business and as a woman, there are a number of funding opportunities for women entrepreneurs that you can benefit from when starting out.
Different banks and non-banking private organizations offer many schemes and loan products that specifically enable women entrepreneurs to access funds. But family & friends still remain the primary source of funding for many women entrepreneurs just starting out. And while many women entrepreneurs are lucky enough to have friends and family who can financially help them out, countless other entrepreneurs need to find alternative sources of funding to sustain their businesses.
Below are some funding opportunities available to women entrepreneurs that are offered by public banks.
What funding schemes for women entrepreneurs does the Indian government offer?
In India, only 7 out of 100 entrepreneurs are women, so it is necessary to develop an environment where this gap is minimized, and women entrepreneurs are equipped with the rights tools needed to succeed. The Indian government has come up with various resources and schemes such as Pradhan Mantri Mudra Yojana, Women Entrepreneurship Platform (By NITI Aayog), and Mahila Udyam Nidhi Scheme (By SIDMI), to close this gap and promote the growth of women entrepreneurs in the country.
Women entrepreneurship contributes to women empowerment and economic growth, and India can grow in double digits if more women participate in the product line of the economy, according to Annette Dixon, South Asia Vice President, World Bank.
Today, we are more aware of the importance of women entrepreneurs, and people are witnessing the influence of women-owned businesses on various economic factors of the country.
What funding options do public banks offer women entrepreneurs?
Here are some business funding options offered by different public banks to women entrepreneurs that you can tap into:
1. Cent Kalyani Scheme
This scheme, offered by the Central Bank of India, focuses on offering loans to women who want to start their business or expand their existing business in retail, trade, manufacturing, or agriculture. It is a collateral-free loan with zero processing fee. This scheme offers loans up to Rs. 1 Cr to women entrepreneurs with a maximum loan repayment period of 7 years.
2. Bhartiya Manila Bank Loan Scheme
Bhartiya Mahila Bank provides two different loan schemes to women entrepreneurs-the Shringaar Loan and the Annapurna Loan. This scheme offers loans of up to Rs. 20 Cr with a repayment period of 3 years.
- The Shringaar Loan provides financial support to women entrepreneurs working in the beauty industry.
- The Annapurna Loan supports women entrepreneurs who own businesses in the catering industry.
3. Mahila Udyam Nidhi Scheme
This scheme offered by Punjab National Bank is to promote and support SMEs run by women entrepreneurs. Women entrepreneurs from the beauty and local travel industry can obtain a loan of up to 10 L with a repayment period of 10 years.
4. Stree Shakti Package
This scheme by the State Bank of India focuses on women entrepreneurs enrolled in their state’s Entrepreneurship Development Programme. Women entrepreneurs with at least 50 % ownership in the business, can obtain a loan of up to Rs. 50 L under this scheme.
5. Dena Shakti Scheme
This scheme by Dena Bank provides loans of up to Rs. 20 L for women entrepreneurs in manufacturing, retail, agriculture, or education industry. A concession 0.25% is applied to the interest rate for women under this scheme.
6. Synd Mahila Shakti Scheme
This scheme by Syndicate Bank provides financial support to women entrepreneurs who are looking to expand their business or to start a new business. Under this scheme, women entrepreneurs can avail of loans of up to Rs. 5 Cr with a repayment period of 7 to 10 years.
7. Union Nari Shakti
This scheme by the Union Bank of India provides loans to women entrepreneurs who hold at least a 51% stake in the business. The bank provides loans from Rs. 2 L to Rs. 2 Cr with a repayment period of 7 years.
If you are looking for a business loan instead, our team at CreditEnable can help you find the right business funding from one of our banks or NBFC partners. We partner with more than 25 leading lenders in India who offer 100+ customized SME loan products. Find the right hassle-free business finance for all your business needs with CreditEnable.
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