Government Loan Schemes for Women Entrepreneurs in India

Over the last few decades, female entrepreneurship in India has grown significantly. In fact, according to some reports, there are more than 15.7 million women-owned enterprises in the country. And they are expected to increase by up to 90% by 2030. Women are driving the start-up ecosystem and are one of the leading contributors to the GDP (Gross Domestic Product).

 

Despite their significant growth, numerous women entrepreneurs in India still face many challenges that limit their growth potential. One of the major challenges is a lack of funds. So, to help these women entrepreneurs grow and realise their full potential, the government of India has introduced several programs and loan schemes.

 

In this guide, we look at the top government schemes for women entrepreneurs.

 

Annapurna Scheme

 

The Annapurna Scheme is specifically designed to help women who own food and catering businesses and want to grow their enterprises. Under this scheme, women can avail a loan of up to Rs. 50,000 and meet their business expenses, such as setting up a food truck or buying equipment.

 

As a women entrepreneur, you can take advantage of this scheme, get the funds you need and kickstart your business.

 

Mudra Yojana

 

The Mudra Yojana is one of the best schemes for women entrepreneurs. It aims to provide entrepreneurship and financial support to micro and small business entities. It focuses especially on women entrepreneurs and aims to empower them to be independent and successful business owners.

 

Through this initiative, the Government of India offers a loan of up to Rs. 10 Lakh. The loan is unsecured, meaning you need not provide any collateral or security against the amount you borrow. Also, the eligibility for the loan is quite simple so that a maximum number of women can take advantage of it. The interest on the loan is also quite low, making it a lucrative funding option to start or expand your business.

 

Orient Mahila Vikas Yojana Scheme

 

Under the Orient Mahila Vikas Yojana Scheme, the government of India offers loan for women entrepreneurs in India. It is specifically designed for women who hold at least 51% of the share capital collectively or individually as a proprietary concern.

 

Under the scheme, a woman entrepreneur can get a loan of up to Rs. 25 Lakh without offering any collateral or security against the amount borrowed. The government of India provides up to 2% concession on the interest rates for the scheme's beneficiaries. In addition, you get the flexibility to choose the repayment period based on your repayment capacity, with the maximum tenure being 7 years.

 

It is an excellent initiative by the government that women entrepreneurs can take advantage of to expand their businesses.

 

Udyogini Scheme

 

The Udyogini Scheme is another popular government loan for women in India. It aims to empower women to be economically self-reliant and helps them in self-development. Under the scheme, the government provides loans to all aspiring women entrepreneurs at affordable interest rates compared to private sector banks and other financial institutions.

However, to get the loan under the scheme, you must meet certain requirements, including:

 

• The total annual income of your family must be less than Rs. 40,000
• The scheme especially encourages women to own a business in the trade and service sector.
• The maximum amount entrepreneurs can avail is Rs. 1 Lakh.

 

Stree Shakti Yojna

 

Under this scheme, women entrepreneurs can get a 0.05% concession on loans of more than Rs. 2 Lakh and are entitled to many other benefits.

 

This loan scheme is available for ambitious women aspiring to start their own business ventures. One key prerequisite for this scheme is enrolment in the EDP or Entrepreneurship Development Program.

 

Pradhan Mantri Rozgar Yojana

 

The PMRY, or Pradhan Mantri Rozgar Yojana, is one of the best government schemes for women entrepreneurs in India. It aims to uplift women both socially and financially. This government scheme mainly focuses on creating skill-based self-employment opportunities for aspiring women entrepreneurs.

 

The scheme is available for women in both rural and urban areas. Over the years, it has undergone several amendments regarding costs and subsidy limits offered to women. Under this initiative, women entrepreneurs can get a loan subsidy of up to 15% of the project cost. The scheme primarily aims to help women-owned businesses in the trade and services sector.

 

Dena Shakti Scheme

 

This government loan for women is specially meant for women-owned businesses in retail, manufacturing, agriculture, and micro-credit organisations. According to the RBI (Reserve Bank of India) mandate, the maximum loan amount you can avail under this scheme is Rs. 20 Lakh. However, the loan amount will depend on the type of business.

 

Mahila Coir Yojana

 

The MCY, or Mahila Coir Yojana, is a special initiative by the Government of India that aims to empower women financially and make them self-reliant by giving them spinning equipment at a discounted rate and providing them with proper training to use the equipment. Under this scheme, women also get a subsidy of up to 75% of the equipment cost and the machine used for processing the coir.

 

This scheme offers a margin money subsidy of up to 25% of the project cost, which can be beneficial overall. This initiative is available only for rural women artisans aged over 18 years and who have completed the coir yarn spinning training program from any of the training institutes established and recognised by the Coir Board.

 

Stand-up India Scheme

 

The Stand-up India Scheme, a government of India initiative, is a powerful tool for empowering women and other marginalised communities by fostering entrepreneurship. The scheme's primary goal is to provide financial support to women entrepreneurs through bank loans, ensuring loans for women from both SC (Schedule Caste) and ST (Schedule Tribe) sectors, thereby helping them start their businesses.

 

In situations where a non-individual enterprise is applying for the loan under this scheme, it is mandated that either an SC or ST entrepreneur or a female entrepreneur holds at least 51% of the ownership in the business. Under this scheme, women entrepreneurs can get a loan anywhere between Rs. 10 Lakh to Rs. 1 Crore to fulfil their financial needs.

 

Final Word

 

Women in India are progressing rapidly in all spheres of life, including running a business venture successfully and profitably. Women can take advantage of the government loans for women and feel empowered to grow further in their business and achieve complete financial independence.

 

If you are a woman business owner running a small or medium-sized enterprise, in addition to government loan initiatives, you can also consider applying for a loan with Udyog Plus, a part of the Aditya Birla Finance Limited Group. And secure loans up to Rs. 2 Lakh without providing any documents.