state bank of IndiaAccording to data collected by Startup India, only 13.76% of the total number of entrepreneurs in India are women. This accounts for a mere 8 million women as compared to over 50 million male entrepreneurs. Thus, to boost female entrepreneurship, Indian Government launched several schemes under the Ministry of Micro, Small and Medium Enterprises in recent years.
For instance, the Pradhan Mantri Mudra Loan is one such advance that can help women to efficiently avail the capital they require to expand or start businesses.
Following is a list of eleven MSME schemes that can provide funding for women entrepreneurs and help them know about financing business. Before you avail any business opportunity, you must work on yourself to build business qualities.
1. Pradhan Mantri Mudra Yojana
MUDRA or Micro Units Development and Refinance Agency Ltd. set up to provide financing up to 10 lac to micro and small enterprise for their income-generating activities.
The loan that individuals can avail under the MUDRA scheme from various financial institutions in India is known as the Pradhan Mantri Mudra loan. You can avail one of the three products depending on your business’ funding needs and stage of development.
- Shishu plan where you can avail a credit of up to Rs. 50,000
- Kishore plan covering loans of Rs. 50,000 up to Rs. 5 Lakh.
- Tarun plan providing loans of Rs. 5 Lakh to Rs. 10 Lakh.
2. Mahila Udyam Nidhi
This scheme for start-up business loan helps women entrepreneurs to set up their businesses and meet the equity gap. This scheme can be availed by women whose total project cost does not exceed Rs. 10 Lakh. If you meet all the eligibility criteria required, you can avail a loan of up to 2.5% of the total project cost. Individuals can also avail the loan for business expansion, up-gradation of technology, and diversification.
3. TREAD scheme
Under the TREAD scheme women, entrepreneurs can avail a 30% Government grant for their projects and avail the rest 70% as a loan from lending institutions. This scheme is targeted to empower women without easy access to funds to meet their capital requirements. Additionally, it also helps economically backward, illiterate or semi-illiterate women to provide assets demanded by financial institutions as collateral.
4. Stree Shakti Yojana for Women Entrepreneurs
Under this scheme, women can avail a concession of 0.05% on interest rates for loan amounts above Rs. 2 Lakh. However, to avail of this scheme, individuals need to be enrolled in their respective state agency’s Entrepreneurship Development Programme.
5. Annapurna scheme
Under MSME loan for new business, women looking to start their business in the food industry can avail up to Rs. 50,000. The advance can be used to start a catering business by investing in working capital requirements like gas connection, cutlery, utensils, refrigerator, water filter, etc. however, to avail the loan individuals have to put up business assets as collateral.
6. Dena Shakti Scheme
This is one of the best sources of financing women. Under this scheme, women can avail loans from various financial institutions in the country to invest in shares of different sectors like agriculture, small enterprises, retail, education, housing, etc. The loan amount individuals can avail under the scheme is up to Rs. 50,000 for micro-credit schemes and Rs. 20 Lakh under other sectors at 0.25% interest rate subsidy.
7. Bhartiya Mahila Business Bank Loan
Under this scheme women can avail a loan of up to Rs. 20 Crore for businesses in the manufacturing sector. The interest rate for the loan varies from 10.15% to 13.65% per annum, payable within a tenor of up to 7 years.
8. Udyogini scheme
Under this scheme, women between the ages of 18-45 years and belonging to an economically challenged household can avail a business loan. Individuals can borrow up to Rs. 1 Lakh with low-interest rates. However, to avail the scheme, they must belong to households whose annual income is below Rs. 45,000.
9. Cent Kalyani Scheme
Women involved in the management of MSME can avail a loan of up to Rs. 1 Crore under this scheme. Also, like the Pradhan Mantri Mudra loan, there is no need for a guarantor or any collateral to apply for this loan. This loan can help women boost their finances.
These are the nine schemes under MSME that women can avail to start their businesses or further the existing ones. However, it is crucial to read through the benefits, eligibility and details of each scheme before choosing to apply for one.
10. Stree Shakti Package
The schemes Stree Shakti Package was launched by state bank of India to support women entrepreneurs. As a qualification area, one can avail the fund under this scheme, only when she has more than 50% of its share capital.
11. Maan Deshi Foundation
The foundation “Maan Deshi” is also popular as name as Women’s Bank. The foundation provides financial support for women entrepreneurs so that their business could be expanded. The foundation was launched specifically for rural women promoting digital banking. The foundation also offers insurance schemes and doorstep banking services representing the concerns of rural women at national as well as international level.