Know More about the Different Types of Business Loans for Women in 2023

With the passing days, India has witnessed a marked increase in women entrepreneurs. Due to this reason, the government, as well as several private sector banks, have introduced different schemes to provide business loans for women. This serves as a strong financial backup, encouraging women empowerment. Keep reading to learn about different credit options available for business women in 2023.

Know More about the Different Types of Business Loans for Women in 2023

Various Business Loans for Women in 2023

The different types of business loans for women available in 2023 in India are:

1. Mudra Loan for Women

The government launched this scheme to support small-scale start-ups by women, such as tuition centres, beauty parlours, etc. To get this loan, you will not have to collateralise any property. There are several categories under this scheme according to which you can apply for credit. These are as follows:

  • Tarun Loan: If you have a well-established venture, you can get a loan of up to Rs. 10 Lakhs for business expansion.
  • Kishore Loan: Credit between Rs. 50,000 and Rs. 5 Lakhs is available for entrepreneurs with an established business for further expansion.
  • Shishu Loan: If your business is still in its nascent stage, you can get a loan of up to Rs. 50,000 as working capital.

2. Stree Shakti Yojana

To qualify for credit under this scheme, you will have to hold the majority of shares of a venture. Another criterion for business loan eligibility under this scheme is that you will have to enrol under the Entrepreneurship Development Programme (EDP). Once you qualify for it, you can get a concession of 0.05% on business credits above Rs. 2 Lakhs.

3. Bhartiya Mahila Bank Business Loan

You can apply for credit up to Rs. 2 Crores under this type of business loan. Additionally, there are different divisions under this scheme that you must be aware of to select the right one. These are as follows:

  • Annapurna: Entrepreneurs between the age of 18 and 60 and dealing in the food business can apply for this credit type to gather working capital for their ventures.
  • Parvarish: Self-employed women or homemakers planning to open daycare centres can qualify to get Rs. 1 Crore under this scheme.
  • Shringaar: This is ideal for homemakers planning to set up their venture starting a beauty parlour, saloon, spa, or other similar businesses.  

4. Annapurna Scheme

Under this scheme, you can qualify for a business loan of up to Rs. 50,000. However, it is essential that your business belong to the food and catering sector to qualify for this type of credit. 

5. Dena Shakti Scheme

Women entrepreneurs dealing in agriculture, micro-credit, manufacturing, and retail stores can get a credit of up to Rs. 20 Lakhs. In addition, they are eligible for a rebate of 0.25% on the interest rate of their credit. Also, they can apply for microcredit up to Rs. 50,000. 

6. Mahila Udyam Nidhi Yojana

This scheme was launched by the Small Industries Development Bank of India (SIDBI) and Punjab National Bank (PNB) to provide financial support to women entrepreneurs. According to this, you can get a credit of up to Rs. 10 Lakhs for expanding your venture and repay it at your ease within ten years. 

7. Cent Kalyani Scheme

Both new and existing businesswomen dealing with small-scale enterprises, such as farming, agriculture, and cottage industries, are eligible for this plan. The most attractive feature of this scheme is that the interest rate is at par with the market, there is no requirement for collateral or guarantor, and the maximum tenure for the repayment of these types of credit is seven years. 

8. Orient Mahila Vikas Yojana Scheme

The business loan eligibility for this scheme is that you will have to own at least 51% share of the enterprise. Although you will need collateral for this plan, you can get a loan amount between Rs. 10 Lakhs and Rs. 25 Lakhs. Additionally, you can get up to a 2% concession on interest rate and about seven years for repayment. 

9. Udyogini Scheme

The government launched this scheme to provide financial support to women from rural areas. It mainly focuses on helping women with no educational background to set up their businesses and become financially independent. 

10. Synd Mahila Shakti Scheme

The Syndicate bank launched this scheme intending to provide financial backup to women entrepreneurs. You can get up to Rs. 5 Crores under this scheme to expand your business. Additionally, the interest rate is 10.25% upto Rs. 10 Lakhs and has a rebate of 0.25% on it for loans above Rs. 10 Lakhs. 

11. Pradhan Mantri Rozgar Yojana

Under this scheme, you can get a loan of up to Rs. 1 Lakh for setting up your own business. This provides a strong financial backup to the youth in business segments such as trade, manufacturing and services. Additionally, you can get up to 7 years for credit repayment.

These business loans for women are highly beneficial to those looking forward to expanding their ventures or increasing working capital. However, it is essential to check the eligibility criteria for each before applying.

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