With the rapidly changing and developing time and more acceptance of women working and becoming independent, the mindset of people seems to be changing in the present. Not only are people now accepting women as working in distinct fields and professions, but they are also welcoming and praising women entrepreneurs more.
In addition to this, the growing involvement of women as women entrepreneurs has led to making big changes in the definition of business. Moreover, the enterprises owned by women entrepreneurs are also contributing to the growth of the economy of the country.
Furthermore, the business enterprises that are owned by women entrepreneurs are playing a notable role in society and are also inspiring other people by initiating good employment opportunities for people.
Intending to bring notable changes in promoting stable growth in the country, it is important for us to empower women entrepreneurs. Therefore, today in this blog, we are sharing a few extremely popular small-scale loans for promoting women entrepreneurs and supporting them to forge ahead hassle-free.
Idea behind Promoting Business Loan for Women Entrepreneurs
Though the concept of Entrepreneurship ventures is not new amongst us, women entrepreneurs are treated as a recognizable minority in our country.
In addition to this, indenting to make these loans look more inviting to the women entrepreneurs, these loans are having the following interesting features attached to them: –
- Loan repayment tenure up to 10 years.
- Reduced interest rates.
- No third-party guarantee or collateral necessary in most cases.
- Low to zero processing fees.
Hence, to stimulate further growth in different business professions led by women entrepreneurs, prime financial institutions (public and private sector banks) have introduced several loan schemes to provide service to this evolving segment.
Let us now know and learn about the loans that are introduced to promote the startups and businesses run by the women entrepreneurs.
Cent Kalyani (Central Bank of India) – MSME Loan Interest Rate is from 7.35% Onwards
- Central Bank of India offers startup and business loans for women entrepreneurs who are willing to set up and their own business or who are planning to invest more in their existing business entity.
- Additionally, the females who are involved in cottage industries and rural areas, working in farming sectors, government firms, retail sectors, entrepreneurs, or involved in MSMEs, are eligible to avail of this loan.
- The only aim of granting this loan to women entrepreneurs is to focus on meeting the daily needs of the women entrepreneurs.
- These basic necessities include- securing the location for business setup, machinery and equipment, raw materials, costing and pricing, marketing and sales, and other related expenses.
- Moreover, there are no additional charges imposed on the amount of the loan, and the maximum limit to avail of the loan under this scheme is up to ₹100 lakh.
Stree Shakti Package from SBI – The Interest Rate is from 11.20% Onwards
- The Stree Shakti Tractor Loan or Stree Shakti Package is a business loan which is offered by the State Bank of India.
- This is a loan that is offered to the women entrepreneurs who own their business, for which no security is required.
- In addition to this, the loan is offered at keen and motivated interest rates with allowing 50% for the accessories.
Listed below are a few interesting features of this loan scheme: –
- Interest Rate- From 11.20% onwards (on yearly basis).
- Repayment Tenure- It is maximum up to 36 months which includes 1 month of moratorium period.
- Mortgage Free- No collateral is required under this.
Shringaar and Annapurna from Bhartiya Mahila Bank
- The Bhartiya Mahila Bank grants women entrepreneurs an extensive range loans to help them set up brand-new or expand the horizon of their existing businesses.
- Two of the more popular options in this category include Shringaar and Annapurna.
- The Shringaar loan targets women interested in setting up beauty parlors and the Annapurna loan scheme renders financial support to women interested in setting up a food catering business concerning selling lunch packs.
Here are these two loans explained in brief: –
BMB Shringaar- Loan granted for setting up a beauty parlor, spa, or a saloon.
Its Features: –
- The age of the interested & enthusiastic applicant must be minimum 20 years and maximum 60 years.
- In addition to this, there is a tie up with Lakme, Naturals, and Cavinkare.
- Under this scheme, the collateral free loan is to be covered under the CGTMSE scheme
- Its repayment tenure is maximum of 7 years.
BMB Annapurna Loan- Loan granted for setting up a Food Catering Business.
Given below are its features: –
- The applicant age must be minimum 18 years and maximum 60 years.
- Repayment tenure up to 3 years.
- The collateral free loan will be covered under the CGTMSE.
- The repayment tenure is maximum of 3 years.
Synd Mahila Shakti from Canara Bank
- The Syndicate Bank’s Synd Mahila Shakthi loan targets both the budding entrepreneurs as well as the currently working women entrepreneurs.
- This scheme is available as either as a cash credit (targeting to meet the financial requirements of both the new and the existing women entrepreneurs) or as a term loan scheme valid for up to 10 years.
- Additionally, any business that is seeking to avail loan from the Synd Mahila Shakti from Canara Bank, is required to have one or more women.
- Besides, these women entrepreneurs are required to own a minimum of 50% of the financial holding in their business.
Shakti Scheme from Bank of Baroda
The Shakti Scheme from Bank of Baroda aids the women entrepreneurs actively in extensive range of variant sectors.
These sectors include the following: –
- Moreover, the maximum ceiling that is offered on the loans, formally differs on the basis of the domain in which the business entity operates.
- Except for this, the loan is offered without imposing any rebate 0.5% and processing fee only on loans up to a limit of 5 lakh.
Critical Analysis of the 5 loans for Women Entrepreneurs
Since we have learned much about the 5 business loan options available for women entrepreneurs, let us now also learn a little about the differences that these 5 loans have.
Hence, the below-given table explains the differences in these loans.
|
Comparison Criteria |
Cent Kalyani (Central Bank of India) |
Stree Shakti Package (SBI) |
Shringaar / Annapurna (Bhartiya Mahila Bank) |
Synd Mahila Shakthi (Canara Bank) |
Shakti Scheme (Bank of Baroda) |
|
Eligibility Criteria |
Only females over 18 years of age with no income ceiling for assistance |
The women entrepreneurs are required to own a minimum of 50% in the enterprise |
The age of the applicant age should be between 20 to 60 years for Shringaar.
In addition to this, the age of the applicant for Annapurna should be between 18 to 60 years. |
The loans are being granted to the women entrepreneurs who hold the right knowledge or experience of the business activities |
Women entrepreneurs who hold with 50% of ownership in their business enterprise |
|
Max. Loan Amount |
Up to ₹100 lakh |
Up to ₹50 lakh |
Up to ₹ 10 Lakh for Shringaar.
Besides loan amount up to ₹50,000 for Annapurna |
Up to ₹ 5 Crore
|
₹ 50,000 under micro credit schemes
Up to ₹ 20 Lakh for retail trade, education and housing.
|
|
Loan Term
|
The duration of loan repayment is between 1-7 years |
The duration varies based on the amount of the loan and on the other related factors |
The duration under Shringaar is of 7 years and it is of 3 years under Annapurna |
The duration is of 10 years which includes the moratorium period also |
Under this loan scheme, the loan repayment duration varies on the basis of the loan amount and the other factors |
|
Interest Rates |
7.40% onwards |
0.50% below Base rate if loan amount exceeds Rs. 2 Lakh, otherwise as per base rate of bank |
As per bank’s criteria |
0.25% below base rate for loans over Rs 10 Lakh, lesser amounts at base rate |
0.25% below base rates for women applicants who are majority stake holders in the company
|
|
Processing Fee
|
Not closed yet |
The processing fee varies on the basis of the loan amount |
The fee varies based on the loan amount |
Not closed yet |
Not closed yet |
|
Additional Features |
No third-party or collateral Guarantee is required.
Hypothecation of all assets as well as stocks are formulated from the bank’s fund which is demanded as a security
|
No security needed for loans of up to the limit of ₹5 lakh in the tiny sector
No interest concession for further advances granted to retail traders
|
Shringaar features join hands with Naturals, Cavinkare and Lakme Ltd.
Both Shringaar & Annapurna is collateral free & encompassed under CGTMSE
|
Free credit card
No Third-party guarantee for loans under ambit of CGMSE
|
Micro credit & retail stores are also eligible along with enterprises functioning in the agriculture and allied sector
|
Additional Information
The charges, interest rates, and fees that are mentioned in the above-given table are subject to change. It will also depend on the sole discretion of RBI[1] and the bank. Additionally, the service tax and the GST shall also be levied on the charges that are mentioned.
Features of the Small Business Loans
Mentioned below are the features of the small business loans that are offered to the women entrepreneurs.
These features are as follows: –
- The Interest Rate is discounted for the female borrowers.
- It varies from one bank to another.
- There is no minimum bar for the loan amount. Besides, the maximum loan amount is up to ₹75 lakhs.
- The repayment tenure is from 12 months – 5 years.
- Also, no collateral is required.
Furthermore, these loans are granted in the following mediums:-
1- Working Capital Loan.
2- Secured and Unsecured loan.
3- Term Loan (Short or Long term).
Business Loans for Women Entrepreneurs
Here we will learn about the interest rate and the fees.
The concessional Interest Rates for the female borrowers, the service charges, or the fees vary from one lender to another lender.
Eligibility Criteria
The below given points specify the eligibility criteria: –
- The age of the applicant must be b/w 18 to 60 years.
- These loans can be only be availed by Indian citizens, and they should not have any criminal background also.
- Only these applicants are eligible for applying who have no loan defaults.
- The Partnership Firms, Sole Proprietorship, MSMEs, Limited Liability Partnerships (LLPs) engaged in services sectors, manufacturing, and trading sectors are also eligible to apply.
- Moreover, the annual turnover will be decided by the bank only.
- Women entrepreneurs whose business has maintained to remain in profit for one year are also eligible to apply.
Requisite Documents for Loan Application
Intending to apply for any of the loan mentioned in this blog, the women entrepreneurs are required to submit the following: –
- Last 1-year ITR.
- Duly filled application form.
- Business PAN Card.
- Self-written Business Plan.
- Address Proof such as utility bills, voter’s ID card, passport, Aadhaar card, etc.
- Bank statement of last 6 months.
- Business Address Proof.
- 2 latest passport-size photographs of the loan applicant and co-applicant, if asked for.
Additional Business Loan Schemes for Women Entrepreneurs
Mahila Udyam Nidhi Scheme from PNB
This scheme is offered to women entrepreneurs with the motive of providing them with financial assistance to help them in setting up their business projects without facing any challenges.
KBL Mahila Udyog Loan from Karnataka Bank
- This loan is offered to intend to meet the funding requirements.
- Additionally, the maximum loan amount that is offered under this is up to ₹ ten lakhs, with the repayment tenure up to 120 months.
The Bottom Line
Empowering the women of society plays a crucial role in the development of the country. Furthermore, in the present time, women entrepreneurs are also making and earning their good positions in the world of business. Besides, this blog consists of information about 5-business loans for women entrepreneurs.
Aatmnirbhar Sena is a self-reliant organization that works for the welfare of the people and the country. Our volunteers work relentlessly to grant help and support to the people who aim to achieve some goals in their lives.
Moreover, Aatmnirbhar Sena never steps back from bestowing financial assistance to the budding entrepreneurs as well as the women entrepreneurs as we believe in equality and promoting the women of our country.
