Government Loan Schemes for Women Entrepreneurs


24 Feb 2020 | 5 min read

The Startup Ecosystem of India has pulled off several women from their high-profile jobs to explore entrepreneurship. 

A lot of women are proving their skills and talent by embracing entrepreneurship leaving their Corporate careers behind. The boom in the Startup Ecosystem has been seen in all the major sectors from IT, Manufacturing, Entertainment, Automobile etc. A lot of entrepreneurs also tapped into various less explored sectors, successfully taking it to new heights.

All this was possible due to the support from the Government through various schemes and policies, and backing of financial institutions in offering loans at affordable interest rates. Below we have listed down the list of schemes by Government to support Women Entrepreneurs.

Stree Shakti Scheme

It is an SBI run scheme to support entrepreneurship among women by providing certain concessions on loans.

Features of the scheme

  • Women who have majority stake in a small business, having enrolled in the Entrepreneurship Development Programme are eligible for this scheme. 
  • According to this scheme, women are allowed to avail loans at a concession on interest rate of 0.05% exceeding Rs 2 lakh. 
  • Till loans of Rs 5 lakhs, no security is required for tiny sector units.
  • The maximum loan available is up to Rs 20 lakh

Annapurna Scheme

The State Bank of Mysore has designed this scheme for women entrepreneurs who are setting up food catering industry selling packed meals, snacks etc.

Features of the scheme  

  • Women entrepreneurs can avail this benefit for buying utensils and other kitchen tools and equipment
  • The maximum loan that can be availed under this scheme is Rs 50,000.
  • The loan repayment is to be done over a period of 3 years.
  • For the first month, there is relaxation in paying the instalment.
  • A guarantor or collateral is required to avail the loan

Orient Mahila Vikas Yojana Scheme

This scheme was launched by Oriental Bank of Commerce for women holding a 51 per cent share capital individuality or jointly in a proprietary concern. 

Features of the scheme 

  • No collateral is required for availing the loan
  • Loan available between Rs 10 lakh to Rs 25 lakh for small scale industries
  • Interest rate concession of up to 2 per cent
  • Loan repayment period available up to 7 years

Mudra Yojana

Launched by Government of India, this scheme is offered by nationalised banks under the Pradhan Mantri Mudra Yojana. It does not require any collateral. The maximum loan available in this scheme is of Rs 10 lakhs.

The loan can be availed under three schemes:

Shishu – For a business that is in the initial stage, a loan can be availed up to Rs 50,000.

Kishore – Enterprises that are well established, a loan can be availed between Rs 50,000 and Rs 5 lakh

Tarun – For businesses in need of expansion, a loan of Rs 10 lakh can be availed.

A Mudra Card is given to the borrower functioning in the same way as a credit card, limiting the funds to 10% of the loan amount.

Also Read

| MUDRA Loan Eligibility Criteria


Dena Shakti Scheme

This scheme is offered by Dena Bank to women entrepreneurs in the fields of agriculture, manufacturing, micro-credit, retail stores or small enterprises. 

Features of the scheme 

  • A loan of up to Rs 20 lakh is available.
  • There is a concession of 0.25% on rate of interest.
  • A loan amount if Rs 50,000 is offered under the microcredit category.

Udyogini Scheme

This scheme is offered by Punjab and Sind Bank to women entrepreneurs associated with agriculture, retail and small businesses. The prime motive of launching this scheme is to make women set free from the manipulative tactics of money lenders. Additionally, skill development training is also offered to let women be self-reliant and be financially independent.

Features of the scheme 

  • For women who are widowed, disabled or destitute, the household income limit is waived off.
  • Applicant must be in the age range of 18 to 45 years
  • Annual household income of the female applicant should be below Rs 1 lakh are eligible
  • Maximum loan of Rs 1 lakh available, which may vary according to the policies of the respective state governments.
  • A subsidy of 30% is offered subject to a maximum of Rs 10,000 to women who are widowed, disabled or destitute.

Read More: 5 Banks Offering Easy Loans to Small Business Entrepreneurs in 2020

Mahila Udyam Nidhi Scheme

This scheme is offered by Punjab National Bank and Small Industries Development Bank of India (SIDBI), which supports women entrepreneurs to set up a new venture or finance existing venture.

Features of the scheme 

  • Loans extending of up to Rs 10 lakh
  • Repayment tenure of 10 years
  • A 5-year moratorium period is granted by SIDBI
  • Interest rates depending upon market rates
  • Assistance also in upgrading and modernisation of existing projects

Cent Kalyani Scheme

This scheme is offered by Central Bank of India with an aim to support women in starting a new venture or expanding or modifying an existing enterprise.

Features of the scheme 

  • Loan availed by women involved in village, cottage industries, micro, small and medium enterprises, self-employed women, agriculture and allied activities, retail trade, and government-sponsored programme.
  • No collateral required 
  • No processing fee charged
  • Loan amount granted up to Rs 100 lakhs
  • Interest rates vary according to market

Bhartiya Mahila Bank

In an aim to provide financial assistance to under privileged women willing to start their own venture, Bhartiya Mahila Bank implemented this scheme. The bank got merged with State Bank of India in 2017.

Features of the scheme 

  • Loan offered of an amount of up to Rs 20 Crore for business needs.
  • Grants collateral free loan of up to Rs 1 crore under Credit Guarantee Fund Trust for Micro and small enterprises.
  • Repayment tenure available up to seven years
  • Loan offered at a concession of 0.25% on interest rate which includes combo of working capital and term loan.

Different plans under this scheme include: 

Parvarish – To set up day care creches, BMB Parvarish Loan is offered to self-employed women or homemakers. Maximum limit of loan can be Rs 1 Crore without any collateral.

Shringaar – To set up a parlour or purchase equipment’s for the same or to meet the daily business expenses, BMB offers loan without any security.

Annapurna – Entrepreneurs willing to set up food catering related business between 18-60 years or want to expand the existing small business can avail this loan.

Tread Scheme – In addition to offering financial assistance to women, TREAD Scheme offers all-round assistance to women entrepreneurs. Entrepreneurs are trained in various aspects of the business, including training, information gathering, counselling etc. Applicants need to get their project appraised by approved financial institutions. Later the government grant will cover up to 30% of the project cost and the respective financial institution will finance the remaining 70%.

KBL Mahila Udyog Loan from Karnataka Bank 

Karnataka Bank offers KBL Mahila Udyog Loan to women entrepreneurs for any source of income generation activity. The maximum loan amount offered is Rs. 10 lakh for a repayment tenure of 120 months. The women entrepreneurs should have a minimum of 51% shareholding and controlling stake in a firm or company.  

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