The government of India has brought forward numerous schemes to boost small businesses by women.
On Women’s Day, Prime Minister Narendra Modi asked women to take over his social media accounts to nominate women change-makers using #SheInspiresMe.
This Women’s Day, I will give away my social media accounts to women whose life & work inspire us. This will help them ignite motivation in millions.
— Narendra Modi (@narendramodi) March 3, 2020
The Government is also working on providing different financial schemes for women entrepreneurs in India.
Government schemes for women entrepreneurs in India
1. Access to 3000 MSME Women Entrepreneurs to GeM
The International Women’s Day, the Government rolled out a new initiative to help over 3K women entrepreneurs from the MSME sector to sell on the state-run Government e-marketplace.
The Government plans to get over 6 crore women on board to sell on the GeM platform.
To enable this, the Government is empowering over 15 self-help groups with the Government’s public finance management system. Also, the Government plans to help provide easy loans to these SHGs with an app.
Read more about it here
2. The Cent Kalyani Scheme
Under this Government scheme, you can access loans up to ₹1 crore sanctioned with a margin rate of 20%. Interest on loans depends on market rates. The loan tenure will be a maximum of 7 years including a moratorium period of 6 months to 1 year.
The Central Bank of India set up the Cent Kalyani Scheme with the main objective of encouraging women entrepreneurs to start a new project or expand their current one.
This Government scheme for entrepreneurs applies to self-employed women (doctors, consultants) and women engaged in manufacturing and serving industries.
The primary purpose of the scheme is to meet capital expenditure like Plant and Machinery/equipment as well as cash flow.
3. Mudra Yojana Scheme For Women
The Mudra scheme aims to empower individual women entrepreneurs who want to start their own small businesses like tailoring units, tuition centres or schools etc.
The scheme also encourages women’s groups who want to start a business venture together.
The Mudra loan scheme requires zero collateral security. Also, it comes in 3 different criteria:
Shishu – Under this, the loan amount is limited to ₹ 50,000 and is mostly meant for new business ventures.
Kishor – This schemes sanctions loans between₹ 50,000 to INR 5 lakhs and can be availed by those who have a well-established enterprise.
Tarun – This Government scheme for women sanctions loans up to ₹ 10 lakhs and can also be availed by women-run small businesses which are well-established, but want to expand operations.
Post access to the Mudra loan, you avail a Mudra card which is similar to a credit card. The funds available are limited to 10% of the loan amount granted to you.
4. Orient Mahila Vikas Yojana scheme
Launched by the Oriental Bank of Commerce this scheme provides capital for women for starting small businesses. Women entrepreneurs with a 51% share in their business are eligible for the loan. Women do not need to have collateral if loans are between ₹10 lakhs to ₹25 lakhs for small-scale industries.
The loan repayment time is 7 years and offers concession of 2% on the rate of interest.
5. Bharatiya Mahila bank schemes
The bank was founded to provide financial assistance to underprivileged women so that they can start their own venture.
For the manufacturing sector, the bank offers loans as high as ₹20 lakh. The Bharatiya Mahila Bank can even authorise a loan of up to ₹1 crore without asking for collateral. It was merged with the State Bank of India in 2017.
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