Women in India are still a very small percentage of total business owners. Most women say lack of access to funds is the main reason they have been unable to set up their own businesses. The Government of India recognized this as an issue and has been working on providing different financial schemes for women entrepreneurs in India.
- 1 List of best Government schemes for women entrepreneurs
- 2 Access to 3000 MSME women entrepreneurs to GeM
- 3 The Cent Kalyani scheme for Women
- 4 Mudra Yojana Scheme for women
- 5 Annapurna Scheme for Women
- 6 Bharatiya Mahila Business Bank (BMB) loan for Women
- 7 Mahila Udyam Nidhi Scheme for Women
- 8 TREAD (Trade-Related Entrepreneurship Assistance and Development) scheme for Women
List of best Government schemes for women entrepreneurs
Access to 3000 MSME women entrepreneurs to GeM
The Government of India has rolled out an initiative to help over three thousand women entrepreneurs from the MSME sector to sell on the state-run Government e-marketplace (GeM). The Government plans to get over 6 crore women on board to sell on this platform.
To enable this, the Government is empowering over 15 self-help groups with the Government’s public finance management system. The Government also plans to help provide easy loans to these SHGs with an app.
Related read: Government e-Marketplace: Everything MSMEs need to know
The Cent Kalyani scheme for Women
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.
Mudra Yojana Scheme for women
The Mudra Yojana Scheme aims to empower individual women entrepreneurs who want to start their own small businesses like tailoring units, tuition centres or schools etc.
Also, this scheme also encourages women’s groups who want to start a business venture together.
The Mudra loan scheme requires zero collateral security and it comes in 3 different criteria:
Shishu – The loan amount is limited to ₹50,000 and is mostly meant for new business ventures.
Kishor – This scheme sanctions loans between ₹50,000 to ₹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 of a Mudra card which is similar to a credit card. The funds available are limited to 10% of the loan amount granted to you.
Related read: Is Microfinancing for women entrepreneurs a good idea in the long run?
Annapurna Scheme for Women
This Government scheme is designed for women entrepreneurs who want to start a food catering business. This scheme provides loans up to ₹50,000 so that you can buy essentials like gas connections, utensils etc. However, you do require a guarantor. This scheme allows you to repay the loan in 36 instalments over a 3 year period. The current market rates would determine the interest rates.
Related read: How to sell food online in India: the complete guide
Bharatiya Mahila Business Bank (BMB) loan for Women
The bank provided financial assistance to underprivileged women to help them start their own ventures. The bank has now merged with the State Bank of India in 2017. Under the loan scheme, women business owners can get loans up to ₹20 crores. There is no need for collateral up to ₹1 crore.
The scheme has 4 categories:
- For beauty parlours, spas and salons – BMB Shringaar
- Food catering – BMB Annapurna Loan
- For Small and Medium enterprises – BMB SME Easy
- For daycare centres – BMB Parvarish
Mahila Udyam Nidhi Scheme for Women
This government scheme for women is under the Small Industries Development Bank of India, and it offers financial aid up to ₹10 Lakhs.
This scheme helps women entrepreneurs upgrade or modernise their existing resources and tools.
You have 10 years to repay the loans. This includes a moratorium period of 5 years.
TREAD (Trade-Related Entrepreneurship Assistance and Development) scheme for Women
The Trade-Related Entrepreneurship Assistance and Development scheme helps women entrepreneurs get the necessary training as well as counselling. As part of this, leading institutions around the country would finance 70% of the expenditure, with the government giving the other 30%. The total grants value would be up to ₹5 lakhs.
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