Top 9 Schemes Financing Women Entrepreneurs in India to Fly High and Shape Up their Dream

Medha Shukla Medha Shukla
Mar 7, 2022 6 min read
Top 9 Schemes Financing Women Entrepreneurs in India to Fly High and Shape Up their Dream

India has been the victim of patriarchy for ages and this has led to the downfall in women-specific matters. Earlier, various social taboos restricted women from studying and working. Entrepreneurship was something out of reach for them. But in recent decades, things have changed a lot.

Women have now achieved a lot. Not a single sector is being left where they are not successful with flying colours. Despite restrictions and lack of social support, women's entrepreneurship is rising. As a result, the government has taken steps to boost women to come forward and give way to their dreams and career.

Gone are the days when lack of capital was a barrier for women to start a business. Several schemes and benefits are being introduced by big organizations for women's development. Also, this development is heading towards the economic growth of the nation and it is an inspiration for many.

A report by TOI states that more than 1 lakh projects are running under the Prime Minister's Employment Generation Program since its start. Well, if you are a woman and have a top-notch business plan, you are in the right place. Read out the article below to find out which scheme suits you the best.

Annapurna Scheme
Udyogini Scheme
Stree Shakti Scheme
Bharatiya Mahila Bank Business Loan
Cent Kalyani Scheme
Mudra Yojana Scheme
Dena Shakti Scheme
Mahila Udyam Nidhi Scheme
TREAD Scheme

Annapurna Scheme

The State Bank of Mysore and Bharatiya Mahila Bank is offering Annapurna Scheme to women interested in starting a food catering business. This government launched scheme provides a loan of up to Rs 50,000. Further, the loan is being used as working capital to buy products such as utensils and kitchen equipment.

Moreover, a guarantor and collateral in the form of the asset are needed to avail this scheme. The best part of this scheme is that you can repay the amount within three years.

Also, women who avail of the loan get a grace period of one month before the repayment process begins. But, the interest rates depend on the market rate. The lender gets the benefit by not paying the EMI for the first month.

Udyogini Scheme

Udyogini scheme was started by Women Development Corporation to provide loans to women who want to start their small ventures. In this scheme, any woman who wants to start a business categorized under 88 small-scale industries will get a loan of up to Rs 3 lakhs.

The industries include fisheries, groceries, trailering, poultry, dairy, bakeries, etc. Apart from that, if someone starts a business in the agricultural sector, they will be provided with an interest-free loan.

Besides, the government also proposes to give up to 30% subsidy on loans to make the repayment affordable for women entrepreneurs. Moreover, the scheme also offers training to women about business planning, pricing, and feasibility. The scheme helps micro industries to grow and support underprivileged women from rural areas to earn their livelihood.


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Stree Shakti Scheme

Started by various branches of SBI, this scheme is beneficial to women entrepreneurs associated with the Entrepreneurship Development Program (EDP) run by the state agency.

Women with majority ownership in small businesses are eligible for this program. Here, women can avail of a 0.5% concession on loans above Rs 2 lakh, and no security is needed when the loan amount is up to Rs 5 lakhs. Also, you can avail of a loan of up to Rs 50 lakhs.

Bharatiya Mahila Bank Business Loan

The scheme, implemented by Bhartiya Mahila Bank merged with the State Bank of India. It is a boon for women who want to run their businesses in the retail sector. The scheme allows for a loan of up to Rs 20 crore for a manufacturing enterprise.

Also, a concession to the extent of 0.25% on the interest rate ranges higher starting from 10.15%. Besides, the collateral-free loan is being offered up to Rs 1 crore under CGTMSE (Credit Guarantee Fund Trust For Micro and Small Enterprises) cover.

Cent Kalyani Scheme

The Cent Kalyani scheme was started by the Central Bank of India. It offers loans to women involved in Micro, Small, and Medium Enterprises, retail trading, or any agricultural practices.

Here, a loan of up to Rs 1 crore is offered to women entrepreneurs without any collateral or guarantor. The interest rate in this scheme depends on the market rate. Additionally, it requires no processing fee and the tenure is of up to 7 years.

Mudra Yojana Scheme

The Mudra Yojana Scheme or the Pradhan Mantri Mudra Yojana (PMMY) scheme was launched in 2015 by the government of India in order to help the startups and entrepreneurs in India. A "government scheme for small units" is also a great initiative for the women entrepreneurs and entrepreneurs-to-be who are willing to start with small enterprises like beauty parlors, tailoring stations, tuitions etc.

With the Mudra scheme, loans worth Rs 50,000 - Rs 50 lakhs can be availed of by women. Here, they should only have to provide collateral and guarantors in case the loan amount they request is over Rs 10 lakhs. The 3 plans that are under this scheme are:

  • Shishu plan - This extends loans up to Rs 50,000 for new businesses.
  • Kishor plan - This offers individuals and businesses loans that range between Rs 50,000 and Rs 5 lakh for the enterprises that are already established.
  • Tarun plan - This extends loans between Rs 5 lakh and Rs 10 lakh for the expansion of businesses.

Dena Shakti Scheme

Dena Shakti Scheme is one of the schemes offered by the Dena Bank, which empowers women entrepreneurs, where the women who are employed in the fields of agriculture, retail, manufacturing, are small enterprises or micro-credit organizations are hugely benefitted. The Dena Shakti Scheme offers women entrepreneurs up to Rs 20 lakhs for the women employed in the above-mentioned categories, whereas it extends loans up to Rs 50,000 in the micro-credit category.

Mahila Udyam Nidhi Scheme

Mahila Udyam Nidhi Scheme is another scheme centered on the women entrepreneurs of India. Launched under the Small Industries Development Bank of India (SIDBI), this scheme offers the women entrepreneurs of the country financial aid up to Rs 10 lakhs, which they can use to set up small-scale ventures. The upgrading and modernisation of the existing products are another vertical that is greatly empowered by the Mahila Udyam Nidhi scheme. The funds received through this scheme allow the women business leaders to have a time span of 10 years within which they need to repay the funds they receive, where there is a 5-year moratorium period. Β 

The TREAD Scheme, expanded to Trade Related Entrepreneurship Assistance and Development, is a government of India scheme that is focused on women who lack access to bank credit. Providing for business projects, conducting training and counselling sessions are some of the main focuses of the TREAD scheme. The scheme provides up to 30% of the total project cost via the government grant as per the assessment of the lending organisations, while the remaining 70% would be financed by the lending institutions themselves. The TREAD scheme offers a maximum of Rs 5 lakh per project.


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Conclusion

With the onset of women entrepreneurship in India and its fast-rising growth, government and non-government institutions are keen on supporting them. Fund generations and capital formation is now not a barrier anymore for women who either want to start a business as their dream project or want to earn their livelihood. The economy now needs contributions from women with the belief in their talent and hard work.

If you are one of them who want to start a business at an early age as your dream career or think of supporting your family, go on to avail the benefits of the schemes and funds by several institutions.

Now no more struggling to collect funds and no more arguments with family. Your power is within you. You need to wake up and make yourself aware of the benefits that revolve around you and are meant for you.

FAQ

Which scheme is meant for women entrepreneurs?

Annapurna Scheme, Udyogini Scheme, Stree Shakti Scheme, and Cent Kalyani Scheme are some of the schemes that are boosting women entrepreneurs.

How do I become a female entrepreneur?

Becoming a female entrepreneur is not easy still in this male-dominated society. Having a clear vision, identifying market opportunities duly, learning business skills, networking, planning finances are some of the fronts that a woman entrepreneur should develop on.

Who is the most famous female entrepreneurs?

Indra Nooyi, Vandana Luthra, Falguni Nayar, Kiran Mazumdar Shaw are some of the most famous entrepreneurs in India.

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