5 Best Business Loan Scheme for Women Entrepreneur Startups or entrepreneurial endeavors are unquestionably not regarded as novel business ideas in India these days. Leading private and public sector banks, known as NBFCs, have launched a number of business lending programs for female entrepreneurs in an effort to spur the expansion of entrepreneurial endeavors. Women entrepreneurs can also receive business and working capital loans at reduced interest rates from a limited number of carefully chosen lenders. Now let’s examine the top 5 loan programs that Indian financial institutions provide to female entrepreneurs.
5 Best Business Loan Scheme for Women Entrepreneur
1. Cent Kalyani from the Central Bank of India
5 Best Business Loan Scheme for Women Entrepreneur, The Central Bank of India provides startup and business loans to women entrepreneurs who wish to start a new company or who wish to grow or change their existing one.
Features:
- The range of interest rates is 8.70% to 8.95% annually.
- 8.70% per annum is the interest rate for loans up to Rs. 10 lakh.
- 8.95% per annum is the interest rate for loans beyond Rs. 10 lakh and up to Rs. 100 lakh.
- Goal: To cover ongoing expenses such working capital expenditures and the acquisition of plant, machinery, and equipment.
- Type of Loan: Fund-based working capital facility for term loans; non-fund-based working capital for overdrafts and cash credits; letters of credit and guarantees, etc.
- The maximum loan amount is Rs. 100 lakhs.
- Processing Charge: Nothing
- Coverage for CGTMSE: Available
- Security, Collateral, or Third-Party Guarantee: Not necessary, as covered by CGTMSE’s Guarantee cover
- Insurance: Full coverage with a bank clause for inventory, machinery, equipment, etc.
- Women entrepreneurs can apply for business loans if they are providing services to MSMEs, rural and cottage industries, agricultural, retail, and government-backed companies.
Note:- The bank’s 1-year MCLR is 8.45%, and if an account is rated by an outside organization, there is an additional interest concession of 0.25% on the interest rate. 5 Best Business Loan Scheme for Women Entrepreneur,
2. Mudra Loan under PMMY
5 Best Business Loan Scheme for Women Entrepreneur, MUDRA Loan, a bank loan program available to individuals, startups, and business owners, as well as women entrepreneurs throughout India, was introduced in 2015 under the Pradhan Mantri Mudra Yojana (PMMY). Women who wish to launch their own businesses or grow their current ones can apply for loans up to Rs. 10 lakh under this plan. Three categories—Shishu, Kishor, and Tarun—are used to offer the loan amount. The following lists the fundamental characteristics of the Mudra Yojana lending program provided by banks and NBFCs:
Features:
5 Best Business Loan Scheme for Women Entrepreneur,
- Women Entrepreneurs’ Concessional Interest Rates
- Loans for businesses without collateral: NBFCs and banks do not require security or collateral.
- Type of Loan: Overdraft/Term Loan
- Three Types of Loans: Tarun, Kishor, and Shishu
- Loan Amount: Up to Rs. 10 lakh, with no minimum or maximum.
- Tenure of Repayment: Five Years
- Processing fee: between 0% and 0.50 percent of the approved loan amount
- Loans for Indian women in both urban and rural areas
Mudra loans are provided to women in order to support the MSME sector and female entrepreneurs.
3. The Self Help Group-Bank Linkage Program (SBLP) of ICICI Bank
5 Best Business Loan Scheme for Women Entrepreneur, Collateral-free business loans for Self Help Groups (SHGs) with 10–20 women have just been made available by ICICI Bank. This scheme offers a maximum loan amount of Rs. 10 lakh with a maximum repayment period of three years.
Eligibility Criteria
5 Best Business Loan Scheme for Women Entrepreneur,
- SHGs should be in operation for at least six months.
- A group of ten to twenty women can receive funding.
- A minimum of Rs 5,000 in savings or corpus is needed.
Features:
5 Best Business Loan Scheme for Women Entrepreneur,
- Interest rates can reach 21.50% annually.
- The loan’s objectives include livelihood, revenue-generating, and business expansion.
- Loan Amount: Up to Rs. 10 lakh for ICICI Bank customers and up to Rs. 7.5 lakh for customers of other banks
- Loans without collateral
- Tenure of Repayment: Up to 36 months
4. Stand-Up India
5 Best Business Loan Scheme for Women Entrepreneur, The government launched the Stand Up India loan program to provide credit facilities for the establishment of greenfield enterprises, with loan amounts ranging from Rs. 10 lakh to Rs. 1 crore.
Features:
5 Best Business Loan Scheme for Women Entrepreneur,
- Interest rate: 3% + Tenor Premium + Base Rate + (MCLR)
- Repayment Tenure: Up to seven years, with an 18-month moratorium
- Cash credit limits will be used to approve working capital limits over Rs. 10 lakh.
- It is anticipated that the loan specifications will cover 85% of the project’s cost. Nevertheless, it won’t apply if the borrower’s contribution and convergence support come from any other plans that cost more than 15% of the project.
- Collateral is needed as the main security or assurance for Stand-up India Loans under the Credit Guarantee Scheme (CGFSIL).
5. PNB Mahila Udyami
5 Best Business Loan Scheme for Women Entrepreneur, Types of loans include working capital, term, and loan. Depending on the nature of activity and income production, business loan schemes of up to Rs. 10 lakh are available to both new and existing units. The terms of the loans are three to five years (Term Loan) and three to six months (Overdraft Facility), with a moratorium period of three to six months. The margin is 0% up to Rs. 2 lakh, 20% between Rs. 2 lakh and Rs. 5 lakh, and 25% between Rs. 5 lakh and Rs. 10 lakh.
Features:
5 Best Business Loan Scheme for Women Entrepreneur,
- Any individual woman, female entrepreneur, or business in which women entrepreneurs own at least 50% of the capital. However, women who hold ST, SC, or BPL cards will be given preference.
- R-SETIs, skill development institutions, and other training institutions prioritize certain categories of women entrepreneurs.
- The applicant could not be in arrears with any bank or financial organization.
- Beneficiaries of government programs who take out loans are not eligible.
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