List of Best10 Business Loans for Women Entrepreneurs 2023

Men have primarily dominated entrepreneurship, but in the 21st century, it has taken a whole new turn. With major societal changes and women stepping out of their homes to create an identity for themselves, women entrepreneurs in India are also on a new high. From Nykaa’s founder Falguni Nayar, Limeroad’s mastermind Suchi Mukherjee to Shopclue’s founder Radhika Agarwal, each of these women proved that the sky is the limit. As individuals, women can reach the highest peaks of success. Whenever a lady has stepped into entrepreneurship, they have created an entirely new space for more opportunities and growth.

The Government of India has also taken significant steps to promote entrepreneurship among women. Now, availing of business loans under various schemes for women is easy. The government and financial institutions’ initiative is helping women show their uniqueness with their business ventures.

Schemes for women entrepreneurs that can help them to expand their businesses are given below:

Table of Contents

Mudra Yojana

Pradhan Mantri Mudra Yojana (PMMY) is one of the Government schemes for women entrepreneurs to foster an entrepreneurship culture. Those women who have the vision to initiate and cultivate their entrepreneurship dreams can opt for Mudra Yojana, which is available in many banks and financial institutions. Under this scheme, they will receive the loan amount as financial help to make them stand strong and build a brighter future for themselves. After the approval of Mudra schemes for women, the financial institutions will give them a Mudra card with the exact mechanism as a credit card to maintain their business’s cash flow. The card has a withdrawal limit of 10% of the loan amount. The Mudra Yojana has several schemes for women, depending upon the types and requirements of the business for expansion. The funds limit that women entrepreneurs can avail of ₹ ten lakhs as per the Indian Government.

Key Features

Offers an affordable rate of interest on the loan amount.
The three categories of Mudra Yojana with limits are Shishu with a ₹ 50,000 limit, Kishore with a ₹ five lakhs limit, and Tarun with a ₹ ten lakhs limit.
The loan amount can also be used for working capital funds requirements.
The loan tenure can be extended up to 36 months from the final loan disbursal date.

Requirements

No collateral is required to avail of the Mudra Yojana loan
The loan is provided to entrepreneurs in non-farming, non-corporate, and non-agricultural fields, run by women entrepreneurs
No defaults should have been on previous loans of the applicant.
No criminal records should be there against the applicant.
If the woman entrepreneur is a salaried individual, the last six months’ salary slip must be submitted.
ITR filing copies need to be submitted if the applicant is an existing entrepreneur.
Women entrepreneurs with more than 50% company’s stake are only eligible for the Mudra loan.
A full-proof, written business plan needs to be submitted for availing of the business loan.
Some major requirements are the submission of other documents, like identity proof, address proof, business registration certificates, and more.

TREAD Scheme

One of the Government schemes for women in India is the Trade-Related Entrepreneurship Assistance Development (TREAD) Scheme. It is aimed to protect the entrepreneurship rights of women. Under this women’s loan scheme, the entrepreneurs get the Indian government’s financial assistance for up to 30% of the project, while the bank will fund the rest 70%.

The main aim of this scheme is to create substantial and sustainable employment for the poor women section of society. Under the scheme, women entrepreneurs in India will get training and counseling to develop their technical skills through the right support. Additionally, with this scheme, the strength of NGOs and trade-related enterprises of women also gets a boost. Apart from support, counseling, and training sessions, the scheme also provides credit delivery to poor women facing societal problems.

Key Features

The TREAD government schemes provide up to 30% of the monetary business requirements for women. The rest, 70%, will be provided to women entrepreneurs by the bank, which will appraise their business.
Counseling, as well as training sessions, will be provided to the borrowers by the government.
The Government of India will credit borrowers with MSME IDs, IIE, NIESBUD, NIMSE, and EDIs.
Around 25% of the project funds will be given by the NGOs, EDIs, NISIET, and MSMEs.
The MSMEs, EDIs, NGOs, and NISIET are responsible for providing training and counseling sessions.

Requirements

Funding source details.
Verified identification and address-related documents.
Should have experience in handling women-centric and developing economic projects.

Mahila Udyam Nidhi Scheme

Mahila Udyam Nidhi Scheme, also known as MUN, is a financial scheme offered by the Small Industrial Development Bank of India (SIDBI). This women’s loan scheme aims to boost, encourage, and empower entrepreneurship among women by providing financial assistance. MUN scheme offers loans to women at a concessional interest rate for their enterprises. Micro, small, and medium enterprises (MSMEs) can use the funds provided under this scheme to undertake manufacturing, services, and production-related projects.

Loan amounts of up to ₹ 10 lakhs can be availed by women entrepreneurs in India under the MUN scheme. This fund can be used to start a small-scale enterprise or to start their own business. The interest rate on the loan amount may vary from bank to bank. The financial assistance this women’s loan scheme provides can also be used to expand or upgrade their existing enterprise or business. The scheme’s major objective is to cover the equity gaps for the entrepreneurs.

Key Features

The maximum amount that can be availed under this scheme is ₹ 10 lakhs.
25% of the loan amount will be taken as the margin for women entrepreneurs in India.
In many situations, 1% of the loan amount will be taken as the service charge.
The moratorium time for the loan is five years.
The repayment tenure for the loan can be extended up to a maximum of 10 years.

Requirements

The applicants must be subsisting women entrepreneurs in India of MSME, SSIs, or Tiny Units.
No collateral is required to avail of the funds under this scheme.
The women should hold a minimum of 51% financial in the business.
Existing or newly started MSMEs involved in trading, manufacturing, and services businesses can apply for this loan.
The minimum investment in the MSME, SSI or Tiny Units should be ₹ 5 lakhs.
The project cost should not exceed the limit of ₹ 10 lakhs.
MSMEs involved in various activities like business improvement, expansion, technological upgrade, and diversification are eligible for this scheme.

Stree Shakti Package For Women Entrepreneurs

Stree Shakti Scheme is specially curated and designed to find and support entrepreneurship among women. This is done especially by providing concessions in financial processing and assistance. The major eligibility criteria that the SBI looks out for is that women should own more than 50% stake. Stree Shakti Woman Entrepreneur Scheme aims to empower women involved in business enterprises of self-employed professionals like doctors, beauticians, etc., and retail trade.

Stree Shakti Package offers a wide array of concessions. It includes a 5% lowered margin for separate categories, a 0.5% concession will be provided when the loan amount is more than ₹ two lakhs, no collateral is required up until ₹ five lakhs loan amount for tiny sector business, and a special margin concession of 5%.

Key Features

Entrepreneurs in retails, trade, services, and manufacturing can avail of these business loans for women.
It focuses on promoting and protecting women’s entrepreneurship in India by joining hands with the Indian government and various financial institutions.
Special concession in the margin of 5% is given to women entrepreneurs and professionals.
Loan amounts of up to ₹ 20 lakhs along with term loans and the working capital facilities can be availed.
The business loans for women under this scheme pool human and material resources according to the government to empower women working in Indian rural zones.

Requirements

Women entrepreneurs should own more than 50% shares of the business.
The only businesses operated by women are liable for loans under this scheme.
To identify the ‘Women Entrepreneurs’ in India, the scheme’s definition is applied to check the eligibility as per the government.
Women professionals such as doctors, chartered accountants, architects, and beauticians can also avail of this loan.
There is no collateral required for women entrepreneurs. However, if the loan amount is ₹ one crore or more, the applicants need to furnish collateral to avail of the loan.
Balance sheets must be submitted for the last three years with ITR and other required documents.
Valid identity proof and address proof, articles of association, memorandum, statements of assets and liabilities, and SSI registration are a few more important documents that need to be furnished.

Bhartiya Mahila Business Bank (BMB) Loan

Bhartiya Mahila Business Bank is a public banking institution that provides multiple business loans for women. These schemes have numerous benefits to offer to promote economic activities and set up a strong foundation for women’s entrepreneurship. The bank has made it easy for women to get entrepreneurship loans to establish and expand their businesses. The interest rates applied to the women’s loan scheme are at the sole discretion of the RBI and SBI. Bhartiya Mahila Business Bank offers loan amounts of up to ₹ 20 crores. The BMB Loan schemes for women under CGTMSE are BMB Shringaar (a loan for beauticians, parlours, etc.), BMB Annapurna Loan (a loan for food catering), BMB SME Easy (a loan for medium and small enterprises), and BMB Parvarish (a loan for daycare centers).

Key Features

The repayment tenure can be extended for up to 7 years.
A concession of 0.25% is offered to women entrepreneurs.
It is a combination of term loans and working capital.
Helps women entrepreneurs to expand their businesses to a new horizon.
The rate of interest for the loan amount is at the sole discretion of RBI and SBI.

Requirements

Valid identity, income, and address proofs.
Collateral is not required for up to ₹ 1 crore of the loan amount.
Partnership firms, sole proprietorships, private limited companies, public limited companies, cooperative societies, and other women-led enterprises and businesses can apply for loans under this scheme.

Dena Shakti Scheme

Dena Shakti Scheme is a business loan scheme for women entrepreneurs under the public sector Dena Bank. Under this scheme, the women entrepreneurs in India get a platform to get the financial assistance that can help them to build firm foundations and expand their business to new horizons. The bank offers a woman’s loan scheme at affordable interest rates. The loan under this scheme is curated to match the working capital needs by fulfilling the financial requirements and maintaining the business’s cash flow. Through this scheme, Dena bank’s main objective is to provide financial support to women entrepreneurs in various sectors.

Key Features

It aims to promote growth for women entrepreneurs by providing them with financial help.
It promotes women-led businesses for small enterprises, micro and small manufacturing enterprises, retail trade, education, housing, and more.
Women entrepreneurs are provided with a 0.25% concession on the rate of interest.
It combines both term loans and working capital.
The repayment tenure offered by the bank is flexible and can be extended for up to 10 years.
Retail stores and microcredits can also avail of this loan, along with the entities involved in allied activities and the agriculture sector.

Requirements

The women entrepreneur should hold ownership of more than 50% stakes of the enterprises/businesses.
Valid proofs for address, identity, and business ownership.
Last three years’ income tax returns (ITR) along with Form 16.
The applicant should not be a defaulter of any financial institution.
The applicant should own the business or be a part of any partnership firm.

Udyogini Scheme

Under this scheme, women can feel empowered and be ‘Aatmanirbhar’ by investing their energy, time, and financial assistance provided by the government schemes for women. The poor women entrepreneurs in India can get the benefits of liberal loans for commencing their business in various fields. This section can become financially independent and also help them to support their families in the rural backward areas. It also contributes to the overall growth of the Indian economy.

In this scheme, interest rate-free loan is provided to women from sections of the society without any biases. This women’s loan scheme mainly focuses on undertaking and organizing training sessions along with offering financing support.

Key Features

Subsidized loans are offered to women belonging to rural areas.
Funding support is provided to the businesses involved in manufacturing, retailing, SSI, traders, self-employed professionals, and more.
Around 88 categories of SSI can get financial assistance under this woman entrepreneur scheme, such as bangles, bottle cap manufacturing, clinic, dry cleaning, etc.

Requirements

Loans under this scheme are only available for women entrepreneurs.
The applicant should have any default previously with any financial institution.
Applicants should have good credit scores and have proof to furnish their repayment capabilities.
Should furnish all the information and documents as asked under this scheme.

Cent Kalyani Scheme

Cent Kalyani is one of the schemes for women offered by the Central Bank of India (CBI). It was mainly introduced to provide financial aid to women entrepreneurs. This loan scheme will help women entrepreneurs to start their businesses, expand the existing ones, or even find employment opportunities. The Cent Kalyani scheme mainly aims to procure equipment and machinery, meet the capital needs, and maintain the cash flow to meet daily goals. Women in both micro and small enterprises can apply for loans under this scheme. Self-employed individuals and professionals (doctors, beauticians, chartered accountants, etc.) are also eligible to apply for this scheme. The loan under this scheme will be considered a term loan. In case, the working capital has been ventured to the enterprise, then the loan under Cent Kalyani will be taken as Overdraft or Cash Credit. If it is a non-fund-based venture, the loan will be taken as a Guarantee or Letter of Credit.

Key Features

Cent Kalyani Scheme offers financial security for existing and new women entrepreneurs in India.
Loan assistance of up to ₹ 100 lakhs can be availed under this women’s loan scheme.
About 25% of the amount is provided as the term loan amount.
Cent Kalyani Scheme has zero processing charges/fees.
Women entrepreneurs are not required to furnish any collateral to avail of loans under the women’s loan scheme.

Requirements

All the valid and updated KYC documents should be furnished to avail of the loan.
Profit and loss sheets and the balance sheet need to be submitted.
There should be no criminal records against the applicant and defaulter in any financial institution.

Synd Mahila Shakti Scheme

The women’s loan scheme launched by Syndicate Bank, Synd Mahila Shakti Scheme, aims to promote women’s entrepreneurship in the country. Under this scheme, the entrepreneurs can get financial assistance for the women engaged in small-scale business, self-employed enterprises, and professional and retail trade. The bank provides women entrepreneurs assistance through credit facilities. The main plan of the business loans for women scheme is to offer credit facilities and help in fulfilling working capital requirements for new as well as existing businesses.

Key Features

It promotes women’s entrepreneurship development.
Women entrepreneurs get a 0.25% concession on the loan amount
It combines both working capital and term loan
It offers flexible repayment tenure that can be extended for up to 10 years.
The repayment tenure includes the moratorium time period
It provides free credit cards to the applicants whose application is accepted
Women also get skill development training from RUDSETI or SIRD
Loam amount of ₹ 5 crores for expanding existing one or to start a new business

Requirements

Women experience should have adequate knowledge in their respective fields
The women should hold more than 50% stake in their company
Women applicants should be from a technical background and hold a diploma or a degree
The businesses should have a 50% financial share in the name of the women entrepreneur.
Public and private companies should have a woman in a significant position as a managing director or director.

Pradhan Mantri Rozgar Yojana

It is one of the government schemes for women to empower them and create sustainable self-employed opportunities. The scheme was first started in 1993 to help by providing financial assistance for starting their businesses. This scheme is not only for women but also for the youths aged between 18 and 35 years. The government-initiated scheme will help in increased self-started enterprises in the services, trade, and manufacturing sectors.

Key Features

The repayment tenure offer on the scheme is flexible and can be extended up to 7 years.
Training sessions are also provided to the borrowers for 15 to 20 days to help them set their business right.
Assistance eligibility is also provided for projects that cost up to ₹ 2 lakhs.
This women’s loan scheme covers all viable business sectors, including allied sectors and agriculture.

Requirements

The women applicants should have completed their education by standard 8th.
The applicant should be living in their area of residence for a minimum of 3 years or more.
Collateral is not required for loan amounts up to ₹ 1 lakh.
The family’s income should be a minimum of ₹ 40,000 and not exceed the limit of ₹ 1 lakh.
Must not have defaulted payment in any financial institution.
Should be unemployed.

Conclusion

Entrepreneurship is the new wave where women are gaining a competitive edge. Women entrepreneurs in India have emerged from the cocoon and carved out a space for themselves in the financial world to challenge centuries-old retrograde traditions. Thanks to their employment in the business sector, they now have financial freedom and a platform to showcase their managerial abilities. Thanks to the entrepreneurship sector, they now possess the courage to face the world and guide it in their direction. With several programs for women entrepreneurs, the Indian government and other national financial institutions are also encouraging female entrepreneurship. The programs offered to female company owners aid them in achieving their objectives. They are doing everything they can to help them and improve the position of women in society.