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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:
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.
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.
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.
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%.
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).
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.
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.
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.
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.
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.
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.
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