Business growth, these days, has come a long way from where it was. Earlier, the options were limited for one to grow their business. But now, as technology is evolving and times are changing, there are many ways in which business growth can be achieved. Such an evolution is a necessity, especially for women. Women empowerment has gained momentum in recent years. And no doubt, it will only be gaining more and more popularity in the world. To keep it up, the Indian government is also focusing on it by supporting women. As the number of women entrepreneurs is increasing, there is also an increment in the number of schemes which ensure that these women are well equipped to run their businesses. There are many opportunities out there. One must know fully well how to grab those opportunities and do their homework. Here are a few tips that can help:
One must, first, check their eligibility. After all, without being eligible for a scheme, they won’t be able to get the financial aid that they require. One can identify among suitable business loans for women and get all the specifications or eligibility criteria that they must keep in mind. If some of the documents are required, they can be ready for financial aid soon.
One must be very much educated in terms of such schemes if they want to apply on time. Various schemes are coming up, and one must have the details of the ones that concern them. Apart from that, they should also keep track of their applications in case they have filled them.
Since there are many schemes, they are not always available. Almost all the schemes for a business loan for women have an expiry date. In other words, there is always a time limit on these until one can fill out their application and submit it. Post that, there is no use in filling out the application as it will not be valid. The best way to do this is by blocking a certain time to apply for such grants specifically.
Most of the time, there are some other details, such as documents, that one might forgetto include. To prevent such mishaps, one must gather all the details about the documents, portals where they must be submitted, who they need to contact, etc., to stay on top of things from the beginning. Revision is also a thing that one must practice in their applications to enable smooth processing. Business Loan Schemes for WomenHere are some of the schemes for a business loan for women that turn out to be the most helpful for women in business:
MUDRA Loan or MUDRA Yojana was launched back in 2015 under the Pradhan Mantri Mudra Yojana (PMMY). The scheme is offered in three categories: Shishu, Kishor, and Tarun. With concessional interest rates, the loan schemes enable women in business to get a loan of up to 10 Lakh rupees. The amount can be easily used for either expansion of one’s business or starting their own business. It has a tenure of repayment of up to 5 years.
As one of the unique schemes, the Stree Shakti package bolsters women’s entrepreneurship. It provides various concessions that women can take advantage of. There is a concession of 0.05 % on loans exceeding the amount of about ₹ 2 lakh. One catch of this scheme is that it is only available for women who are in most ownership of their business. One can avail up to ₹ 20 lakhs of loans.
Bhartiya Mahila Bank Business Loan is available for women entrepreneurs with an amount that goes up to ₹ 20 Crores. There are three different types of Bharatiya Mahila Bank Business Loan schemes which include: Shringaar: This loan, the BMB Shringaar loan, applies to self-employed women or homemakers who are planning a startup or just want help meeting their daily business expenses. Parvarish: This loan can go for an amount up to ₹ 1 Crore. It provides loans to women who are self-employed women or homemakers for a specific purpose, that is, to set up day-care creches. One can avail of it without collateral security under the CGSTSM or Credit Guarantee Fund Trust for Micro and Small Enterprises scheme. Annapurna: This one is especially for women who are within the age of 18 to 60 yearsand are in food entrepreneurship. IT helps them start or expand their small businesses and can avail of this loan. Unlike the schemes for business loans for women mentioned above, this one requires collateral.
Under the Dena Shakti scheme, women entrepreneurs can get a variety of financial aids and services. This one empowers women in business in such a way that they can expect a concession rate of about 0.25% interest. It covers various sectors, including microcredits, retail stores, manufacturing sector, agriculture and related sectors, and small enterprises.
The Punjab and Sind Bank launched the Udyogini program to offer business loans to women. In addition to that, it also offers low-interest rates, which are favourable to women entrepreneurs. One can use this scheme’s help to set themselves up and ensure a smooth establishment and running of the business. Small-scale self-employed women entrepreneurs are only examples of the categories the scheme covers. These schemes are empowering and highly effective in setting up a business. This information is also one that comes in handy for women who have no idea where they must start their journey. Frequently Asked Questions (FAQs)
Yes, all women, whether they are housewives or not, can apply for a business loan under the various schemes specially designed for women. They are applicable if one plans to put the money into their business venture.
Yes, all the business loan schemes in India which are designed for women can be availed only by Indian women.
One of the first things that one must keep in mind while applying for a business loan for women is eligibility and whether they meet the criteria or not.
Yes, one can easily apply for a loan if they want to use the money to expand the said business.
There is no minimum amount in most organizations. Although the amount also depends on the organization.
Yes, some of the organizations do offer business loans for women in an amount above Rs. 1 crore.
Yes, in India, specific loans are available for women who come under SC & ST.
Yes, one may opt for one business loan scheme over the other due to its benefits, such as concessions or lower interest rates.
The minimum age for a woman in a business to take out a loan for her business is 18. However, this might change as per the institutions. For instance, some banks have 25 as the minimum age limit for business loans for women.
Yes, one must have a good credit score to take out a loan. The credit score might depend on the institution that they are applying to.