7 Best Business Loan For Women In India

Are you a woman entrepreneur in India who wants to start or grow your own business? Do you need financial support to turn your dreams into reality? If yes, then you are not alone.

Many women in India have great ideas and skills to run successful businesses, but they often face challenges and barriers in accessing finance. According to a report by Bain & Company and Google, women-owned enterprises in India receive only 17% of the total credit extended by formal sources.

This is where business loans for women come in handy. Business loans are a type of financing that can help you cover various expenses related to your business, such as purchasing equipment, hiring staff, marketing, expanding, etc.

There are many schemes and programs in India that offer business loans for women at attractive terms and conditions. These schemes are designed to empower women entrepreneurs and promote their economic and social development.

In this article, we will explore 7 best business loan for women in India that you can apply for and avail the benefits. We will also provide you with some tips and suggestions on how to choose the best loan option for your needs and goals.

Business Loan For Women In India By Government

Udyogini Scheme

Business Loan For Women

The Udyogini Scheme is a government initiative that offers monetary assistance to women entrepreneurs in India. The scheme is implemented by various state governments and NGOs with the support of the central government.

The Udyogini Scheme aims to provide financial assistance to women entrepreneurs who belong to the below poverty line (BPL) category or are widows, destitute, or disabled. The scheme also covers women entrepreneurs who are involved in agriculture, animal husbandry, fisheries, handicrafts, handlooms, etc.

The eligibility criteria for the Udyogini Scheme are as follows:

  • The applicant should be a woman aged between 18 and 45 years.
  • The applicant should belong to the BPL category or be a widow, destitute, or disabled.
  • The applicant should have a viable business plan or project proposal.
  • The applicant should have undergone training or orientation from a recognised institution or agency.

The loan amount under the Udyogini Scheme varies from state to state, but it generally ranges from Rs. 1 lakh to Rs. 3 lakh. It is small business loan for women which also subsidised by the government and is usually around 4% per annum. The repayment period is up to 5 years.

Some of the benefits of the Udyogini Scheme are:

  • It provides easy and hassle-free access to finance for women entrepreneurs.
  • It offers low-interest rates and flexible repayment options.
  • It helps women entrepreneurs to start or expand their businesses and generate income and employment.
  • It enhances the self-confidence and empowerment of women entrepreneurs.

Some of the examples of businesses or sectors that can benefit from the Udyogini Scheme are:

  • Agriculture: Women entrepreneurs can use the loan amount to buy seeds, fertilizers, pesticides, tools, machinery, etc. for their agricultural activities.
  • Animal Husbandry: Women entrepreneurs can use the loan amount to buy animals, feed, medicines, equipment, etc. for their animal husbandry activities.
  • Fisheries: Women entrepreneurs can use the loan amount to buy fish seeds, nets, boats, ice boxes, etc. for their fisheries activities.
  • Handicrafts: Women entrepreneurs can use the loan amount to buy raw materials, tools, machinery, etc. for their handicrafts activities.
  • Handlooms: Women entrepreneurs can use the loan amount to buy yarns, looms, accessories, etc. for their handlooms activities.

Stree Shakti Yojana

Business Loan For Women

The Stree Shakti Yojana is another government scheme that provides concessional loans to women entrepreneurs who are enrolled in Entrepreneurship Development Programmes (EDPs) organised by state agencies.

The Stree Shakti Yojana is catered by SBI currently.

The Stree Shakti Yojana aims to encourage and support women entrepreneurs who want to start or expand their small-scale enterprises. The scheme also provides training and guidance to women entrepreneurs on various aspects of entrepreneurship.

The eligibility criteria for the Stree Shakti Yojana are as follows:

  • The applicant should be a woman aged above 18 years.
  • The applicant should have participated in an EDP organised by a state agency for at least two weeks.
  • The applicant should have a viable business plan or project proposal.
  • The applicant should have a minimum of 50% ownership in the enterprise.

The loan amount under the Stree Shakti Yojana depends on the nature and size of the enterprise, but it generally ranges from Rs. 50,000 to Rs. 25 lakh. The interest rate is also subsidised by the government and is usually 0.25% lower than the prevailing rate of the bank. The repayment period is up to 7 years.

Some of the benefits of the Stree Shakti Yojana are:

  • It provides easy and affordable access to finance for women entrepreneurs.
  • It offers training and guidance to women entrepreneurs on various aspects of entrepreneurship.
  • It helps women entrepreneurs to start or expand their small-scale enterprises and create wealth and employment.
  • It enhances the skills and knowledge of women entrepreneurs and improves their competitiveness.

Some of the examples of businesses or sectors that can benefit from the Stree Shakti Yojana are:

  • Manufacturing: Women entrepreneurs can use the loan amount to buy raw materials, machinery, equipment, etc. for their manufacturing activities.
  • Retail: Women entrepreneurs can use the loan amount to buy inventory, furniture, fixtures, etc. for their retail activities.
  • Education: Women entrepreneurs can use the loan amount to buy books, stationery, computers, etc. for their education activities.
  • Housing: Women entrepreneurs can use the loan amount to buy land, building materials, labour, etc. for their housing activities.

Mahila Udyam Nidhi Yojana

Business Loan For Women

The Mahila Udyam Nidhi Yojana is a government scheme that provides soft loans to women entrepreneurs for setting up new small-scale ventures. The scheme is implemented by the Small Industries Development Bank of India (SIDBI) through its branches and intermediaries.

The Mahila Udyam Nidhi Yojana aims to provide financial assistance to women entrepreneurs who want to set up new ventures in various sectors such as beauty parlours, crèches, tailoring units, etc. The scheme also provides margin money assistance to women entrepreneurs who want to avail loans from banks or other financial institutions.

The eligibility criteria for the Mahila Udyam Nidhi Yojana are as follows:

  • The applicant should be a woman aged above 18 years.
  • The applicant should have a viable business plan or project proposal.
  • The applicant should have a minimum of 51% ownership in the venture.

The loan amount under the Mahila Udyam Nidhi Yojana varies from sector to sector, but it generally ranges from Rs. 25,000 to Rs. 10 lakh. The interest rate is also subsidised by the government and is usually around 6% per annum. The repayment period is up to 10 years.

Some of the benefits of the Mahila Udyam Nidhi Yojana are:

  • It provides easy and flexible access to finance for women entrepreneurs.
  • It offers margin money assistance to women entrepreneurs who want to avail loans from banks or other financial institutions.
  • It helps women entrepreneurs to set up new ventures in various sectors and generate income and employment.
  • It enhances the entrepreneurial spirit and innovation of women entrepreneurs.

Some of the examples of businesses or sectors that can benefit from the Mahila Udyam Nidhi Yojana are:

  • Beauty Parlours: Women entrepreneurs can use the loan amount to buy cosmetics, equipment, furniture, etc. for their beauty parlours.
  • Crèches: Women entrepreneurs can use the loan amount to buy toys, books, furniture, etc. for their crèches.
  • Tailoring Units: Women entrepreneurs can use the loan amount to buy fabrics, machines, accessories, etc. for their tailoring units.
  • Catering Services: Women entrepreneurs can use the loan amount to buy utensils, appliances, ingredients, etc. for their catering services.

Mudra Loan for Women

The Mudra Loan for Women is a government scheme that provides collateral-free loans to women entrepreneurs for micro and small enterprises under the Pradhan Mantri Mudra Yojana (PMMY). The scheme is implemented by various banks and non-banking financial companies (NBFCs) through their branches and outlets.

The Mudra Loan for Women aims to provide financial assistance to women entrepreneurs who want to start or expand their micro and small enterprises in various sectors such as agriculture, trade, services, manufacturing, etc. The scheme also provides credit guarantee cover and insurance cover to women entrepreneurs who avail loans under it.

The eligibility criteria for the Mudra Loan for Women are as follows:

  • The applicant should be a woman aged above 18 years.
  • The applicant should have a viable business plan or project proposal.
  • The applicant should have a minimum of 50% ownership in the enterprise.

The loan amount under the Mudra Loan for Women depends on the stage and size of the enterprise, but it generally falls under three categories:

  • Shishu: Loans up to Rs. 50,000 (small business loan for women) for enterprises that are in the initial stage or have just started.
  • Kishor: Loans from Rs. 50,001 to Rs. 5 lakh for enterprises that are in the growth stage or have been established.
  • Tarun: Loans from Rs. 5 lakh to Rs. 10 lakh for enterprises that are in the expansion stage or have achieved some scale.

The interest rate under the Mudra

Loan for Women is determined by the lender, but it is usually lower than the market rate. The repayment period is up to 5 years.

Some of the benefits of the Mudra Loan for Women are:

  • It provides collateral-free loans to women entrepreneurs for micro and small enterprises.
  • It offers credit guarantee cover and insurance cover to women entrepreneurs who avail loans under it.
  • It helps women entrepreneurs to start or expand their micro and small enterprises in various sectors and generate income and employment.
  • It enhances the financial inclusion and empowerment of women entrepreneurs.
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Some of the examples of businesses or sectors that can benefit from the Mudra Loan for Women are:

  • Agriculture: Women entrepreneurs can use the loan amount to buy seeds, fertilizers, pesticides, tools, machinery, etc. for their agricultural activities.
  • Trade: Women entrepreneurs can use the loan amount to buy inventory, goods, equipment, etc. for their trading activities.
  • Services: Women entrepreneurs can use the loan amount to buy computers, software, furniture, etc. for their service activities.
  • Manufacturing: Women entrepreneurs can use the loan amount to buy raw materials, machinery, equipment, etc. for their manufacturing activities.

ICICI Bank – Self Help Group-Bank Linkage Programme (SBLP)

Business Loan For Women

The ICICI Bank – Self Help Group-Bank Linkage Programme (SBLP) is a bank scheme that delivers financial products and services to rural women who lack access to formal banking through Self Help Groups (SHGs). The scheme is implemented by ICICI Bank through its rural branches and partner organisations.

The ICICI Bank – Self Help Group-Bank Linkage Programme (SBLP) aims to provide financial assistance to rural women who want to start or expand their income-generating activities through SHGs. The scheme also provides training and capacity building to rural women on various aspects of SHG management, financial literacy, entrepreneurship, etc.

The eligibility criteria for the ICICI Bank – Self Help Group-Bank Linkage Programme (SBLP) are as follows:

  • The applicant should be a woman aged above 18 years.
  • The applicant should be a member of a SHG that has been in existence for at least six months and has a regular savings and credit history.
  • The applicant should have a viable business plan or project proposal.
  • The applicant should have a minimum of 10% contribution in the project cost.

The loan amount under the ICICI Bank – Self Help Group-Bank Linkage Programme (SBLP) depends on the size and performance of the SHG, but it generally ranges from Rs. 50,000 to Rs. 5 lakh. The interest rate is determined by the bank, but it is usually competitive and affordable. The repayment period is up to 3 years.

Some of the benefits of the ICICI Bank – Self Help Group-Bank Linkage Programme (SBLP) are:

  • It provides easy and convenient access to finance for rural women through SHGs.
  • It offers training and capacity building to rural women on various aspects of SHG management, financial literacy, entrepreneurship, etc.
  • It helps rural women to start or expand their income-generating activities and improve their livelihoods.
  • It enhances the social and economic empowerment of rural women.

Some of the examples of businesses or sectors that can benefit from the ICICI Bank – Self Help Group-Bank Linkage Programme (SBLP) are:

  • Dairy Farming: Rural women can use the loan amount to buy cows, buffaloes, feed, medicines, equipment, etc. for their dairy farming activities.
  • Poultry Farming: Rural women can use the loan amount to buy chicks, feed, medicines, equipment, etc. for their poultry farming activities.
  • Vegetable Cultivation: Rural women can use the loan amount to buy seeds, fertilizers, pesticides, tools, machinery, etc. for their vegetable cultivation activities.
  • Tailoring Units: Rural women can use the loan amount to buy fabrics, machines, accessories, etc. for their tailoring units.

Dena Shakti Scheme

Business Loan For Women

The Dena Shakti Scheme is a bank scheme that provides loans to women entrepreneurs for various sectors such as agriculture, manufacturing, retail, education, housing, etc. The scheme is implemented by Dena Bank through its branches and outlets.

The Dena Shakti Scheme aims to provide financial assistance to women entrepreneurs who want to start or expand their enterprises in various sectors. The scheme also provides concessional interest rates and margin money assistance to women entrepreneurs who avail loans under it.

The eligibility criteria for the Dena Shakti Scheme are as follows:

  • The applicant should be a woman aged above 18 years.
  • The applicant should have a viable business plan or project proposal.
  • The applicant should have a minimum of 51% ownership in the enterprise.

The loan amount under the Dena Shakti Scheme depends on the nature and size of the enterprise , but it generally ranges from Rs. 1 lakh to Rs. 20 lakh. The interest rate is also subsidised by the bank and is usually 0.25% lower than the prevailing rate of the bank. The repayment period is up to 7 years.

Some of the benefits of the Dena Shakti Scheme are:

  • It provides loans to women entrepreneurs for various sectors such as agriculture, manufacturing, retail, education, housing, etc.
  • It offers concessional interest rates and margin money assistance to women entrepreneurs who avail loans under it.
  • It helps women entrepreneurs to start or expand their enterprises in various sectors and create wealth and employment.
  • It enhances the diversity and innovation of women entrepreneurs and improves their competitiveness.

Some of the examples of businesses or sectors that can benefit from the Dena Shakti Scheme are:

  • Agriculture: Women entrepreneurs can use the loan amount to buy seeds, fertilizers, pesticides, tools, machinery, etc. for their agricultural activities.
  • Manufacturing: Women entrepreneurs can use the loan amount to buy raw materials, machinery, equipment, etc. for their manufacturing activities.
  • Retail: Women entrepreneurs can use the loan amount to buy inventory, goods, equipment, etc. for their retail activities.
  • Education: Women entrepreneurs can use the loan amount to buy books, stationery, computers, etc. for their education activities.
  • Housing: Women entrepreneurs can use the loan amount to buy land, building materials, labour, etc. for their housing activities.

Cent Kalyani Scheme

Business Loan For Women

The Cent Kalyani Scheme is a bank scheme that provides loans to women entrepreneurs for setting up new or expanding existing micro and small enterprises. The scheme is implemented by Central Bank of India through its branches and outlets.

The Cent Kalyani Scheme aims to provide financial assistance to women entrepreneurs who want to set up new or expand existing micro and small enterprises in various sectors such as agriculture, industry, services, etc. The scheme also provides collateral-free loans and no processing charges to women entrepreneurs who avail loans under it.

The eligibility criteria for the Cent Kalyani Scheme are as follows:

  • The applicant should be a woman aged above 18 years.
  • The applicant should have a viable business plan or project proposal.
  • The applicant should have a minimum of 51% ownership in the enterprise.

The loan amount under the Cent Kalyani Scheme depends on the nature and size of the enterprise, but it generally ranges from Rs. 1 lakh to Rs. 100 lakh. The interest rate is determined by the bank, but it is usually competitive and reasonable. The repayment period is up to 7 years.

Some of the benefits of the Cent Kalyani Scheme are:

  • It provides loans to women entrepreneurs for setting up new or expanding existing micro and small enterprises in various sectors such as agriculture, industry, services, etc.
  • It offers collateral-free loans and no processing charges to women entrepreneurs who avail loans under it.
  • It helps women entrepreneurs to set up new or expand existing micro and small enterprises and generate income and employment.
  • It enhances the entrepreneurial potential and growth of women entrepreneurs.

Some of the examples of businesses or sectors that can benefit from the Cent Kalyani Scheme are:

  • Agriculture: Women entrepreneurs can use the loan amount to buy seeds, fertilizers, pesticides, tools, machinery, etc. for their agricultural activities.
  • Industry: Women entrepreneurs can use the loan amount to buy raw materials, machinery, equipment, etc. for their industrial activities.
  • Services: Women entrepreneurs can use the loan amount to buy computers, software, furniture, etc. for their service activities.

Conclusion

In this article, we have explored 7 best business loan for women in India that you can apply for and avail the benefits. These schemes are designed to empower women entrepreneurs and promote their economic and social development.

Business loans for women in India offer many advantages such as low-interest rates, flexible repayment options, training and guidance, credit guarantee cover, insurance cover, margin money assistance, collateral-free loans, no processing charges, etc.

These schemes help women entrepreneurs to start or expand their businesses in various sectors such as agriculture, animal husbandry, fisheries,

handicrafts, handlooms, beauty parlours, crèches, tailoring units, catering services, dairy farming, poultry farming, vegetable cultivation, manufacturing, retail, education, housing, etc.

These schemes also enhance the self-confidence and empowerment of women entrepreneurs and improve their skills and knowledge.

We hope this article has helped you to understand the 7 best business loan for women in India and how to apply for them.

FAQs

What is a business loan for women in India?

A business loan for women in India is a type of financing that can help women entrepreneurs to start or grow their own businesses. There are many schemes and programs in India that offer business loans for women at attractive terms and conditions. These schemes are designed to empower women entrepreneurs and promote their economic and social development.

What are the benefits of business loan for women in India?

Business loan for women in India offer many advantages such as low-interest rates, flexible repayment options, training and guidance, credit guarantee cover, insurance cover, margin money assistance, collateral-free loans, no processing charges, etc. These schemes help women entrepreneurs to start or expand their businesses in various sectors and generate income and employment.

What are the eligibility criteria for business loan for women in India?

The eligibility criteria for business loan for women in India vary from scheme to scheme, but some of the common criteria are:
The applicant should be a woman aged above 18 years.
The applicant should have a viable business plan or project proposal.
The applicant should have a minimum of 50% or 51% ownership in the enterprise.

How long does it take to get a business loan for women in India?

The time taken to get a business loan for women in India depends on various factors such as the scheme, the lender, the amount, the verification process, etc. Generally, it can take anywhere from a few days to a few weeks to get a business loan for women in India.

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