Business Loans – Gone are the times wherever women roles were limited to the house. currently a day you’ll find women competing with men in each sphere of life as well as entrepreneurship. the largest challenge for women entrepreneur is to source the fund for business. However, there are several financial institutions and a bank that support women entrepreneurs by providing a business loan at concessional rates. If you’re women entrepreneur and looking for a business loan here are six attractive business loan options for the women entrepreneurs.
6 Attractive Business Loans for Women Entrepreneurs
- Cent Kalyani is a business loan provided by Central Bank of India to the female entrepreneurs.
- This scheme is introduced to encourage women entrepreneurs to start a new business or to expand existing once.
- This business loan can be taken by female entrepreneurs engage in manufacturing activity like handicraft, food-processing.
- This loan can also be taken by professional and self-employed women like a doctor, CA, engineer, dieticians, fashion designer etc.
- Small business owners like a tailor, STD, Xerox, small food business can also take this loan.
Name of Lender – Central Bank of India
Interest rate – Loan up to 10 Lakh – MCLR + 0.25% Loan above 10 Lakh and up to 1 Cr – MCLR + 0.50% Additional Interest concession of 0.25% if account is rated by external agency.
Loan Limit – 1 Cr. Get more information about Cent Kalyani Scheme on Central Bank of India site.
- Dena Shakti is a business loan provided by Dena bank for the female entrepreneurs.
- The loan under this scheme is provided for small enterprises doing manufacturing, sales and service business.
- This loan can also be extended for retail trade, housing, and education enterprises.
Name of Lender – Dena Bank
Interest rate – 25 basis point less than applicable interest rates.
Loan Limit – 20 Lakh
- Annapurna is special Business loan scheme for the food business. This loan is provided by Bhartiya Mahila Bank.
- This loan is given only for food catering, selling tiffin or lunch pack business.
- Loan repayment term for Annapurna Scheme is 3 years.
Name of Lender – Bhartiya Mahila Bank
Interest rate – As per Mudra Loan
SIDBI Mahila Udyam Nidhi
- SIDBI Mahila Udyam Nidhi is a specialized scheme to provide initial capital for setting up business.
- This business loan can also be availed for expansion, diversification, modernisation, technology upgradation, quality improvement, rehabilitation of existing tiny units.
Name of Lender – SIDBI
Interest rate – 9% to 10.5%
Loan Limit – 2.5 Lakh
- Udyogini is business loan scheme provided by Punjab and Sind Bank for female entrepreneur.
- You can apply for a loan as Udyogini for direct agriculture activities, Tiny SSI, retrial traders, business enterprises, professional and self-employed.
- The loan limit is decided on a case to case basis and depends on type and purpose of a loan.
Name of Lender – Punjab and Sind Bank
Interest rate – As per applicable rate to MSME
Loan Limit – Above Rs. 25,000
Stree Shakti Package
- Stree Shakti Package is for women entrepreneur who holds 50% ownership in small business.
- No security is required to avail this loan up to 5 Lakh in case of tiny sector units.
- In case loan value exceed Rs. 2 Lakh discount of 0.5% is given for Stree Shakti Package.
Name of Lender – State Bank of India
Interest rate – 0.5% less from applicable rates
Loan Limit – 25 Lakh
For more information about Stree Shakti Package here.
Apart from above women entrepreneurs can also raise capital via following options.
- Normal Business Loan
- Personal Loan
- Gold Loan
- Peer 2 Peer Lending Platform
- Family and Friends
Following documents are required to apply for a business loan.
- PAN Card
- ID Proof and Address Proof
- Passport size photos
- Income Tax Return and Profit & Loss Statement
- Age between 18 years to 55 years
- Proper documentation and project plan
- Proof or lower income or No Income
Points to consider before taking business loans –
- Applicable Interest rate
- Processing Fees and prepayment charges
- Late payment fees
- Processing time
- Collateral required
- Repayment options
What is your opinion about women empowerment and business loan options for women?