India is a land of many opportunities, a clear reflection of which is the startup boom that the country has witnessed over the past decade. From food, beauty, travel, sanitation, IT, automotive, entertainment and even innovation, a new generation of emerging entrepreneurs have successfully tapped less explored sectors. , succeeded in providing solutions and laying the foundations for successful businesses. Today we list down some schemes introduced by financial institutions in India, including nationalised banks, that all women entrepreneurs need to be aware of:
Mahila Udyam Nidhi Scheme
This program is launched by the Punjab National Bank and aims to support women entrepreneurs involved in small industries by granting them loans on favorable terms repayable over a period of 10 years. Under this program there are different plans for beauty salons, day care centers, purchase of rickshaws, two-wheelers, cars, etc., the maximum amount granted under this program is of 10 lakhs and the interest depends on the market rates.
As part of this program, the Indian government is offering loans of up to Rs. 50,000 to women entrepreneurs in the food service industry. The loaned amount could be used for working capital needs such as the purchase of utensils, cutlery, gas connection, refrigerator, mixer sperm grinder, heating case, utensil rack, tiffin boxes, worktables, water filters, etc. A guarantor is required to avail the loan and the assets of the business must be given as collateral. Once sanctioned, it must be repaid in 36 monthly installments (which is equivalent to a period of three years). After the loan is sanctioned, the lender does not have to pay the IME for the first month. The interest rate is determined according to the market rate and the bank concerned. The State Bank of Mysore and Bharatiya Mahila Bank currently offer this program.
Bharatiya Mahila Bank Business loan
This loan is a support system for budding women entrepreneurs looking to start new businesses in the areas of retail, property loans, MICRO loans and SME loans. The maximum loan amount under this loan is up to Rs. 20 crore in the case of manufacturing industries and a concession is also available to the extent of 0.25% on interest rate and interest rates vary generally 10.15% and more. In addition, under the Micro and Small Business Credit Guarantee Fund (CGTMSE), there is no collateral collateral requirement for a loan up to Rs. 1 crore.
Stree Shakti Package for Women Entrepreneurs
The Stree Shakti Package is a unique program run by SBI to support entrepreneurship among women by offering certain concessions. This program is eligible for women who have a controlling stake (more than 50 percent) in a small business. Another condition is that these entrepreneurs must be enrolled in the Entrepreneurship Development Programs (EDP) organized by their respective public agency. This program enables women to benefit from an interest concession of 0.05% on loans exceeding 2 lakh. No collateral is required for loans up to 5 lakh in the case of tiny sector units.
This scheme is offered by Punjab and Sind Bank so as to provide women entrepreneurs involved in Agriculture, retail and small business enterprises to get loans for business at flexible terms and concessional interest rates. The maximum amount of loan under this scheme for women between the age bracket of 18-45 years is ₹1 lakhs but your family income is also taken into consideration and is set at ₹45,000 per annum for SC/ST women.