The year 2019 can be easily called the year of women empowerment.
Right from successful and famous businesswomen to a small shop owner near your home, India has found its solace in women entrepreneurs.
According to the sixth economic census released by the Ministry of Statistics and Program Implementation, women constitute around 14% of the total entrepreneurship.
India has ranked first in a recent Global Entrepreneurialism Report conducted by international bank BNP Paribas and has also topped the list of countries with the highest percentage of successful women entrepreneurs. We also did better than France and Hong Kong.
About 69% of women entrepreneurs in India start up a business in sectors such as retail, finance, real estate, technology, and fashion.
This improved picture of women entrepreneurship has been possible due to the readily available microfinancing facility provided by different banks and financial institutes.
Micro Financing is a particular category of business financing scheme which finances small businesses at a lower rate of interest.
The benefits of microfinancing for women entrepreneur are:
• Easy to apply
• No collateral required
• Lower rate of interest
• No guarantee required
• Exclusively supports women entrepreneurs
The government has been encouraging women to invest in micro and small size business and have supported them with especially available funding options.
Let us explore all the different micro-financing facilities available for women entrepreneurs:
Stree Shakti Scheme: This scheme is for women who have ownership of 50 % in a small business. You can avail loan up to 25 lakhs. There is no collateral needed if your loan amount is less than INR 10 lakhs. Apart from business women, chartered accountants, beauticians, doctors and architects are also eligible for this loan.
Eligibility: To be eligible for this scheme, the applicant should pursue the entrepreneurship Development Program organized by the state agency.
Cent kalyani Scheme: This is an initiative by Central Bank of India with an aim to provide finance to women entrepreneurs of India. This loan is to help them to gain aid for any employment opportunity or even start a new project or expand the existing projects. The maximum loan you can obtain is Rs 100 lakh. The rate of interest is 9.70%
Eligibility: Any woman running a business such as Business-Small lunch/canteen, Beauty clinics, Beauty Parlors, mobile restaurant, Day Crèche’s for children, Tailoring or boutiques also are eligible.
Dena Shakti Scheme: This one is another financial scheme to promote businesses owned by women. This can be availed at 0.25% interest concession. The maximum limits will be as per the RBI guidelines. It is normally up to 20lakhs for retails, trade. Under the micro-credits plan, you can avail up to INR 50,000.
Eligibility: Women who wants to start a business in the manufacturing or agriculture business are eligible for this scheme.
Mudra Yojna: This scheme was launched by the government of India to encourage more women to start businesses. This loan can be applied for by a group of women starting a business or even a single woman. This loan scheme is operated by the government in collaboration with different banks.
There are three major categories under this scheme:
• Shishu Scheme: This is for new businesses, which just started. They can avail up to INR 50,000
• Kishore Scheme: This scheme is for already existing businesses. The loan amount varies between INR 50,000 to INR 5 lakhs.
• Tarun Scheme: If any of the established businesses want to take loan for expanding their operations then this is the apt scheme. This loan can go up to a maximum of INR 10 Lakhs.
Eligibility: Any woman or group of women starting a business can apply. This loan does not require any collateral and once it is approved, you will be provided a Mudra card out of which you can withdraw 10% of the amount.
Udyogini Scheme: This scheme is offered by Punjab and Sind bank. The aim of this scheme is to provide loans easily at simple terms to women entrepreneurs. This covers women in agriculture, micro businesses retail and employed women.
Eligibility: Women who own at least 51% or more in business can be provided with this loan. There is no margin money up to Rs. 25000. Also, no collateral is required for loans up to Rs. 25000.There is no processing fee for the loan.
In order to apply for any of the loan, you can easily reach the respective bank’s branch website.
We hope that you found this article useful. Now that you are aware about these easily approachable schemes, you can easily enhance your business by applying for the one that suits your requirements.