Women entrepreneurs today are making a difference in society, and are emerging as world-class businesswomen with their contributions. Not only the banks but many NBFCs and also the Government of India is coming up forward to help women entrepreneurs by launching and introducing business loan for women. Without the contribution from women, we can’t even imagine a great India.
In a society like India, women have been struggling so hard to first break the obstacles of the prejudiced minds and practices that have been followed for ages, and the removal of which has enabled them with confidence to become self-dependent and self-reliant which further helps them in contributing towards the growth and prosperity of the Indian economy.
In the initial phase, there were major obstacles and difficulties in achieving her business dream which was:
- Lack of social support – Male dominant society that consisted of husband, brother, and fathers did not really allow women to start their own business venture and their lack of trust in the women did not let women live their dream, and they ultimately had to give up.
- Lack of collateral support – Women have very fewer securities in their personal name and if by chance there is property in the name of the family then also she has to rely on her father or brother or husband to provide collateral security or a guarantee of her loan application.
- Limited financial knowledge – Lack of proper financial knowledge & education hindered women entrepreneurs in order to get appropriate financial assistance which is required for running their business.
- Lack of confidence to approach financial institutions for a business loan – Some of the women lack self-confidence and are not really bold enough to gather courage and approach the financial institutions to get an MSME loan, even when their business ideas are quite unique.
Nevertheless, as more & more women are getting literate, they have started understanding the fact that the business environment and proper education and knowledge have helped them to seek financial aid like MSME loans from various sources.
Having said this, there has been a couple of schemes that have been launched by banks & other financial institutions, and even the Government of India to support women entrepreneurs with financial aid:
Pradhan Mantri Mudra Yojana Scheme (PMMY)
PMMY scheme can be availed by women entrepreneurs for doing business in India. Women get a business loan up to Rs 50 lakh under Shishu, Kishore & Tarun scheme. One very important feature of the pradhan Mantri business loan scheme is that there is no need of any collateral or guarantee that is required for a loan up to 10 lakhs.
Orient Mahila Vikas Yojana Scheme by Oriental Bank of Commerce
Mahila Vikas Yojana loan is given to the women, who hold the majority of the share capital ( which means at least 51%) in a proprietary. The important features of it include:
- No collateral (guarantee) as a security for the loan in the range of Rs 10 lakhs to Rs 25 lakhs for small scale industries
- The repayment period of Mahila Vikas Yojana loan is 7 yrs
- Concession of 2% on interest rate
Women Loans through Zip loan (RBI registered NBFC)
Zip loan – one of the leading NBFC offers business loans without collateral to the businesswomen. The important features of which include the following :
- Business loan without any collateral of up to 5 lakhs
- Repayment Tenure being flexible enough that ranges from 6 months to 24 months
- The business loan is disbursed within 3 days
- Very minimal documentation required to avail a business loan, which is limited to (KYC, Bank Statement and ITR)
- No prepayment penalty is been charged
- A business loan is offered at a competitive interest rate
Due to the availability of Women business loan schemes, now even females can also step forward and turn their dream come true by becoming a successful women entrepreneur.
Shakti Scheme by Dena Bank
Women who belong to various fields like agriculture & allied activities, manufacturing, retail stores, micro-credit unit, small enterprises, etc. can benefit from this scheme.
- Under this scheme, business loans for women of up to 20 lakhs is been provided, but the maximum limit is offered post understanding the nature and the type of the business.
- Also, under this scheme, they also provide a concession of 0.25% on the rate of interest. Business loans of up to Rs 50,000 is been offered to the women entrepreneurs who are indulged in the micro-credit unit.
Stree Shakti Package by State Bank of India
Stree Shakti package is a unique scheme that provides concession to women entrepreneurs. The important features are:
- Women should have the majority of the ownership in small business (which is above 50% stake)
- Women entrepreneurs have to be registered in the Entrepreneurship Development Programme as organized by the respective state agency
- Women entrepreneurs can avail of a concession of 0.05% on the business loan exceeding Rs 2 lakhs
- No collateral security is required for the business loan of up to Rs 5 lakhs
- The business loan interest rate charged is less than the bank base rate
Frequently Asked Questions
- How do women entrepreneurs get a business loan?
Women entrepreneurs can get a business loan from NBFC like Zip loan as well as from the mudra loan scheme.
- How to apply for a business loan?
To apply for a business loan, you first need to fill up the loan application that requires your personal, business, and financial information. 2) As a next step, you need to submit the required documents 3) Once this is done, you get money directly into your bank account within three working days*.
3.Do I have to provide any security to avail business loan?
No, at Zip loan, as businesswomen, you can get a business loan for women without collateral. Therefore, you don’t need to deposit any kind of security.
4.Which are some other financing options for women business entrepreneur?
Businesswomen can also avail of a business loan from the mudra loan scheme and yogini scheme.