In this article we are providing a detailed information on “Top Business Loan Schemes for Women Entrepreneurs”. Lets take a look at most popular loan schemes for the women entrepreneurs in the India as per competitive and concessional interest rates.
Cent Kalyani from Central Bank of India
Do you want to open a new business?
Do you want to expand or alter current one?
For those who wants a new business or to expand the current one, now the Central Bank of India offers, business and startup loans for the women entrepreneurs with concessional interest rates.
1.Interest Rate: 7.70%-7.95% p.a.
2. Nature of Loan: Term Loan fund-based working capital facility – Overdraft/ Cash Credit non fund-based working capital – Letter of Credit/ Letter of Guarantee, etc.
3. Loan Amount: Upto Rs. 100 lakhs
4. Processing Fee: Nil
5. Purpose: To meet day-to-day requirements, such as purchase of plant & machinery/equipment etc., and the working capital expenditure.
6. CGTMSE Coverage: Available
7. Processing Fee: Nil
8. Insurance: The Comprehensive insurance of stock, machinery/equipment, etc with bank clause
9. Collateral/Security or Third Party Guarantee is not required
10. Women entrepreneurs who are rendering the services to rural and cottage industries, MSMEs and retailing, women working in farming and the government backed firms will be able to avail the business loan.
Note: With effect from 10th July 2022, the Bank’s 1 year MCLR stands at 7.45%.
Mudra Loan under PMMY
MUDRA Loan under the Pradhan Mantri Mudra Yojana (PMMY) is a loan scheme for individuals, business owners, startups, as well as for the women entrepreneurs that offered by banks across the India. This Scheme was launched in 2015. Under this scheme, the loan amount is upto Rs. 10 lakhs is offered to the women those who want to start their own business or to expand their existing one. This loan amount is offered under 3 categories, named as Shishu, Kishor and Tarun.
1.Concessional Interest Rates for the Women Entrepreneurs.
2. No collateral or security is required by the banks or NBFCs
3. Loan Type is Term Loan/ Overdraft
4. There are three loan categories: Shishu, Kishor, and Tarun.
5. Loan Amount is maximum upto 10 lakh.
6. Repayment Tenure is upto 5 years.
7. Processing fee is Nil to 0.50% of sanctioned loan amount.
8. Loans for the Women living in both Urban and Rural regions of the India.
To encourage the women entrepreneurs and to promote MSME sector.
ICICI-SHG Bank Linkage Pragramme (SBLP)
ICICI Bank has been recently introduced Collateral-free business loans for the self help group (SHG) of 10-20 women. Maximum loan amount that offered under this scheme Rs. 10 lakh with the repayment tenure of upto 3 years.
This Scheme is a loan Scheme initiated by Govt. to offer the credit facilities for setting up the Greenfield Enterprise for the loan amount of the Rs. 10 lakh to 1 crore. 7 Years is the maximum repayment tenure with the moratorium period of 18 months.
Features of Small Business Loans for Women
- Interest Rate: Discounted or Cocessional interest rates for the women barrowers that will vary from bank to bank.
- Loan Amount: Maximum upto 10 lakhs, may exceed
- Repayment Tenure is from 12 months to 5 Years.
- Collateral/Security or Third Party Guarantee is Not Required.
- Loan Type: Term Loan (short term or long term), Unsecured Loan, Working Capital Loan, Overdraft
- Min. 18 years and Max. 65 years
- Individuals, Sole Proprietorship, Limited Liability Partnerships (LLPs), MSMEs, Partnership Firms, manufacturing, engaged in trading and services sector are eligible.
- Applicants with no past loan defaults will be considered.
Required Documents for Loan Application
1.Duly filled application form along with 2 passport size photos.
2. Identity proof: Voter ID Card, Driving License, Passport, Pan Card, Aadhaar card, etc.
3. Self-Written Business plan
4. Address Proof: Aadhar card, Voter ID Card, Passport, Utility Bills.
5. Income Proof: Last six month’s bank statement, Salary slips, Bank statement.
6. Business Incorporation Certificate
7. Any other document that required by lender.