Business Loan for Women Entrepreneurs in India
These business loans tailored for women have become a stepping stone to their success. By offering attractive rates, flexible terms, and often relaxed collateral requirements, these loans help turn
After decades of persevering against stereotypes, women have risen as highly successful entrepreneurs within the Indian startup ecosystem. As they begin to play an active role in running business organizations, the government has introduced specialized business loan options for female entrepreneurs.
These business loans tailored for women have become a stepping stone to their success. By offering attractive rates, flexible terms, and often relaxed collateral requirements, these loans help turn ambitious dreams into real achievements by providing the necessary financial support.
Following are some of the most coveted startup business loans for women in business and their benefits:
1. SMFG India Credit Fullerton India Business Loan for Women
Being driven and ambitious is often not enough to start a business. If finances are holding you back, SMFG India Credit's Business Loan for Women can be a great option for aspiring female entrepreneurs.
This loan offers attractive interest rates that complement your loan amount, along with easy repayment terms. There might be a processing fee, but it's capped at a manageable percentage of the loan amount. You can choose a flexible repayment plan that fits your business cash flow, typically ranging from 1 to 4 years. If you manage to pay back early, any prepayment charges will be minimal.
Eligibility and Features of the SMFC India Credit:
Eligibility: If you're a self-employed woman running a manufacturing, trading, or service business for at least 3 years (with a total of 5 years' business experience), you might be eligible. Your business should also have a minimum turnover of ₹10 lakhs and show profits for the past 2 years.
Loan amount: SMFG India Credit offers unsecured loans ranging from ₹50,000 to ₹75 lakhs to help you take your venture to the next level.
Debt financing can help you invest in additional inventory, hire new staff, or open a new branch. You may even upgrade equipment or software to streamline operations. As you diversify your offerings to adapt to market changes, you will have enough funds to meet the growing production demands and manage day-to-day expenses.
2. Tata Capital Business Loan for Women
As more women step into the entrepreneurial world with their one-of-a-kind business ideas, Tata Capital Business Loan for Women can help provide the financial assistance they need.
Features of the Tata Capital Business Loan for Women:
Loan Amount: Ranging from Rs 0.40 Lac to Rs. 90 lakhs, this startup business loan for women ensures that you have the capital necessary to meet your business requirements, whether it's a small-scale venture or a larger enterprise.
Loan Tenure: It offers flexible repayment tenures spanning from 12 to 60 months, giving you the freedom to plan and pursue your business goals without added stress.
Interest Rates: Worried about interest rates? Don't be. Their interest rates are competitive and vary based on your professional status, ensuring that you get the best deal possible.
Customized Product Offerings: Since every business is unique, they have customized product offerings tailored to your specific needs.
Zero Collateral Requirements: With zero collateral requirements, you can secure your loan without pledging any assets.
One of the best things about the TATA Capital Business Loan for Women is that their eligibility criteria are quite straightforward, and the application process is equally hassle-free.
3. Cent Kalyani from the Central Bank of India
Cent Kalyani, offered by the Central Bank of India, is a special business loan designed to empower women entrepreneurs across India. The aim is simple: to encourage and support women in starting new ventures or expanding their existing ones. Regardless of your company's industry—manufacturing, services, or medicine—the Cent Kalyani Loan can be helpful.
Features and Eligibility of the Cent Kalyani Loan for Women:
Maximum Finance Quantum: Cent Kalyani offers a maximum finance quantum of Rs. 100 Lacs, empowering women with substantial capital to invest in their businesses.
Margin Requirement: With a margin requirement of just 20%, this loan facilitates investment in plant & machinery, equipment, and day-to-day expenses, ensuring financial stability.
Loan Facilities: The loan facility includes both term loans and various working capital options like overdrafts and cash credits, providing flexibility in managing business finances effectively.
Competitive Interest Rates: Cent Kalyani also comes with low-interest rates with concessions based on the loan amount and external rating, making it affordable for women entrepreneurs.
No Collateral Security: No collateral security is required, making the loan accessible without additional financial burdens.
Comprehensive Insurance Coverage: The loan includes comprehensive insurance coverage for stock, machinery, and equipment, ensuring business assets are protected against unforeseen events.
Accessing Cent Kalyani is simple, with no processing fees charged, streamlining the loan application process.
4. PNB Mahila Udyami
PNB Mahila Udyami is a business loan designed specifically to support Indian women entrepreneurs as they build their businesses and generate income independently. This loan aims to assist women in starting new businesses or growing their current ones, with a focus on manufacturing, services, trading, and small businesses.
Features and Eligibility of the PNB Mahila Udyami Loan:
Eligibility: Any individual woman or women-led enterprise can apply, with preference given to those belonging to marginalized communities or who have received training from skill development institutions.
Financial Support: The loan amount is capped at Rs. 10,00,000, aimed at funding the acquisition of fixed assets like plant & machinery, equipment, and furniture, along with providing working capital for day-to-day business needs. Both term loans and overdraft facilities are available.
Perks: Repayment terms for term loans range from 3 to 5 years, with a maximum moratorium period of 3 to 6 months, depending on the type of activity and income generation. Overdraft limits are sanctioned for three years, with annual reviews and renewal every three years. Personal security of the borrower or assets created with bank finance is required.
PNB Mahila Udyami is designed to finance new ventures or the modernization of existing ones. With its flexible terms, supportive approach, and focus on empowerment, it’s one of the most sought-after business loan options.
5. Mudra Loan under PMMY
The Pradhan Mantri Mudra Yojana (PMMY) is one of the most popular startup business financing options available in the country. Having been introduced in 2015, this scheme extends to Indian entrepreneurs of all genders. Mudra Loans for women come under this scheme, aiming to provide financial support and encouragement to women entrepreneurs across India.
Features of the Mudra Loan:
Types of Mudra Loans: Mudra Loans are categorized into Shishu, Kishor, and Tarun, catering to entrepreneurs at different stages of business growth. Shishu offers loans up to Rs. 50,000 for budding businesses, Kishor provides Rs. 50,000 to Rs. 5 lakh for expansion, and Tarun extends from Rs. 5 lakh to Rs. 10 lakh for established enterprises.
Features and Benefits: Mudra Loans offer several advantages, including no requirement for collateral or security, low-interest rates, and flexibility in usage for various business needs such as working capital, machinery, or expansion. They can be obtained from a range of financial institutions, including public-sector banks, private-sector banks, and microfinance institutions.
Mudra Loan Eligibility for Women: Women entrepreneurs are encouraged to apply for Mudra Loans, provided they are Indian citizens, of legal age, and engaged in sectors like manufacturing, trading, or services.
Like any other loan, when you apply for the Mudra Loans, they conduct a thorough background check and asses your organization through a financial due diligence. Thus, having a solid business plan is crucial for securing Mudra financing.
Conclusion
As we've explored, these business loans for ladies from the government not only provide the necessary capital to start a business but also come with feasible repayment terms and exclusive interest rates. No matter if it's a small home-based venture or a large-scale enterprise, there are loans available to suit every entrepreneurial journey.
The support through loans doesn't end with financial assistance. Many loan programs offer guidance and resources to help women understand and venture into the idea of starting and running a business. This help includes everything from mentorship programs to networking opportunities, all aiming to encourage women entrepreneurs to persevere.
With these small business loans for women, limited resources will not hold you back. Conduct your own research on all Indian loans and schemes through the YNOS debt funding platform, to understand the nuances of loans and funding in a streamlined manner.