Wednesday, June 23, 2021

5 TYPES OF BUSINESS LOANS TO EMPOWER WOMEN ENTREPRENEURS

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The business environment in India is significantly influenced by women entrepreneurs. Today, there are 8 million women successfully running their businesses. According to government economic censuses, account for 14% of all entrepreneurs in the world. Leading financial institutions in India such as Tata Capital offer flexible loans to promote further growth and to boost entrepreneurial initiatives among women. The women applicants, for example, get a 5 bps (base points) interest-rate rebate for Tata Capital Home Loans.

Things are looking positive with the new business loan options for women entrepreneurs in India. Here are some of the best options for women entrepreneurs today:

  • BharatiyaMahila Bank (BMB) business loan

On 19 November 2019, the BMB opened, and on 1 April 2017, it joined the State Bank of India. This loan is for women who want to start a business of their own. This provided business loans for women entrepreneurs with a share of 10.15% and more to 20 Crores for producer companies. Credit Guarantee Fund Trust for micro and small companies (CGTMSE) also provides collateral-free loans up to 1 crore. In seven years, the loans under this bank loan system will be repaid.

  • Annapurna scheme

This scheme is intended to fund the establishment of a food catering unit to sell tiffin/food/lunch packages, etc. It provides up to 50 thousand rupees of credit. A loan under this scheme may be used to purchase utensils, additional kitchen equipment, and kitchen utensils. The interest rate depends on the market rate and the bank in question. A guarantor is required to secure the loan, and it can be repaid in 3 years (36 monthly instalments).Women do not have to pay EMI for the first month after the loan is accepted.

  • Stree Shakti Package

This package is available for the women who have a 50% stake in an organization or corporation and participate in the state agencies running Enterprise Development (EDP) programs. In the case of loans of more than two lakhs, it also provides a reduced interest rate of 0.5%.No security is necessary for loans up to Rs. 5 lakhs for small sector units.

  • Mudra yojana scheme for women

This scheme is offered by nationalized banks under the Pradhan Yojna. This financial support is given to female entrepreneurs wishing to start their small enterprises, including daycare, beauty parlor, classes, customization unit, etc. Under this scheme, the loans between Rs.50 000 TO Rs.50 are sanctioned. No collateral and guarantees are required for loans below Rs.10.It has three plans:

  1. Shishu – Offers loan up to Rs.50, 000 for new businesses with an interest of 1% per month, and the repayment period is five years.
  2. Kishore – Offers loans from Rs.50, 000 to 5 lacks for well-established businesses. Interest depends on the bank, scheme guidelines, and applicant’s credit history. Repayment also depends on the bank’s discretion.
  • Tarun – Offers loan from Rs.5 lacks to 50 lacks for business expansion. Here also interest depends on the bank, scheme guidelines, and applicant’s credit history. Repayment also depends on the bank’s discretion.
  • Cent Kalyani scheme

This scheme is proposed by the Central Bank of India. It applies to women entrepreneurs in several areas, such as SMEs, farming, or retail trade. This scheme sanction loans up to Rs.1 crore. Collateral and guarantors are not necessary. There are no treatment charges, and the rate of interest varies by market rates.

Reference:https://savvywomen.tomorrowmakers.com/wise/government-schemes-can-help-women-entrepreneurs-india-grow-their-small-businesses-article

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