Apply Business Loan for Women Online – Check Eligibility & Interest Rates

Apply Business Loan for Women Online – Check Eligibility & Interest Rates

Jun 18, 2024

15 Mins

Entrepreneurship ventures or startups are definitely not considered nowadays as new business concepts in India. In order to impetus further growth of entrepreneurial initiatives, leading Private, and Public Sector Banks, NBFCs have introduced various business loan schemes for women entrepreneurs. Few and selected lenders also offer business loans and working capital loans at concessional interest rates to women entrepreneurs. Let’s now take a look at the 5 most popular loan schemes for women entrepreneurs in India offered by financial institutions.

1. Cent Kalyani from the Central Bank of India

Central Bank of India offers business and startup loans for women entrepreneurs who are looking to open a new business or want to expand or alter their current one.

Features:

Interest Rate Range: 8.70% p.a. – 8.95% p.a.

Interest Rate for Loan up to Rs. 10 Lakh: 8.70% p.a.

Interest Rate for Loan above Rs. 10 Lakh and up to Rs.100 Lakh: 8.95% p.a.

Purpose: To meet day-to-day requirements, such as the purchase of plant & machinery/equipment, etc., and working capital expenditure.

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.

Loan Amount: Up to Rs. 100 lakhs

Processing Fee: Nil

CGTMSE Coverage: Available

Collateral/Security or Third Party Guarantee: Not required, as covered under the Guarantee cover of CGTMSE

Insurance: Comprehensive insurance of stock, machinery/equipment, etc with a bank clause

Women entrepreneurs who are rendering services to rural and cottage industries, MSMEs, and women working in the farming, retailing, and government-backed firms can avail business loan

Note: Bank’s 1-year MCLR stands at 8.45% & Additional Interest concession of 0.25% on the interest rate if an account is rated by an external agency.

2. Mudra Loan under PMMY

Launched in 2015, MUDRA Loan under Pradhan Mantri Mudra Yojana (PMMY) is a loan scheme offered by banks for individuals, startups, and business owners, as well as women entrepreneurs across India. Under this scheme loan amount up to Rs. 10 lakh are offered to women who want to start their own business or expand the existing one. The loan amount is offered under three categories named Shishu, Kishor, and Tarun. Find below the basic features of the loan scheme offered by banks and NBFCs under the Mudra Yojana:

Features:

Concessional Interest Rates for Women Entrepreneurs

Collateral-Free Business Loans: No collateral or security is required by banks or NBFCs

Loan Type: Term Loan / Overdraft

3 Loan Categories: Shishu, Kishor, and Tarun

Loan Amount: No minimum limit and maximum up to Rs. 10 lakh

Repayment Tenure: Up to 5 years

Processing Fee: Nil to 0.50% of the sanctioned loan amount

Loans for Women living in both Urban and Rural regions of India

Mudra loans are offered to women to encourage women entrepreneurs and to promote the MSME sector.

Latest Business Loan Interest Rates

Bank/NBFCsInterest Rate

  • Axis Bank10.75% p.a. onwardsApply Now

  • Bajaj Finserv9.75% - 30% p.a.Apply Now

  • Flexiloans1% per month onwardsApply Now

  • HDB Financial Services Ltd.8% - 26% p.a.Apply Now

  • HDFC Bank10.75% - 25% p.a.Apply Now

  • IDFC First Bank10.50% p.a. onwardsApply Now

  • Indifi1.50% per month onwardsApply Now

  • Kotak Mahindra Bank16% - 26% p.a.Apply Now

  • Lendingkart12% - 27% p.a.Apply Now

  • Mcapital2% per month onwardsApply Now

  • NeoGrowth Finance15% - 40% p.a.Apply Now

  • Tata Capital12% p.a. onwardsApply Now

  • UGRO Capital9% - 36% p.a.Apply Now

3. ICICI Bank – Self Help Group-Bank Linkage Programme (SBLP)

ICICI Bank has recently introduced Collateral-free business loans for Self Help Groups (SHGs) of 10-20 women. The maximum loan amount offered under this scheme is Rs. 10 lakh with a repayment tenure of up to 3 years.

Eligibility Criteria

  • The minimum existence of SHG should be at least 6 months

  • A group of 10-20 women is eligible to avail of funds

  • A minimum Savings/Corpus of Rs 5,000 is required

Features:

Interest Rate: Up to 21.50% p.a.

Purpose of Loan: Business expansion, and income generation and livelihood activities

Loan Amount: Up to Rs. 7.5 lakh for customers of other Banks and up to Rs. 10 lakh for ICICI Bank customers

Collateral-free loans

Repayment Tenure: Up to 36 months

4. Stand-Up India

Stand Up India is a loan scheme initiated by the Govt. to offer credit facilities for setting up Greenfield Enterprise for a loan amount of Rs. 10 lakh to Rs. 1 crore.

Features:

  • Interest Rate: (Base Rate + (MCLR) + 3% + Tenor Premium)

  • Repayment Tenure: Up to 7 years, including a moratorium period of 18 months

  • Working Capital limit above Rs. 10 lakh to be sanctioned by the way of Cash Credit limit

The specification of the loan is expected to cover 85% of the project cost. However, it will not be applicable if the borrower’s contribution along with convergence support comes from any other schemes that exceed 15% of the project cost

Collateral: Required as primary security or guarantee of Credit Guarantee Scheme for Stand-up India Loans (CGFSIL)

5. PNB Mahila Udyami

Nature of loan in Term, Loan and Working Capital Loan. Business loan scheme of up to Rs. 10 lakh for new & existing units with tenure of 3-5 years (Term Loan) and 3 years (Overdraft Facility) with moratorium period of 3-6 months depending upon type of activity and income generation. The Margin up to Rs. 2 lakh is Nil, above Rs. 2 lakh – Rs. 5 lakh is 20% and Above Rs. 5 lakh to Rs. 10 lakh is 25%.

Eligibility Criteria:

Any individual women/ women entrepreneur (s)/ Enterprise where women entrepreneurs hold not less than 50% of financial holding. However, preference will be given to women belonging to ST/SC/BPL Card Holders

Categories of women entrepreneurs strained in R-SETIs/ Skill Development Institutions etc. any other training institute are given more preference

Applicant should not be a defaulter to any Bank / Financial Institution

Loan facilities availed by the beneficiaries under Govt. scheme are not eligible

Small Business Loans for Women: Features

Interest Rate: Discounted or concessional interest rates for Women Borrowers that shall vary from bank to bank

Loan Amount: No Minimum Limit, Maximum Loan Amount Up to Rs. 10 lakh, may exceed

Repayment Tenure: From 12 months to 5 years

Collateral/Security or Third-party Guarantee: Not required

Loan Type: Term Loan (Short or Long term), Unsecured loan, Working Capital Loan, Overdraft

Eligibility Criteria

Age Criteria: Min. 18 years and Max. 65 years

Applicants with no past loan defaults shall be considered

Individuals, MSMEs, Sole Proprietorships, Partnership Firms, and Limited Liability Partnerships (LLPs), engaged in the trading, manufacturing, and services sector are eligible

Annual Turnover: To be defined by the bank or lender

Documents Required for Loan Application

Duly filled application form with 2 passport-size photos of the applicant

Self-written Business Plan

Identity Proof – Driving License, Voter ID Card, PAN card, Passport, Aadhaar card, etc.

Address Proof: Passport, Utility Bills, Aadhar Card, Voter’s ID card

Income Proof: Last 6 months’ bank statement, Salary Slips, Bank statement

Business Incorporation Certificate

Any other document required by the lender

Additional Loan Scheme for Women Entrepreneurs

KBL Mahila Udyog Loan from Karnataka Bank

KBL Mahila Udyog Loan is offered only to women entrepreneurs to meet credit requirement for any income generating activities. Minimum of 51% of the shareholding and controlling stake is held by women borrowers in a firm or company. This loan is offered exclusively to women and the maximum loan amount offered is Rs. 10 lakh (Rs. 2 lakh for working capital loan). Below listed is the loan details for further information:

Loan Highlights

Interest Rate: 11.94% p.a. onwards

Loan Amount: Term Loan of up to Rs. 10 lakh & Working Capital Loan up to Rs. 2 lakh

Repayment Tenure: OD: 12 months, Demand Promissory Note (DPN) up to 34 months & Term Loan Up to 120 months, including moratorium period

Margin: 15% – 30%

Collateral/Security: Hypothecation of assets created with Bank finance, Secondly, loan shall be covered under CGTMSE scheme, wherever permissible

Entrepreneurship ventures or startups are definitely not considered nowadays as new business concepts in India. In order to impetus further growth of entrepreneurial initiatives, leading Private, and Public Sector Banks, NBFCs have introduced various business loan schemes for women entrepreneurs. Few and selected lenders also offer business loans and working capital loans at concessional interest rates to women entrepreneurs. Let’s now take a look at the 5 most popular loan schemes for women entrepreneurs in India offered by financial institutions.

1. Cent Kalyani from the Central Bank of India

Central Bank of India offers business and startup loans for women entrepreneurs who are looking to open a new business or want to expand or alter their current one.

Features:

Interest Rate Range: 8.70% p.a. – 8.95% p.a.

Interest Rate for Loan up to Rs. 10 Lakh: 8.70% p.a.

Interest Rate for Loan above Rs. 10 Lakh and up to Rs.100 Lakh: 8.95% p.a.

Purpose: To meet day-to-day requirements, such as the purchase of plant & machinery/equipment, etc., and working capital expenditure.

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.

Loan Amount: Up to Rs. 100 lakhs

Processing Fee: Nil

CGTMSE Coverage: Available

Collateral/Security or Third Party Guarantee: Not required, as covered under the Guarantee cover of CGTMSE

Insurance: Comprehensive insurance of stock, machinery/equipment, etc with a bank clause

Women entrepreneurs who are rendering services to rural and cottage industries, MSMEs, and women working in the farming, retailing, and government-backed firms can avail business loan

Note: Bank’s 1-year MCLR stands at 8.45% & Additional Interest concession of 0.25% on the interest rate if an account is rated by an external agency.

2. Mudra Loan under PMMY

Launched in 2015, MUDRA Loan under Pradhan Mantri Mudra Yojana (PMMY) is a loan scheme offered by banks for individuals, startups, and business owners, as well as women entrepreneurs across India. Under this scheme loan amount up to Rs. 10 lakh are offered to women who want to start their own business or expand the existing one. The loan amount is offered under three categories named Shishu, Kishor, and Tarun. Find below the basic features of the loan scheme offered by banks and NBFCs under the Mudra Yojana:

Features:

Concessional Interest Rates for Women Entrepreneurs

Collateral-Free Business Loans: No collateral or security is required by banks or NBFCs

Loan Type: Term Loan / Overdraft

3 Loan Categories: Shishu, Kishor, and Tarun

Loan Amount: No minimum limit and maximum up to Rs. 10 lakh

Repayment Tenure: Up to 5 years

Processing Fee: Nil to 0.50% of the sanctioned loan amount

Loans for Women living in both Urban and Rural regions of India

Mudra loans are offered to women to encourage women entrepreneurs and to promote the MSME sector.

Latest Business Loan Interest Rates

Bank/NBFCsInterest Rate

  • Axis Bank10.75% p.a. onwardsApply Now

  • Bajaj Finserv9.75% - 30% p.a.Apply Now

  • Flexiloans1% per month onwardsApply Now

  • HDB Financial Services Ltd.8% - 26% p.a.Apply Now

  • HDFC Bank10.75% - 25% p.a.Apply Now

  • IDFC First Bank10.50% p.a. onwardsApply Now

  • Indifi1.50% per month onwardsApply Now

  • Kotak Mahindra Bank16% - 26% p.a.Apply Now

  • Lendingkart12% - 27% p.a.Apply Now

  • Mcapital2% per month onwardsApply Now

  • NeoGrowth Finance15% - 40% p.a.Apply Now

  • Tata Capital12% p.a. onwardsApply Now

  • UGRO Capital9% - 36% p.a.Apply Now

3. ICICI Bank – Self Help Group-Bank Linkage Programme (SBLP)

ICICI Bank has recently introduced Collateral-free business loans for Self Help Groups (SHGs) of 10-20 women. The maximum loan amount offered under this scheme is Rs. 10 lakh with a repayment tenure of up to 3 years.

Eligibility Criteria

  • The minimum existence of SHG should be at least 6 months

  • A group of 10-20 women is eligible to avail of funds

  • A minimum Savings/Corpus of Rs 5,000 is required

Features:

Interest Rate: Up to 21.50% p.a.

Purpose of Loan: Business expansion, and income generation and livelihood activities

Loan Amount: Up to Rs. 7.5 lakh for customers of other Banks and up to Rs. 10 lakh for ICICI Bank customers

Collateral-free loans

Repayment Tenure: Up to 36 months

4. Stand-Up India

Stand Up India is a loan scheme initiated by the Govt. to offer credit facilities for setting up Greenfield Enterprise for a loan amount of Rs. 10 lakh to Rs. 1 crore.

Features:

  • Interest Rate: (Base Rate + (MCLR) + 3% + Tenor Premium)

  • Repayment Tenure: Up to 7 years, including a moratorium period of 18 months

  • Working Capital limit above Rs. 10 lakh to be sanctioned by the way of Cash Credit limit

The specification of the loan is expected to cover 85% of the project cost. However, it will not be applicable if the borrower’s contribution along with convergence support comes from any other schemes that exceed 15% of the project cost

Collateral: Required as primary security or guarantee of Credit Guarantee Scheme for Stand-up India Loans (CGFSIL)

5. PNB Mahila Udyami

Nature of loan in Term, Loan and Working Capital Loan. Business loan scheme of up to Rs. 10 lakh for new & existing units with tenure of 3-5 years (Term Loan) and 3 years (Overdraft Facility) with moratorium period of 3-6 months depending upon type of activity and income generation. The Margin up to Rs. 2 lakh is Nil, above Rs. 2 lakh – Rs. 5 lakh is 20% and Above Rs. 5 lakh to Rs. 10 lakh is 25%.

Eligibility Criteria:

Any individual women/ women entrepreneur (s)/ Enterprise where women entrepreneurs hold not less than 50% of financial holding. However, preference will be given to women belonging to ST/SC/BPL Card Holders

Categories of women entrepreneurs strained in R-SETIs/ Skill Development Institutions etc. any other training institute are given more preference

Applicant should not be a defaulter to any Bank / Financial Institution

Loan facilities availed by the beneficiaries under Govt. scheme are not eligible

Small Business Loans for Women: Features

Interest Rate: Discounted or concessional interest rates for Women Borrowers that shall vary from bank to bank

Loan Amount: No Minimum Limit, Maximum Loan Amount Up to Rs. 10 lakh, may exceed

Repayment Tenure: From 12 months to 5 years

Collateral/Security or Third-party Guarantee: Not required

Loan Type: Term Loan (Short or Long term), Unsecured loan, Working Capital Loan, Overdraft

Eligibility Criteria

Age Criteria: Min. 18 years and Max. 65 years

Applicants with no past loan defaults shall be considered

Individuals, MSMEs, Sole Proprietorships, Partnership Firms, and Limited Liability Partnerships (LLPs), engaged in the trading, manufacturing, and services sector are eligible

Annual Turnover: To be defined by the bank or lender

Documents Required for Loan Application

Duly filled application form with 2 passport-size photos of the applicant

Self-written Business Plan

Identity Proof – Driving License, Voter ID Card, PAN card, Passport, Aadhaar card, etc.

Address Proof: Passport, Utility Bills, Aadhar Card, Voter’s ID card

Income Proof: Last 6 months’ bank statement, Salary Slips, Bank statement

Business Incorporation Certificate

Any other document required by the lender

Additional Loan Scheme for Women Entrepreneurs

KBL Mahila Udyog Loan from Karnataka Bank

KBL Mahila Udyog Loan is offered only to women entrepreneurs to meet credit requirement for any income generating activities. Minimum of 51% of the shareholding and controlling stake is held by women borrowers in a firm or company. This loan is offered exclusively to women and the maximum loan amount offered is Rs. 10 lakh (Rs. 2 lakh for working capital loan). Below listed is the loan details for further information:

Loan Highlights

Interest Rate: 11.94% p.a. onwards

Loan Amount: Term Loan of up to Rs. 10 lakh & Working Capital Loan up to Rs. 2 lakh

Repayment Tenure: OD: 12 months, Demand Promissory Note (DPN) up to 34 months & Term Loan Up to 120 months, including moratorium period

Margin: 15% – 30%

Collateral/Security: Hypothecation of assets created with Bank finance, Secondly, loan shall be covered under CGTMSE scheme, wherever permissible

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