Top 5 Loan Schemes for Women Entrepreneurs in India

Summary

Entrepreneurship ventures or startups have become integral to India's business landscape. To fuel their growth, both private and public sector banks, along with NBFCs, offer an array of business loan schemes for women entrepreneurs.

Entrepreneurship ventures

or startups have become integral to India's business landscape. To fuel their growth, both private and public sector banks, along with NBFCs, offer an array of business loan schemes for women entrepreneurs. These lenders provide business loans and working capital loans at favorable interest rates tailored specifically for women. Discover the 5 most prominent loan schemes for women entrepreneurs in India offered by various financial entities.

1. Cent Kalyani by Central Bank of India

The Central Bank of India offers startup loans designed for women entrepreneurs seeking to start or expand their enterprises.

Interest Rate: 8.70% to 8.95% per annum
Loan Amount: Up to Rs. 100 lakh
Purpose: For machinery/equipment purchase and working capital
No Collateral Required: Facilitated under CGTMSE
Processing Fee: None

2. Mudra Loan under PMMY

Initiated in 2015, this program provides loans up to Rs. 10 lakh to establish or enhance businesses categorized under Shishu, Kishor, and Tarun.

Interest Rates: Reduced rates for women
Collateral-Free
Repayment: Up to 5 years
Eligible: Services extended to both urban and rural women nationwide

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

ICICI Bank offers unsecured business loans for groups comprising 10-20 women, with a ceiling loan amount of Rs. 10 lakh and a tenure up to 3 years.

Interest Rate: Maximum 21.50% per annum
No Collateral Required
Eligibility: SHGs operational for a minimum of 6 months

4. Stand-Up India

This government-led initiative supports the creation of Greenfield Enterprises with loans ranging from Rs. 10 lakh to Rs. 1 crore.

Interest Rate: Base Rate + MCLR + 3% + Tenor Premium
Repayment: Up to 7 years, with an 18-month moratorium
Collateral: Necessary as primary security

5. PNB Mahila Udyami

This program provides loans up to Rs. 10 lakh for both startups and existing businesses, with a repayment period of 3-5 years for term loans.

Eligibility: Women holding a minimum 50% financial interest
No Collateral Required

KBL Mahila Udyog Loan by Karnataka Bank

Exclusively for women entrepreneurs to address credit needs, with a maximum loan limit of Rs. 10 lakh.

Interest Rate: Starting from 11.94% per annum
Collateral: Hypothecation of assets

These initiatives reflect an ongoing commitment to fostering female entrepreneurship in India, enhancing opportunities for women across various sectors.