Top 5 Loan Schemes for Women Entrepreneurs in India

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.