6 Attractive Business Loans for Women Entrepreneurs

business loans

Business Loans – Gone are the days where women roles were limited to the home. Now a day you will find women competing with men in every sphere of life including entrepreneurship. The biggest challenge for women entrepreneur is to source the fund for business. However, there are many financial institutions and a bank that support women entrepreneurs by providing a business loan at concessional rates. If you are women entrepreneur and looking for a business loan here are 6 Attractive business loan options for the women entrepreneurs.

6 Attractive Business Loans for Women Entrepreneurs

Cent Kalyani 

  • Cent Kalyani is a business loan provided by Central Bank of India to the female entrepreneurs.
  • This scheme is introduced to encourage women entrepreneurs to start a new business or to expand existing once.
  • This business loan can be taken by female entrepreneurs engage in manufacturing activity like handicraft, food-processing.
  • This loan can also be taken by professional and self-employed women like a doctor, CA, engineer, dieticians, fashion designer etc.
  • Small business owners like a tailor, STD, Xerox, small food business can also take this loan.

Name of Lender – Central Bank of India

Interest rate – Loan up to 10 Lakh – MCLR + 0.25% Loan above 10 Lakh and up to 1 Cr – MCLR + 0.50% Additional Interest concession of 0.25% if account is rated by external agency.

Loan Limit – 1 Cr

Get more information about Cent Kalyani Scheme on Central Bank of India site.

Dena Shakti

  • Dena Shakti is a business loan provided by Dena bank for the female entrepreneurs.
  • The loan under this scheme is provided for small enterprises doing manufacturing, sales and service business.
  • This loan can also be extended for retail trade, housing, and education enterprises.

Name of Lender – Dena Bank

Interest rate – 25 basis point less than applicable interest rates

Loan Limit – 20 Lakh

Annapurna

  • Annapurna is special Business loan scheme for the food business. This loan is provided by Bhartiya Mahila Bank.
  • This loan is given only for food catering, selling tiffin or lunch pack business.
  • Loan repayment term for Annapurna Scheme is 3 years.

 Name of Lender – Bhartiya Mahila Bank

Interest rate – As per Mudra Loan

SIDBI Mahila Udyam Nidhi

  • SIDBI Mahila Udyam Nidhi is a specialized scheme to provide initial capital for setting up business.
  • This business loan can also be availed for expansion, diversification, modernisation, technology upgradation, quality improvement, rehabilitation of existing tiny units.

Name of Lender – SIDBI

Interest rate – 9% to 10.5%

Loan Limit – 2.5 Lakh

Udyogini

  • Udyogini is business loan scheme provided by Punjab and Sind Bank for female entrepreneur.
  • You can apply for a loan as Udyogini for direct agriculture activities, Tiny SSI, retrial traders, business enterprises, professional and self-employed.
  • The loan limit is decided on a case to case basis and depends on type and purpose of a loan.

Name of Lender – Punjab and Sind Bank

Interest rate – As per applicable rate to MSME

Loan Limit – Above Rs. 25,000

Stree Shakti Package

  • Stree Shakti Package is for women entrepreneur who holds 50% ownership in small business.
  • No security is required to avail this loan up to 5 Lakh in case of tiny sector units.
  • In case loan value exceed Rs. 2 Lakh discount of 0.5% is given for Stree Shakti Package.

Name of Lender – State Bank of India

Interest rate – 0.5% less from applicable rates

Loan Limit – 25 Lakh

For more information about Stree Shakti Package here.

Apart from above women entrepreneurs can also raise capital via following options.

  • Normal Business Loan
  • Personal Loan
  • Gold Loan
  • Peer 2 Peer Lending Platform
  • Family and Friends

Following documents are required to apply for a business loan.

  • PAN Card
  • ID Proof and Address Proof
  • Passport size photos
  • Income Tax Return and Profit & Loss Statement

Eligibility

  • Age between 18 years to 55 years
  • Proper documentation and project plan
  • Proof or lower income or No Income

  Points to consider before taking business loans –

  • Applicable Interest rate
  • Processing Fees and prepayment charges
  • Late payment fees
  • Processing time
  • Collateral required
  • Repayment options

What is your opinion about women empowerment and business loan options for women?

Do share your views in the comment section.

Article by Raviraj

Hi, I am Raviraj. I am passionate about money matters and finance. I have 10 years of rich experience in the field of financial planning, Investments & Insurance. I have written 850+ article on this blog. If you like my efforts kindly subscribe to this blog and also let your friends know about this website by sharing.

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1 Comment

  1. Very nicely compiled post !

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