Business Loans for Women
Women entrepreneurship is on the rise these days. There are more and more businesses that are founded and run by women. They could be anything from home-based catering or designing business to running a public company. The government and the private sector have come up with various schemes to help women secure finance required to run their businesses. .
Money View loans as Business Loans
Money View offers easy, instant online personal loans that can be used for meeting fund requirements for starting off or expansion of your business. The eligibility criteria for getting this easy loan is very simple. Here is the basic eligibility requirement for both salaried and self-employed individuals according to the area of residence and credit score.
Income and Credit Score Eligibility Criteria Self Employed Individuals:
Minimum Monthly Income:Rs 25,000
CIBIL Credit Score Requirement: CIBIL Score of 650 /Experian Score of 750 and above
The documentation required for availing this loan is also quite simple and the best part is that the documents are required to be submitted digitally. So, you can avoid the hassles of getting photocopies and run around to submit the documents physically.
The documents required for availing the loan are as follows:
Any one of the government-issued identity proof which clearly shows your Date of Birth in dd/mm/yyyy format is allowed. It could be anyone from your Voter Id, Aadhaar Card, Valid Driver’s License or Passport or your PAN Card
Any one of the original, valid documents showing your current address Pincode can be submitted as proof of your address. They could be Aadhaar Card, Ration Card, Utility Bills like Telephone, Electricity, etc, Voter ID Card or Bank Statement/Passbook. We accept utility bills and bank statements generated within the last 60 days only.
For Self-Employed Individuals
Bank Statement (Salary A/C) – Last 3 months’ statement with salary credits Income Tax Return Verification Form for the last 2 years if you’re self-employed
Are you looking for an easy loan either to set up your business or expand your business? You could apply for a Money View instant personal loan either on the Money View Loans app or on the website and get funds in your bank account within 24 hrs.
Government Business Loan Schemes for Women
The Government of India has come up with many schemes that help women get funds needed for starting or expanding a business. Some of the popular government business loan schemes that can be used to start a business are:
- Pradhan Mantri Mudra Yojana
- Stand-Up India Scheme
- Udyogini Scheme
- Mahila Udyam Nidhi Scheme
- PSB Loan in 59minutes
- Credit Guarantee Scheme
Business Loan Schemes from Banks for Women
- Dena Shakti by Dena Bank
- Women Empowerment Business Loan Schemes by PNB
- Canara Bank MSE Vijeta Scheme
Pradhan Mantri Mudra Yojana
This is one of the widely used schemes that provide financial assistance to women engaged in business. It could be used for running a wide range of business ventures like running a beauty parlour, catering, interior designing, tuition centre, tailoring units, etc. The funds are provided under 3 broad categories depending upon the stage of your business.
- Shishu – In this category, the loan amount is limited to ₹50,000. This is meant for businesses that are in their initial stages.
- Kishor – In this category, the loan amount can range between ₹50,000 and ₹5 lakhs. This is for a well-established business.
- Tarun – The loan amount in this category is from ₹5 lakhs to ₹10 lakhs. This loan is meant for well established businesses that are looking for funds for further expansion.
How to Apply for Pradhan Mantri Mudra Yojana Scheme Loan?
MUDRA or Micro Units Development & Refinance Agency Ltd., is a financial institution set up by the Government of India for development and refinancing of micro-units enterprises. It was announced by the Hon’ble Finance Minister while presenting the Union Budget for FY 2016. This is a refinancing agency that helps the Last Mile Financiers like Banks, NBFCs, Microfinance Institutions and other societies to disburse business loans to the MSME sector. So the loan is not directly disbursed by MUDRA. You can directly apply for a PMMY loan that is applicable for your category of business at any of the chosen banks/NBFC/ or any other approved agency. The interest charged on the loan will be dynamic and will be decided by the loan issuing bank under the broad guidelines given by RBI.
The borrower can approach any of the lending institutions mentioned above or can apply online through the portal www.udyamimitra.in
Stand-Up India Scheme
This is a scheme that allows bank loans anywhere in the range of Rs 10 lakh and Rs 1 crore to set up a greenfield enterprise. The enterprise can come up in any area of services, manufacturing, or in the trade. The main condition that one should meet to avail funds under this scheme is that at least one woman borrower and one SC/ST borrower should be lent funds per branch.
If it is a non-individual enterprise, then at least 51% of the shareholding and controlling stake has to be held by either a woman or SC/ST borrower. The rate of interest charged would be the lowest interest charged for that category by the bank. The period of the loan can be for 7years with a maximum moratorium (no EMI) period of 18 months
How to Apply for a Business Loan from Stand-Up India?
You can apply to Stand-Up India loan in easy steps as below:
- Log on to https://standupmitra.in and register yourself with all required details
- Choose the preferred lender
- Fill the application form
- Apply to the preferred lender.
Udyogini Scheme aims to provide subsidised loans to women entrepreneurs in rural and underdeveloped areas to empower them.
All women in the rural area are allowed to apply for a loan under the Udyogini Scheme. But, special preference is given to widows, destitute and disabled women. This loan can be used for starting small businesses. Any of the 88 businesses that fall under the Small Scale Industries scheme like fishing, sewing, bakery, library, poultry, dairy are some of the businesses that can be started under the Udyogini Scheme.
The maximum amount of loan allowed under this scheme is Rs 3 lakhs.
How to Apply for Loans under Udyogini Scheme?
You can apply for loans under the Udyogini Scheme at Women Development Corporation of states or through banks. To do that the steps involved are
- Fill the application form that is available at the Women and the Child Welfare Dept at the local level.
- Submit other documents like Income Certificate, Caste Certificate, Bank Passbook, Ration card,photographs, etc to the bank.
- Get the loan disbursed.
Mahila Udyam Nidhi Scheme
This scheme is available from the Small Industries Bank of India or SIDBI for women to set up projects in the tiny sector. This scheme will help women entrepreneurs to getting equity contributions while setting up their entrepreneurial ventures. This is one of the Start-Up loans that is available for women.
The cost of the project under this scheme cannot be more than Rs 10 lakhs of which Rs 2.5 lakh can be availed as a soft loan that has to be repaid during the tenure of 10 years with a moratorium of 5 years.
How to Apply for Mahila Udyam Nidhi Scheme?
Loan for Mahila Udyam Nidhi Scheme can be applied with the application for the loan with supporting documents at the banks allowing this scheme.
Some of the government schemes that can be applied by women entrepreneurs who have established businesses are
PSB Loan in 59minutes
This is another initiative of the Indian government that allows businesses to avail of funds in an easy manner. The loan approval will be done in a matter of 59 minutes. Post-approval, businesses can expect disbursal of the loan amount to happen in a week’s time. Any amount between Rs 1lakh to Rs 5 crores can be availed under this scheme. Women running businesses can also benefit from this initiative
How to Apply for PSB Loan in 59 minutes?
The entire process of applying to PSB Loans in 59 minutes has been simplified and made user-friendly.
Applying for a business loan (in-principle approval) is a simple process:
- Click on www.psbloansin59minutes.com
- Register using Name, Mobile Number and Email Id
- Post registration, the borrower can select funding requirements i.e. for business purpose or for retail.
- Select "Business Loan".
- After selection of fund requirement, provide required details to avail business loan in-principle approval within 59 minutes.
Credit Guarantee Fund Scheme for Micro and Small Enterprises
Availability of 3rd party guarantee or collateral for loans has always been an issue for entrepreneurs availing loans. To overcome this, the Ministry of Micro, Small & Medium Enterprises (MSME), Government of India launched Credit Guarantee Scheme (CGS) so as to strengthen the credit delivery system and facilitate the flow of credit to the MSE sector. To operationalize the scheme, the Government of India and SIDBI set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). Under this scheme, women entrepreneurs can avail of collateral-free loans. The Credit Guarantee Scheme (CGS) seeks to reassure the lender that, in the event of an MSME unit, which availed collateral-free credit facilities, fails to discharge its liabilities to the lender, the Guarantee Trust would make good the loss incurred by the lender up to 50/75/80/85 percent of the credit facility
How to Apply to the Credit Guarantee Scheme?
The individual entrepreneurs cannot directly apply to the credit guarantee scheme. It will be the banks, NBFCs, or other approved organizations that give business loans who can apply for the guarantee scheme.
The steps involved for a woman entrepreneur would be
- Prepare all documents needed for applying to a business loan like Balance Sheet, Profit & Loss Account, Market analysis, Return on Investment calculations, etc
- Apply for a loan from the lender under the Credit Guarantee Scheme.
- Once the lender approves of the loan, the bank will apply for the Credit Guarantee Scheme.
Business Loan Schemes from Banks for Women
Other than the Government, banks have also come up with various business loan schemes for women. Some of these are:
Dena Shakti by Dena Bank (now Bank of Baroda)
Dena Shakti is one of the modified schemes for financing for women entrepreneurs by including many of the activities like below which were earlier not allowed. The activities covered under the scheme now are
- Agriculture & allied activities
- Small Enterprises (Direct and Indirect Finance)
- Retail Trade
- Micro Credit
The ceiling of the loan depends on the category for which the loan is availed. The interest and margin charged will also depend on RBI guidelines and the category under which the loan is availed.
How to Apply for Dena Shakti Financial Assistance?
You can apply for this bank scheme by approaching the nearest Dena Bank.
Women Empowerment Business Loan Schemes by PNB
PNB Mahila Udyam Nidhi Scheme
PNB Mahila Udyam Nidhi Scheme helps women entrepreneurs in meeting their equity gap. These units could be set up in small scale sectors and could also be used for rehabilitation of sick units. If you have an existing unit that needs upgrading or reorganisation, assistance is available under PNB Mahila Udyam Nidhi Scheme on a case to case basis.
Scheme For Financing Creches
If you are looking for support for establishing creches, easy credit can be availed under this scheme. Women can look for finance required for purchasing infrastructure for a creche like basic equipment, utensils, stationers, growth monitoring equipment, fridge, cooler/fan, water filter, etc. and for recurring expenditure for one month.
PNB Kalyani Card Scheme
This scheme is meant for provision of working capital credit for agriculture and other non-farm activities. It can be applied singly or in combination with other related activities.
PNB Mahila Sashaktikaran Abhiyan
Under this scheme, following concessions will be admissible Trade-Related Entrepreneurship Assistance and Development (TREAD) Scheme: The scheme envisages the extension of credit by the bank and grant by the Govt of India to NGOs. It is for the benefit of women either through SHGs or individually for setting up of small & micro-enterprises in the non-farm sector.
How to Apply for Women Empowerment Business Loans from PNB?
You could apply for any of the Women empowerment business loans by approaching any Punjab National Bank branches.
Canara Bank MSE Vijeta Scheme
This scheme is aimed at helping women entrepreneurs who are running Micro and Small Enterprises to fulfill their working capital requirements. The minimum amount of loan allowed is Rs 10 lakh and the maximum being Rs 2 crore. Partnership firms with women partners are also allowed to apply for this scheme.
How to Apply for Canara Bank Vijeta Scheme?
You could apply to this scheme by approaching the branch of Canara Bank or on their website.