Small Business Loan for Women

Business Loans for Women

True growth of a country is impossible without recognising the women workforce. Each day more and more women are taking charge of their career, even choosing to start businesses by themselves. 

At such times, the government, banks, and private finance companies are introducing new schemes to support them. This article will look at all such schemes that are functional in 2023. 

moneyview has an exciting offer for all our female customers in March 2023. Continue reading to know more about this!

Business Loan Schemes for Women at a Glance

The most popular business loans for women entrepreneurs are listed below - 

Government Business Loan Schemes for Women

The Government of India has come up with many schemes that help women get funds for starting or expanding a business. Some of the popular government business loan schemes are:

1. Stand-Up India Scheme 

This scheme is run under the Small Industries Development Bank of India (SIDBI) for financing SC/ST or women entrepreneurs. Some features of this scheme are listed below - 

• This scheme is for manufacturing, servicing, or trading sector

• One can get bank loans between Rs.10 Lakh and Rs.1 Crore

• At least 1 SC or ST or female entrepreneur must get the loan per bank branch

Eligibility Criteria for Stand-Up India Scheme

The eligibility criteria for this scheme are - 

• Candidate should be SC/ST and/or women entrepreneurs 

• Candidate should be above the age of 18

• In case the enterprise has multiple owners, at least 51% of the shareholders or controllers should be of the above mentioned category

• Loans applicable only for greenfield project, i.e., the first time venture of the beneficiary

• Candidate should not be a defaulter in any bank or financial institution

How to Apply for Stand-Up India Scheme?

The scheme is available in all commercial bank branches, and can be availed by - 

1. Directly contacting the bank branch

2. Contacting the Lead District Manager

3. Visiting the SIDBI Stand-Up India portal 

If applying through the portal, you can follow these steps - 

Step-1: Visit the portal and click on ‘Register’ and answer the questions on the registration page.

Step-2: The portal will classify you as a ‘Trainee Borrower’ or a ‘Ready Borrower’. You will also get feedback on your eligibility. 

Step-3: You can then choose to register and login. Post this, you will be taken to the main dashboard.  

2. Pradhan Mantri Mudra Yojana (PMMY) 

This scheme was launched on 8th April, 2015 for providing loans to non-corporate, non-farm small/micro enterprises. This scheme is not just for women but business women do make up a good portion of the beneficiaries.

The funds of the Mudra loans are classified into 3 broad categories -

• Shishu – This category covers loans up to Rs.50,000. 

• Kishor – This category covers loan amounts between Rs.50,000 and Rs.5 Lakh. 

• Tarun – This category covers loans from Rs.5 Lakh to Rs.10 Lakh.

The objective is to give the highest priority to Shishu loans and then to Kishor or Tarun loans.

Eligibility Criteria for PMMY

Here's the eligibility criteria for a MUDRA loan -

• Candidate should be an Indian citizen

• Candidate should have a business or a business plan 

• The business should be non-farm related 

• The business may belong to either the manufacturing, processing, trading, or service sector

How to Apply for Pradhan Mantri Mudra Yojana Scheme Loan?

To apply for a MUDRA loan, you can follow these guidelines - 

• Loans can be availed from any bank branch, Non-Banking Financial Company, or Monetary Financial Institution

• Application forms or kits can be downloaded from the MUDRA official website

• Loans may also be applied online through the UdyamiMitra portal 

Note: There are no middlemen engaged by MUDRA and candidates are advised to keep away from persons posing as Agents or Facilitators of PMMY/MUDRA.

3. Udyogini Scheme 

The Udyogini scheme was started especially for women entrepreneurs from the rural and underdeveloped areas. Here are some features about the Udyogini scheme - 

• Under this scheme, subsidized loans are provided to women

• The maximum amount of loan that can be availed under this scheme is Rs.3 Lakh

• All women are eligible but special preference is given to widows, destitute, and specially-abled women

• Any business that falls under the Small Scale Industries like fishing, sewing, bakery, library, poultry, dairy can be started under this scheme

• After the loan has been sanctioned, training is provided for 3- days under the Entrepreneurship Development Programme (EDP). After completion of the training, the money is released.

Eligibility Criteria for Udyogini Scheme

The eligibility criteria for applying for a loan under this scheme are listed below - 

• Candidate’s family income should be less than Rs.1,50,000 for women belonging to general and special category

• Age of the candidate should be between 18 and 55 years

How to Apply for Loans under Udyogini Scheme?

You can apply for loans under the Udyogini Scheme at the bank branches which offer this loan. For more information, you may visit this Karnataka State Women’s Development Corporation Udyogini loan page.

4. PSB Loan in 59 minutes 

This is an initiative of the SIDBI that is not especially for women but can be a great help to all entrepreneurs. This website allows businesses to avail of funds in a hassle-free manner. Some features of this scheme are listed below - 

• It is a website where you can apply for all the government scheme loans in one place

• The loan gets approved within 59 minutes

• The whole process takes not more than 1 week

• Loan amounts starting from Rs.1 Lakh to Rs.5 Crore can be availed from the same website

How to Apply for PSB Loans in 59 minutes?

The entire process of applying to PSB Loans is extremely simplife and user-friendly. You can follow these steps - 

Step-1: Visit the PSB Loans in 59 minutes website 

Step-2: Register using your name, mobile number and email ID

Step-3: Post registration, you can select your funding requirements as 'Business Loan'

Step-5: After selection of fund requirement, choose the scheme you want to apply under and provide required details 

Business Loan Schemes for Women from Banks 

Just like the government, many banks have their own schemes for women entrepreneurs. Some of these are listed below - 

1. Union Nari Shakti Scheme 

This is a scheme for women entrepreneurs initiated by the Union Bank of India and can be availed at all of their branches. Here are some important features of the scheme - 

• These are term loans that can be availed for purchasing, constructing, or renovating a business premise

• This loan can also be utilized for purchase of new plant, machinery, or working capital requirements

• The loan amount that can be availed is between Rs.2 Lakh and Rs.10 Crore

• A loan under this scheme is exempted from any processing fee till Rs.2 Crore

• For loans above Rs.2 Crore, there will be a 50% concession on the processing fee

Eligibility Criteria for Union Nari Shakti Scheme

The eligibility criteria for this scheme are listed below - 

• If it is a Self Help Group (SHG), it must have an Udyam Registration

• The MSME or SHG applying for the loan should be owned and managed by women

• If the MSME is not owned by an individual, minimum 51% of the shareholder should be women

How to Apply for Loans under the Udyogini Scheme?

To apply for a loan under the Udyogini Scheme, you can directly walk into the nearest Union bank branch. For more details about the scheme you can refer to the Union Nari Shakti page on the Union Bank of India website. 

2. PNB Mahila Udyami 

In order to encourage and empower women to start their own business and be involved in income generating activities, PNB has rolled out this scheme. Here are some features related to this scheme -

• Under this scheme, preference will be given to women who are SC/ST/BPL card holders

• Women who are trained in R-SETIs/Skill Development Institutions/any training institute will be preferred

• Loans can be availed up to a maximum of Rs.10 Lakh, in the form of either term loans or overdraft facility

• The loan money can be used for setting up a new unit, expanding, or modernizing an existing unit

• The loan amount may also be used for acquisition of fixed assets, like plants, machinery, equipments, furniture, or fixtures

Eligibility Criteria for PNB Mahila Udyami 

An MSME or an individual who meets these criteria are eligible for taking a loan under this scheme - 

• Candidate must be a female entrepreneur or if an enterprise is not owned by an individual, minimum 50% of the financial holding should belong to women

• Candidate should not be a defaulter to any bank or financial institution

• Candidate or enterprise should not be availing a loan under a government sponsored scheme

How to Apply for Loans under PNB Mahila Udyami?

To apply for a loan under the PNB Mahila Udyami Scheme, you can directly walk into your nearest PNB bank branch. For more details about the scheme you can refer to the PNB Mahila Udyami PDF on the PNB website. 

3. Cent Kalyani 

The Central Bank of India has initiated a scheme called the Cent Kalyani for business-women. You can find more about the details of the scheme here -

• Women entrepreneurs can take a loan under this scheme to start a new project or expand or modernize their existing unit

• There is no processing fee for loans under this scheme

• The loans can be availed for a maximum of Rs.100 Lakh

Eligibility Criteria for Cent Kalyani

Any woman entrepreneur who has a running business, or wants to start a business is eligible to apply for a loan under this scheme. 

• Their profession should be classified as a micro/small enterprise, i.e they should be engaged in manufacturing and/or service activity, like handloom, handicraft, food-processing, garment making etc. 

• Candidates may also be professionals or self employed, for eg., doctors, chartered accountants, or trained in art/craft, etc. 

• They may also be transport operators, like three wheeler, or four wheeler operators 

• Retail trade, education and training institutes, or Self Help Groups are not eligible for loans under this scheme

How to Apply for a Loan Under the Cent Kalyani Scheme?

To avail a loan under this scheme, you can walk into any Central Bank of India branch or contact the Women Entrepreneur Cell no 022 66387777. For more details on the scheme, you may also visit the Cent Kalyani page on the Central Bank of India website.

4. Canara Mahila Vikas 

The Canara Mahila Vikas is a business loan scheme rolled out specially for women by the Canara Bank. Some details about the scheme are listed below - 

• The loan amount can be used for purchasing/constructing of business premises, machinery, equipment, or vehicle for business use

• The loan can also be used as working capital requirements for MSMEs including retail traders

• The amount can be availed as both working capital and term loan

• The loan amount that can be sanctioned under this scheme is from Rs.10 Lakh to Rs.5 Crore

• Candidates can avail a concession of up to 50% upon the upfront/processing fee

Eligibility Criteria for Canara Mahila Vikas

All women entrepreneurs are eligible to take a loan under this scheme to grow their business. Here are the eligibility criteria - 

• If the loan is being availed by a non-individual, a minimum of 51% share capital or units should be held by women

• In case of an existing business, it should have completed 2 years of business operations as well as a satisfactory track record with their existing banker

• If the loan is being availed by a new business, the bank should have satisfactory market opinions on the prospect of the project

• The minimum consumer CIC scores from any empanelled credit bureaus should be 650

How to Apply for a Canara Mahila Vikas Loan?

This loan can be directly availed from any branch of Canara bank. For more information about this scheme, you can take a look at the Mahila Vikas Loan page on the Canara Bank website.

5. IOB SME Mahila Plus 

The IOB SME Mahila Plus scheme is from the Indian Overseas Bank for the empowering of businesswomen. Here are some details about the scheme - 

• The loan can be taken to set up a factory/business premises, which can either be a manufacturing or service enterprise qualifying under Micro or Small enterprises 

• The loan money may also be utilized to upgrade the existing unit and purchase of equipment, machineries, computers, etc. 

• The loan can be sanctioned either in the form of term loan for fixed assets or cash credit for working capital

• Manufacturing enterprises can get a loan of up to Rs.2 Crore

• Service enterprises can get a loan of up to Rs.1 Crore

• The processing charges will be Rs.200 per Lakh, which can go up to a maximum of Rs.20,000

Eligibility Criteria for IOB SME Mahila Plus

The eligibility criteria for this loan are mentioned below -

• Candidate’s age should be between 21 to 50 years

• The candidate should be qualified (minimum Graduate), and candidates with technical qualification will be given preference. 

• Candidates may be professionals, who are working in any field

• A Proprietorship Concern or a partnership with women in the lead, as well as Private Limited companies with a woman as the Managing director / Director in a key position are eligible

• Existing units fully managed by a woman entrepreneur are also eligible under the scheme

• The candidate should be KYC compliant

• The candidate should not be in the RBI defaulters list

• The candidate’s CIBIL report should be satisfactory

How to Apply for a Loan Under the IOB SME Mahila Plus Scheme?

This loan can be directly availed from any branch of the IOB. For more information about this scheme, you can take a look at the IOB SME Mahila Plus PDF on the Indian Overseas Bank website.  

6. IND MSME Sakhi 

The Indian Bank launched their new product, IND MSME Sakhi, to encourage women who own small businesses. The top features of this scheme are as follows - 

• This loan can be availed by individual women who are members of a Self Help Group

• The loan amount can be used to set up manufacturing, servicing, or trading units

• The loan amount under this scheme can be between Rs.0.10 Lakh to Rs.4 Lakh

• There will be no processing charges under this scheme 

Eligibility Criteria for IND MSME Sakhi

The eligibility criteria for applying for a loan under this scheme are listed below - 

• Candidates should be members of a Self Help Group

• Candidates should have a satisfactory repayment track record for 2 years

• Candidates may have availed 2 rounds of finance from an SHG and repaid both (the second might be running)

• The candidate’s age should be between 18 and 65 years

How to Apply for a Loan Under the IND MSME Sakhi Scheme?

To avail a loan under this scheme, you can walk into any branch of the Indian Bank. You can also apply online by going to the IND MSME Sakhi Loan page and clicking on the ‘Apply for Loan’ button. 

7. UCO Roop Sangam 

The UCO Roop Sangam is an initiative of the UCO Bank for women entrepreneurs. Some features of this scheme are as follows - 

• This loan can be availed in the form of a term loan or a cash credit

• The maximum credit that can be availed under this scheme is Rs.10 Lakh, out of which working credit should not exceed Rs.3 Lakh

Eligibility Criteria for UCO Roop Sangam

The eligibility criteria for the UCO Roop Sangam scheme are listed here - 

• Candidate should be an individual owner of a unit, or, the maximum ownership in a firm should be that of women

• Candidates should be in the age bracket of 20 to 60 years

• A prospective candidate should preferably have working skill or experience in the intended field of business

How to Apply for a UCO Roop Sangam Loan?

You can easily apply for a loan under the UCO Roop Sangam by visiting a UCO Bank branch. To know more about this scheme, you can visit this page on the UCO Bank website.

8. Sakhi Shakti Loan 

The IDFC First Bank has their own scheme for encouraging women entrepreneurs. The features of the Sakhi Shakti Loan are as follows - 

• This loan has credit and savings solutions, simple documentation, and doorstep services that can be availed with it

• The loan amount that a candidate can get under this scheme is from Rs.23,000 to Rs.50,000

Eligibility Criteria for Sakhi Shakti Loan

Any woman entrepreneur with any basic identification, such as an Aadhaar card, is eligible for a Sakhi Shakti Loan.

How to Apply for a Sakhi Shakti Loan?

Since the IDFC First Bank gives doorstep service for this loan, you can get in touch with any field officer to apply for this loan. You can also visit your nearest bank branch for the same. For more details you can visit the Sakhi Shakti Loan page on the IDFC First website. 

moneyview Loans as Business Loans for women

If you want a quicker loan, or instant money to invest in your business, you can consider moneyview personal loans. We offer instant online personal loans that can be used for starting off or expansion of your business. 

Some features of the moneyview personal loans are as follows - 

• You can check your eligibility for a moneyview personal loan in just 2 minutes

• You can get a loan amount ranging from Rs.5,000 to Rs.5 Lakh

• These loans are collateral free, which means, you won’t have to pledge any asset or arrange a guarantor

• Interest rates are affordable, starting from just 1.33% per month

• The process of application is completely paperless

• You can repay the loan in easy installments, that can be anywhere between 6 months to 60 months

• Even if you have a CIBIL score as low as 600 or an Experian score of 650, you are eligible for this loan

• Once your loan application is filled, your loan amount gets disbursed within 24 hours, in most cases

Eligibility Criteria for moneyview Personal Loans

The eligibility criteria for a moneyview personal loan is very inclusive. If you are looking to use it as a business loan and are self-employed, the criteria are - 

• Your age must be between 21 and 57

• Your monthly in-hand income must be minimum Rs.15,000

• Your monthly income must be credited directly to your bank account

• Your CIBIL score must be minimum 600, or your Experian score must be minimum 650

How to Apply for a moneyview Personal Loan?

You can apply for a moneyview instant personal loan in just 4 easy steps. Take a look at them - 

Step-1: The first step is to check your eligibility. You can do it on the moneyview website in just 2 minutes.

Step-2: Next, you need to select the loan amount and the tenure, based on the options provided to you.

Step-3: Upload all the relevant documents so that they can be verified.

Step-4: After the documents have been verified, sign the loan agreement. Once that is done, the loan amount will be credited to your bank account within 24 hours in most cases.

Conclusion

Today, more than 20% of the MSMEs in India are owned by women. The government as well as the banks are eager to empower and encourage more women to step into their entrepreneurial shoes. 

Even for a private limited company, or a non-individual owned company, if more than 50% of the stakeholders are women, you are eligible for these schemes. These schemes are easy to avail, and are often subsidized by the government.

And in case, you need some extra cash instantly to invest in your business, you can always consider moneyview instant personal loans. Remember, if you get a loan from us in March, you can enjoy our special #ZeroEMIOffer as part of our Women’s Day celebrations! 

For more details, you can visit our website or download our app!