In light of the fact that women entrepreneurs are still a distant minority, the government of India and financial institutions are coming up with various business loan schemes for women. It is to exclusively promote women entrepreneurs and encourage entrepreneurial activities among women in India.
Start-up business loan for women is a type of exclusive credit facility to help women entrepreneurs meet and manage their finances during a cash crunch in the business. As a woman business owner, you can avail of this opportunity to cater to your business needs, such as buying new inventory, purchasing inventory, or even hiring new staff.
Here are the top 5 startup business loans for women:
- Business loan for women by Fullerton India
Fullerton India offers customized business loans for women. As a women entrepreneur, you can apply for a loan amount of up to Rs. 50 lakhs to meet your startup requirements. It enables you to access funds quickly to meet your business needs. Furthermore, you can avail of an affordable business loan interest rate based on your preferences. The best part is that you do not have to pledge your assets as collateral, and you will also get insurance cover for your loan. You can repay the loan amount within 12 months.
- The Stree Shakti Package by the State Bank of India
The Stree Shakti Package is a form of credit facility offered by the State Bank of India. It is specially designed to provide financial assistance to women entrepreneurs. You can avail of up to Rs. 500,000/- as a loan without declaring your assets as collateral. Compared to other loans, you can get a lower business loan interest if the loan amount is more than Rs. 200,000/-. Women entrepreneurs who own a minimum of a 51% stake in the business can apply for the Stree Shakti Package.
- Annapurna Scheme by the government of India
You are eligible to secure up to Rs. 50,000/- as a loan under the Annapurna Scheme, providing loans to meet short-term and small financial needs. This startup business loan scheme is ideal for women entrepreneurs in the agricultural sector. If you want to apply for a startup business loan for women under this scheme, you will need to visit the State Bank of Mysore and Bharatiya Mahila Bank.
The upside is that you will not have to pay EMI for the first month after getting the approval. However, you will only be allowed to secure up to Rs. 50,0000/-. It is suited if you need a higher loan amount. However, you can repay the loan amount in 36 months, allowing you to choose based on your needs. The disadvantage of opting for the Annapurna Scheme is that you will have to pledge your assets as security.
- Cent-Kalyani Scheme by Central Bank of India
Both new and existing women entrepreneurs can apply for business loans under the Cent-Kalyani Scheme. It is designed to cater to the needs of micro or small enterprises such as home delivery services and beauty parlors. This startup business loan for women can help women business owners meet their businesses’ day-to-day expenditure.
You can secure up to Rs. 1 crore under this scheme, and you do not need to pledge anything as collateral. However, the business loan interest rate is dependent on market rates. A golden piece of advice would be to assess your needs and your ability to repay the loan amount before applying for a loan.
- Bharatiya Mahila Bank Business Loan
It remains a product of Bharatiya Mahila Bank even after merging with the State Bank of India. It aims to offer credit facilities to women entrepreneurs who are starting new business ventures in the fields of retail, MICRO, and SMEs. If you have a manufacturing business, you can take up to Rs. 1 crore as a loan, and you can secure up to Rs. 5 crores if you have a retail and service business.
At times, the maximum loan amount under Bharatiya Mahila Bank Business Loan can go up to Rs. 20 crores with the business loan interest rates starting from as low as 10%. You do not need to submit collateral if you are opting for up to Rs. 1 crore. However, you will need to have a minimum of 2 years of work experience and two years of business continuity.
As a women entrepreneur, you can avail of the above-said business loan schemes to fund your immediate business requirements without putting any financial burden on your finances.