In recent years, India has seen a boom in the number of startups, and Indian women have not been left behind. A new generation of female entrepreneurs is tackling various industries, from travel, food, and beauty to IT, automobiles, and innovation. However, the lack of social and financial support can be a significant obstacle to launching new business ideas.
These government schemes will be of great help to women who are looking to become independent entrepreneurs.
Government Schemes for Women Entrepreneurs and Business Owners
The government offers financial assistance to women entrepreneurs through the following schemes:
- Mudra Loans for Women
- Stree Shakti Yojana
- Annapurna Scheme
- Bhartiya Mahila Bank Business Loan
- Dena Shakti Scheme
- Mahila Udhyam Nidhi Yojana
- Orient Mahila Vikas Yojana
- Cent Kalyani Scheme
- Synd Mahila Shakti Scheme
- Udhyogini Scheme
How to Register as a Woman Entrepreneur
The Niti Aayog has launched an initiative called the Women Entrepreneurship Platform (WEP) to improve the ecosystem for female entrepreneurs in India, whether they are struggling or aspiring to start a business.
Women Entrepreneurship Platform
In partnership with SIDBI, Niti Aayog supports this initiative, which is built on three core principles:
- Iccha Shakti (Power of Aspiration): A symbol of motivation for a new generation to become entrepreneurs.
- Gyan Shakti (Power of Knowledge): Represents the knowledge and ecosystem that supports women entrepreneurs in their efforts to start businesses.
- Karma Shakti (Power of Action): Provides hands-on assistance to eligible entrepreneurs to start and grow their businesses.
Registration Process
To register, visit the Women Entrepreneurship Platform website and fill out the online application form or self-register using your Google or Facebook ID.
Eligibility
The scheme is open to women who have recently started their startups, are in the ideation phase, or are owners of existing startups. Women entrepreneurs can receive support from corporations, NGOs, incubators, or anyone else willing to help.
Women’s Empowerment Loan Schemes
Stree Shakti Yojana
The Stree Shakti Package is a unique scheme that supports women’s entrepreneurship by providing certain concessions. Women who own the majority of their business are eligible to apply for the scheme. Additionally, women must enroll in the Entrepreneurship Development Program (EDP) provided by their respective state agencies. Women who successfully register under this program can benefit from a 0.05% interest reduction on all business loan over Rs. 2 lakhs.
Orient Mahila Vikas Yojana Scheme
The Orient Bank of Commerce launched a scheme for women who own 51% of the business capital in a joint or individual concern. Collateral is required for loans between Rs. 10 lakhs and Rs. 25 lakhs. The loan sanctioned can have a repayment period of up to seven years. This scheme offers additional benefits with interest rates reduced by up to 2%.
Cent Kalyani Scheme
Cent Kalyani is open to both self-employed women and new entrepreneurs. This scheme supports micro-entrepreneurship in areas such as farming, agriculture, cottage industries, and other small businesses like retail trade. The loan does not require a guarantee or collateral bond. The interest rate is market-determined, and the maximum repayment period is seven years.
Dena Shakti Scheme
The Dena Shakti Yojana is a loan scheme for women entrepreneurs working in agriculture, manufacturing, small businesses, or retail stores. The scheme offers financial support of up to Rs. 20 lakhs with additional benefits such as a 0.25% interest rate concession. Women can also get micro-credits up to Rs. 50,000.
Annapurna Scheme
The government provides loans of up to Rs. 50,000 for women in the catering or food sector. This amount can be used for marketing, advertising, and purchasing tools and equipment needed to run a business. The loan can be repaid in 36 monthly installments, with the first month exempt from EMI.
Mahila Udhyam Nidhi Yojana
Offered by Punjab National Bank and SIDBI, the Mahila Udhyam Nidhi Yojana provides loans of up to Rs. 10 lakhs to help new women entrepreneurs start small businesses. The repayment period is 10 years.
Mudra Loans for Women
The Indian government launched the Mudra Loan Scheme to support emerging women entrepreneurs. This scheme is open to a wide range of businesses, including beauty salons, tailor shops, tuition centers, and retailers. The loan does not require collateral. There are also categories to help applicants apply for the loan based on their business structure:
- Shishu Loan: For businesses in the initial stage, with a maximum loan amount of Rs. 50,000.
- Kishor Loan: For established businesses looking to improve and develop their structure. The loan amount ranges between Rs. 50,000 and Rs. 5 lakhs.
Mahila Vikas Nidhi Scheme
SIDBI provides loans of up to INR 10 lakhs for financial assistance to women entrepreneurs and SMEs. This loan can be used for establishing a manufacturing or service company. The credit moratorium may be extended by up to 5 years, and debt service can continue for up to 10 years. The loan can also be used for modernizing and improving existing production and manufacturing equipment and for further developing technologies in the service sector.
The Mahila Udhyam Nidhi offers loans of up to 25% of project costs, or Rs. 2.5 lakhs per project. SIDBI offers loan services, not loans. Interest rates vary depending on the institution, and banks are required to charge a 1% annual processing fee for this women’s lending program. Some lending institutions waive the fee.
Bhartiya Mahila Bank Business Loan
The Bharatiya Mahila Bank offers loans of up to Rs. 20 crores for women who own manufacturing companies. The bank provides special business loan for women at favorable interest rates and collateral-free loans of up to Rs. 1 crore, covered under the CGTMSE policy. Bharatiya Mahila Bank has become a subsidiary of the State Bank of India (SBI), and interest rates for business loan are controlled by SBI and the Central Bank of India.
List of Loans Offered by Bharatiya Mahila Bank:
- BMB Shrinagar
- BMB SME Easy
- BMB Annapurna
- BMB Parvarish
Documents Required for Cent Kalyani Scheme
To apply for the Cent Kalyani Scheme, you will need the following documents:
- Identity Proof:
- Voter ID
- Passport
- Driving License
- PAN Card
- KYC documents
- Address Proof:
- Phone bill
- Property tax receipt
- Electricity bill
- Proof of Income:
- Balance Sheets
- Profit and Loss Account
- Other financial documents
- Business Proof:
- Business Profile
- Letters of Interest, Understanding, and Continuity
What Type of Business Can an Entrepreneur Open?
Women can now run nearly any type of business that men can. Women are involved in a variety of businesses, including personal care products, skincare, handicrafts, art, clothing and apparel, jewelry, accessories, and freelancing.
Can Women Run a Business Side-by-Side from Home?
Absolutely! I highly recommend that any woman starts something small at home. Women are now present in nearly every sector, with many becoming pioneers in entrepreneurship. Start by doing some research on your business and product idea. Best of luck!
Conclusion
India’s economic and social growth will not continue without the empowerment of women entrepreneurs. The various government schemes and initiatives offer much-needed financial assistance, enabling women overcome barriers and realize their entrepreneurial dreams. Women can use these resources to not only start and grow their business, but also to contribute towards a more diverse and inclusive economic landscape. The opportunities for women to launch small businesses from home, or large enterprises are numerous, and there is support available. Women can be successful entrepreneurs with the right support, creativity and determination.
Dariel Campbell is currently an English instructor at a university. She has experience in teaching and assessing English tests including TOEFL, IELTS, BULATS, FCE, CAE, and PTEG. With over a decade of teaching expertise, Dariel Campbell utilizes his knowledge to develop English lessons for her audience on English Overview.
