Business Loans

All About Small Business Loans For Women In India

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Women are not falling behind males in any way in the twenty-first century. More women are entering the corporate field in order to earn more money. To enhance the number of female entrepreneurs, many programmes are in place that offer low-interest business loans and teaches them how to apply for a business loan.

Entrepreneurship ventures or startups are no longer regarded as novel business ideas in India. To support the continued expansion of entrepreneurial endeavours, the leading commercial and governmental sector banks, as well as non-bank financial organisations (NBFCs), have developed a variety of business loans for women.

Let’s have a look at the top online business loan options for women entrepreneurs in India, each with a competitive and favourable interest rate.

  • Cent Kalyani from the Central Bank of India

The Central Bank of India provides loans for women for business and startup loans to female entrepreneurs looking to establish a new firm, or grow or modify an existing one.

  • 7.50 – 7.75% annual interest rate
  • To satisfy everyday needs such as the acquisition of plant and machinery/equipment and working capital expenses.
  • The Loan’s Characteristics: Working capital based on term loan funds — letters of credit/guarantees, etc.
  • Maximum loan amount: Rs. 100 lakhs
  • There are no transaction fees.
  • Women entrepreneurs that provide services to the rural and cottage industries, MSMEs, and working in agriculture, retail, and government-backed companies may all apply for a business loan.
  • MUDRA Loan

The MUDRA Yojana, launched in 2015 as part of the Pradhan Mantri Mudra Yojana (PMMY), is a loan programme provided by the banks to individuals, startups, company owners, and women entrepreneurs throughout India. This scheme provides loans of up to Rs. 10 lakh to women who wish to establish or grow a company. The three loan alternatives are Shishu, Kishor, and Tarun. The following are the key aspects of Mudra Yojana lending programmes offered by banks and NBFCs:

  • Women entrepreneurs may be eligible for preferential financing rates.
  • Loans with no collateral: Banks and NBFCs do not demand any collateral or security.
  • Loan Type: Term Loan/Overdraft Loan
  • The maximum loan amount is Rs. 10 lakh, and there is no minimum loan amount.
  • Repayment time frame: up to 5 years
  • Processing fee: 0 to 0.50% of the loan amount sanctioned
  • Indian women in both urban and rural areas may apply for loans.
  • Shringaar and Annapurna Loan Schemes from Bhartiya Mahila Bank (SBI)

The Bhartiya Mahila Bank merged with SBI recently, and it provides a variety of small business loans for women entrepreneurs to support them to establish or develop their current enterprises. Shringaar and Annapurna are two popular choices in this region.

  • The Shringaar loan programme is for women who want to build beauty salons.
  • The Annapurna loan programme is for women who want to open a food catering company and sell lunch packs.
  • Under this plan, they may be eligible for a loan of up to Rs. 50,000, which must be returned in 36 monthly instalments. The market determines the interest rate.
  • The first month’s EMI will be waived. This loan may be used to buy kitchen equipment including cutlery, gas lines, raw ingredients, and water filters.
  • You’ll need to put up your company’s assets as collateral for this loan, as well as a personal guarantee from a guarantor.
  • The age range is from 18 to 60 years.

Conclusion

Loans makes low-interest business loans that women need and makes them readily available to female entrepreneurs. The loan money may be utilised for a variety of commercial goals, including growing your business, acquiring other businesses, purchasing high-value and obtaining new machinery or equipment, and so on. Loans Company Loans are collateral-free, which means you do not have to put up any of your assets as collateral to get business cash. Loans can present you with pre-approved ideas for a quick loan with no security when you apply for a business loan online.

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