To make the Indian economy grow consistently by 9 to 10 percent in the next three decades, we must work towards creating ecosystems that support all kinds of women entrepreneurs. However, according to the Sixth Economic Census, only about 14 percent of women in India own businesses.
The problem of low female entrepreneurship rates is attributed to the lack of business funding for women. But the good news is that there are many initiatives by the government and independent financial firms that will provide loans for women to start a business in India.
Let’s understand how business funding for women works.
Government Loan for Women
Here’s a brilliant business loan scheme by the Indian government:
PMRY – PMRY stands for Prime Minister Rozgar Yojana which is a great source of funding for women that extends a loan of up to Rs 5 Lac to unemployed young women, uneducated homemakers, and students to start a business. The eligibility age for women is 18 to 45 years.
Government Sector Bank Loans for Women to Start a Business
Government sector funding for women is feasible since they usually have longer repayment periods and a lower rate of interest. However, women prefer non-government loans to avoid backing up their appeal with multiple documents which may lead to increased paperwork.
Here are the top government sector bank loans for women:
- Stree Shakti Package for Women Entrepreneurs –Offered by most of the SBI branches, this scheme is available to women who have a 50% share in the ownership of a business or have participated in EDP (Entrepreneurship Development Programmes) run by state agencies. The scheme also discounts the rate of interest by 50% on business loans for women if the loan amount is more than Rs 2 Lac.
- Dena Shakti Scheme –Under this scheme, Dena bank offers business loans for women in the field of manufacturing, agriculture, small enterprises, and retail stores.
- Cent Kalyani Scheme –Cent Kalyani Scheme offers small business loans for women who are either self-employed or involved in cottage and village industries, small and medium enterprises, agriculture, retail trade, or government-sponsored programs.
- Mahila Udyam Nidhi Scheme –Launched by Punjab National Bank, this scheme offers business funding for women that can be repaid within 10 years. It has different plans for daycare centres, beauty parlours, purchase of two-wheelers, cars, auto-rickshaws, etc.
Business Grants from International Organisations and NGOs
There are a number of international organisations that offer small business grants for women. If you’re a social entrepreneur or your startup business has a social motive, you can apply for grants from international organisations. Understand them below:
- The Ashoka Fellowship –If you have innovative ideas that can improve lives and transform the society, you can apply for the Ashoka Fellowship. For entrepreneurs committed to social good, it offers a tailored stipend for up to 3 years.
- Skoll Foundation –Skoll Foundation supports large-scale change by offering grants to social innovators and entrepreneurs. It also connects social entrepreneurial organisations across the world.
- Ford Foundation – The Ford Foundation offers grants to entrepreneurs as well as organisations for several needs.
Non-Government Entrepreneurs Loan
Non-government or personal loans are a great source of business funding for women. Personal loans vary in terms of interest and repayment periods. But a great advantage about them is that you do not need to present collaterals such as your car, home, business, or any valuable property.
You can get a personal loan from an accredited financial firm, a bank or an online lender where you have to pay fixed monthly instalments. If you have a fixed source of income or good credit history, personal loan for business is a great option.
Business Funding for Women through MoneyTap
MoneyTap is India’s first personal credit line that boasts an easy application process, minimum documentation, and quick approval. It offers a credit line of up to Rs 5 Lac and allows small withdrawals as per your business requirements. However, these are not the only features that make MoneyTap popular; another great advantage is that it requires you to pay interest only on the amount used.
Small business loans for women through MoneyTap can be availed of easily. All you have to do is download the app, enter your KYC details, and make a request to get instantly approved. Download the app today and bring your entrepreneurial dream to reality.
Happy women’s day!