Attractive Business Loans for Women Entrepreneurs

Are you a woman entrepreneur who is looking out to start something of your own? How are you planning to fund your business? Which are the right banks or lenders you need to approach for implementing your start-up or expansion plan? What unique offerings do the current financial institutions have for you? You will find answers to all these questions here.

Settlement Loan

Business Loans for women entrepreneurs are available with attractive features such as discounted interest rates, collateral-free loans, waivers of processing fees, relaxed eligibility parameters, etc. Various customised loans like ICICI Bank’s stand up India, Business Loans from Bajaj Finserv, HDFC Business Loans are available for encouraging women in India who wish to pursue their career path.

A few attractive Business Loans for Women Entrepreneurs have been discussed below.

1. Dena Shakti by Dena bank

Dena Shakti encourages female entrepreneurs to engage in business activities by extending business finance.

Eligibility- The loan can be availed by enterprises wherein greater than 50% of the share is held by women.

Purpose of Dena Shakti loans- As a female entrepreneur, you may avail such loans for any of the below engagements. 

  • Setting up manufacturing units
  • Sales and services related business
  • Retail trade
  • Education enterprises
  • Micro credit and retail stores
  • Enterprises operational in agriculture and allied sectors.

Amount of loans- The limits to which such loans may be availed are as follows.

  • Up to an amount of Rs. 20 Lakh for housing, education, and retail trade.
  • A limit of Rs. 50,000 for micro-credit schemes

Tenure of the loan- Loan may be extended to you for any period depending on the loan amount and various other factors on the basis of which the loan is sanctioned. 

Interest rate-

  • If you are a female entrepreneur with more than 50% share in the business, you may avail such loans at 0.25% less than base rate applicable to other loans.
  • Processing fees may be waived off or be applied at a rate depending on the loan amount and a host of other factors.

2. Stree Shakti Package from State Bank of India

Eligibility- SBI Business Loan for Women is available only if a female is the owner of more than 50% stake in a business. Such loans are extended to women entrepreneurs satisfying the below criteria.

  • Age of the applicant ranging from 18 to 55 years.
  • Project plan is in place
  • Adequate documentation is required 
  • Proof of no or low income

Amount of loan- The maximum amount of loan that can be availed under the said scheme is restricted to Rs. 50 Lakh.

Tenure- The loan tenure may vary depending on the applicant, loan amount, and such other factors which bank may deem fit.

Interest rates- Such loans are generally extended with the below-mentioned features.

  • Base rate is fixed
  • You may avail of a concession of 0.50% if the amount of loan exceeds Rs. 2 Lakh
  • Interest discounts cannot be provided if funds are availed for retail traders.
  • Margin may be lowered by 5% to specific pre-defined categories.
  • Processing fees on such loans may stand waived off. They may also be applicable depending on the amount of loan.

Requirement of security- You may not need any collateral for an amount of less than Rs. 5 Lakh.

3. Cent Kalyani by Central bank of India

Central Bank of India offers attractive loans to women entrepreneurs in India. The key features of this loan are as follows.

Eligibility- Women over 18 years of age. There is no income criteria specification.

Purpose- Loans under this scheme are offered to encourage female entrepreneurs for promoting start-ups, expansions as well as alterations of already existing businesses.

Business requirements-Funds raised through Cent Kalyani may be used by women entrepreneurs for meeting both fixed as well as working capital requirements. 

For what kind of business can such loan be availed- Cent Kalyani is available for women who engage in business of the below categories.

  • Female entrepreneurs engaging in manufacturing activities like food- processing or handicrafts.
  • Women self-employed with STD booths, tailoring stations, food supply works, etc.
  • Professionally qualified women like Doctors, CAs, fashion designers, etc. can also avail of such loans.
  • Females who work in rural and cottage industries.
  • Women farmers and retailers.

Amount of loan- You can avail a maximum amount of Rs. 1 Crore under this loan facility.

Tenure- The loan tenure may vary from 1 to 7 years.

Interest rate- Interest rates applicable on such loans are as follows.

  • Loan amount up to Rs. 10 Lakh- MCLR + .25%
  • Loan of an amount from Rs. 10 Lakh to 1 Crore- MCLR + 0.50%
  • An account rated by any external agency can claim further interest deduction of 0.25%
  • Processing charges are not applicable to Cent Kalyani Loans.

Collaterals- 

  • Such a loan does not require any third-party guarantee.
  • If assets are created from funds generated by such loan, those assets are held as securities with the bank.

4. Annapurna Loan from Bhartiya Mahila Bank

Bharatiya Mahila bank is one of the first banks in India to provide financial aid to promote women-led business units. These online loan products are designed to promote women-centric vocations or occupations. 

Eligibility criteria- Any woman applicant with age ranging from 18 to 60 years may avail of this loan facility.

Who can avail of this loan facility– You may avail this loan if you are a woman who wants to start off catering business or food providing service.

What can the funds be used for? Funds raised from such loans may be used for purchasing kitchen equipment, water filters, utensils and other products which may be required for running catering business smoothly.

Loan tenure- This is a term loan by nature. It may be availed of for a maximum period of 3 years.

Amount of loan- CGSTSM scheme allows granting a loan of up to Rs. 50,000 to Rs. 5,00,000 without any collateral.

Applicable interest- 

  • Interest rate of base rate plus 1.5% shall be applicable for availing of such loan.
  • Processing fees applicable to such loan may vary depending on the norms established by the bank.

Requirement of collateral- A guarantor is required for availing of this kind of a loan.

5. SyndMahila Shakthi from Syndicate bank

Eligibility criteria- Women entrepreneurs with existing business set up or those intending to set up new ventures may avail of this loan facility.

  • Knowledge and experience of the woman entrepreneur is an important consideration while seeking approval for such a loan.
  • Such loans are generally extended to enterprises running as partnerships in which one or more women own more than 51% of the stake.

Purpose of loan-

  • Loan may be extended as a term loan for meeting the fixed capital expenses.
  • Cash credit facilities may be also be used for meeting working capital requirements of the business.

Amount of loan- Maximum amount of loan being extended under the said scheme is Rs. 5 Crore.

Loan tenure- Loan may be availed for a maximum period of 10 years. This includes the moratorium period. 

Interest rate and associated expenses- 

  • Interest rate is applicable at the base rate for a loan lower than Rs. 10 Lakh.
  • At a concession of 0.25% where the amount is greater than 10 Lakh.
  • Processing fee is completely waived off for such loans.

Requirement of collateral- Third party guarantee is not required for such a loan. This type of funding falls under the purview of CGMSE.

Additional offering- Loan of this nature comes in with a free Credit Card for the applicant.

6. Udyogini by Punjab & Sind bank

This is special Business Loan product designed by Punjab and Sind bank for female entrepreneurs.

Eligibility- Any partnership, private company, co-operative society in which the combined holding of one or more women is more than 51%.

Purpose of loan- These loans may be availed for capital assets in the form of term loan or for financing the working capital requirements of a business. Such a loan may be availed for,

  • Agricultural activities
  • Retrial traders
  • Tiny SSIs
  • Business enterprises
  • Professional women

Loan amount- The amount of loan would depend on the purpose and is to be assessed on a case to case basis. 

Rate of interest-

  • Interest is applicable as per rates prescribed by Ministry of Micro, Small and Medium enterprises.
  • Processing and upfront fees are completely waived off.

Collateral requirements- 

  • Security or guarantee is not required for a loan amount up to Rs. 25,000. Lien would be established on assets created out of loan fund.
  • If the loan amount is greater than Rs. 25,000, it would require the below as collaterals.
    • Hypothecation of assets created out of loan money.
    • Third-party or spouse guarantee.
    • A fixed asset as security worth of which is double the amount of loan sought.

Leave a Reply

Your email address will not be published. Required fields are marked *