Government Loans For Women To Start Business

05 January, 2024

Building a business and watching it scale is perhaps every entrepreneur’s dream, irrespective of their gender. In the past decade, many women-run businesses have come to the fore. Women entrepreneurs have built several businesses from the ground-up, which are thriving in what was once considered a male dominated arena. One of the reasons women have been successful in taking their enterprises to greater heights is due to the availability of various government loans for women to start business. Let us learn a little more about these loans and their different types in this article.

Government Loans For Women Entrepreneurs

Government loans for women are specifically designed to provide entrepreneurial women the necessary, early financing enabling them to start or build a business. The Government of India has introduced a variety of loan schemes which women entrepreneurs can obtain at attractive interest rates. Plus, they can apply for the loan easily and repay it in flexible tenures. The idea behind this initiative is to empower women to turn their business ideas into reality and create employment opportunities.

Government Loans For Women to Start Business

Some of the most obtained loans for ladies from the government include the following:

• Pradhan Mantri Mudra Yojana
  
  The Pradhan Mantri Mudra Yojana Loan for Women is a government scheme designed to allow women to embark on their entrepreneurial journey and be self-sufficient. The government, in association with major Indian banks, provides this loan to women without any collateral.
  
  At HDFC Bank, we offer Government Sponsored Program Loans with a minimum loan amount of ₹ 1 lakh 50 thousand and maximum of ₹10 lakhs.
  
  So the loan amount applicants can get depends on the category they belong too, from the three defined categories: 
  
  
  • Shishu Loan: Under this category, applicants can get a maximum loan amount of ₹50,000 if their business is in its initial stage.
    
    
  • Kishor Loan: Women who have already established their business and wish to upgrade it can apply for a Kishor Loan ranging from ₹50,000 to ₹5 lakhs.
    
    
  • Tarun Loan: The government grants this loan to businesses that are well established and looking at expansion. Such applicants can avail of loans above ₹5 lakhs and upto ₹10 lakhs.
    
    
• Annapurna Scheme
  
  The Annapurna Yojana by the government is especially designed for women looking to build a business in the food catering space. Such women can avail of loans of up to ₹50,000 to begin their entrepreneurial journey. Under this government loan for women, applicants can enjoy a waiver on their first month’s Equated Monthly Instalment (EMI) of the loan. Plus, they may repay the loan flexibly over a period of 36 months in EMIs. Like most welfare loan schemes, the interest rates of the Annapurna loan scheme tend to be low and the government enables the lending banks to determine the same.
  
  
• Stree Shakti Yojana
  
  The Stree Shakti Yojana is yet another government loan for women designed to empower women entrepreneurs to obtain the necessary funding for their businesses. This unique scheme launched by the government enables women, who own a majority portion in a business, to enjoy various concessions. Such applicants must mandatorily enrol under the Entrepreneurship Development Programme (EDP) organised by their respective states. Applicants under the Stree Shakti Yojana, applying for loans above ₹2 lakhs, may obtain loans with a 0.05% on the interest rate.
  
  
• Udyogini Scheme
  
  Launched by the Women Development Corporation, the Udyogini scheme provides loans at subsidised interest rates to aspiring women entrepreneurs, especially those from India's rural and underdeveloped pockets. The primary objective of this government loan for women is to promote women entrepreneurship in India, and to empower women from the rural parts of the country to become financially empowered and self-reliant. To be eligible for this loan, applicants should have an annual family income of less than ₹1.5 lakhs. They can obtain loans of up to ₹3 lakhs under this scheme.
  
  Government loans for women play an important role in women's economic empowerment. These loans enable women to become self-sufficient, and be financially independent, thereby reducing their dependence on the male members of their families. At HDFC Bank, we offer a wide range of Government-launched financial schemes and loans for women. Eligible applicants can visit us online or reach out to our representatives to know more about the loan processes and documents required and get the necessary financing for their businesses.

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.