Given that women entrepreneurs are still a minority in India, the government, banks, and non-banking financial institutions are coming up with various SME loans to help women access funds and maintain their business cash flow. Such SME schemes are primarily designed to promote women entrepreneurs and encourage entrepreneurial activities among women.
An SME loan for women is a type of credit facility that enables women to manage their finances during a cash crisis. Whether you need to buy new stock, purchase production equipment, expand the office, or pay for new workers, a loan for SME can cater to all your business needs. The best about an SME loan for women is that it comes with lower interest rates and flexible loan tenure compared to other loans in the market.
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Here are some of the small business loans for women in India:
Muthoot FinCorp Small Business Loans
Muthoot FinCorp has multiple SME loans to help small business owners meet their requirements. For instance, you have EDI loans, EMI loans, Banking Surrogate Programme, and Financial Income-Based Program. The unique part of applying for an SME loan through Muthoot FinCorp is that you have access to flexible repayment options at your doorstep under the EDI scheme. You can get loans amounts ranging from Rs. 15000/- to Rs. 800,000/- at affordable interest rates.
The Stree Shakti Package
It is a type of SME loan for women offered by the State Bank of India. As the name suggests, it provides financial assistance to women entrepreneurs. It enables women to access up to Rs. 500,000/- as a loan. The best part is that you do not have to provide anything as security. You can avail a lower interest rate if you are opting for a loan amount of Rs. 200,000/- or more. It is a type of loan for SMEs available for women who own a minimum of a 51% stake in the business.
Annapurna Scheme
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It is a type of loan offered by the government of India to help small businesses run by women. Under this loan for SMEs, you can secure up to Rs. 50,000/- as a loan. The Annapurna Scheme is ideal for women entrepreneurs in the agriculture sector. To apply for this loan, you will need to visit the State of Bank of Mysore and Bharatiya Mahila Bank.
The upside of applying for this type of loan for SMEs is that you do not have to worry about EMI payment for the first month after getting the approval. You can get up to Rs. 50,000/- as a loan. Lenders gives applicants the option to repay the loan within 36 months from the date of approval. It is worth pointing out that applicants will have to pledge an asset as collateral to get funds for the business. So, before applying for a loan, make sure to assess your needs and apply for a loan amount you can afford to pay on time.
Cent-Kalyani Scheme
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It is a small business loan offered by the Central Bank of India to cater to the needs of micro or small enterprises, such as home delivery services, beauty parlors, etc. It helps women business owners to meet their businesses’ day-to-day expenditures. As a borrower, you can obtain up to Rs. 1 crore, and the best part is that you do not have to pledge your asset with considerable value as collateral. Keep in mind that the interest rate depends on factors such as your business income, business profile, and credit score. Before applying for a loan, make sure to evaluate your financial situation.
Bharatiya Mahila Bank Business Loan
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As the name suggests, it is a product of Bharatiya Mahila Bank even after merging with the State Bank of India. It is a type of loan for SMEs and particularly aims to offer credit facilities to women entrepreneurs starting new business ventures in retail, micro, and SMEs. The maximum loan amount you can get is Rs.1 crore if you have a manufacturing business or 5 crores if you have a retail business.
Sometimes the maximum loan amount can go up to Rs. 20 crores and the interest rates starting from 20%. It is an unsecured loan which means that there is no need to provide anything as security to the lender. It is imperative to have a minimum of two years of work experience and two years of business continuity.
Conclusion
If you are a women entrepreneur and require funds to meet business requirements, you can benefit from several SME loans offered by banks and non-banking financial companies in India. The benefit of these loan schemes is that they come with affordable interest rates and flexible loan tenure.
