Our patriarchal society and lack of social support from their own families and friends are the most common reason for the majority of women’s inadequacy of financial capital which in turn has been a major roadblock on their entrepreneurial journey.
The government of India has taken various steps to motivate and encourage women entrepreneur and build up their social status. Here is, a list of eight schemes introduced by financial institutions in India, including nationalised banks, that all women entrepreneurs should be aware of-
The Government of India under the Annapurna scheme, provides women entrepreneurs in the food catering business, with loans to the maximum of Rs. 50,000. The Bank of Mysore and Bharatiya Mahila Bank currently offer this scheme. The loaned amount can be utilised for requirements such as working capital, buying utensils and other items to run a small catering business. To avail loan, a guarantor is required and the assets of the business will have to be pledged as collateral. Once a loan is sanctioned, the repayment is to be done in 36 monthly instalments, which begins after the first month. The interest rate depends on the market rate and the concerned bank.
The Stree Shakti Package by SBI is run to support women entrepreneurship by providing certain concessions. Women entrepreneurs who have majority ownership of over 50% in a small business is entitled to this scheme. They have to be registered in the Entrepreneurship Development Programmes (EDP) organised by their respective state. Interest concession of 0.05% on loans exceeding Rs. 2 lakhs, is given and no security is required for loans up to Rs.5 lakhs for tiny sector units.
This scheme is run by Central Bank of India for both existing and new entrepreneurs and self-employed women for micro and small enterprises for agriculture, cottage industries, small and medium enterprises, government-sponsored programs and retail trade. Under this scheme, loans up to Rs. 1 crore can be sanctioned, without any collateral security or guarantors. Interest on loans depends on market rates. The loan tenure will be a maximum of seven years including a moratorium period of 6 months to 1 year.
It is offered by nationalised banks under the Pradhan Mantri Mudra Yojna, for women entrepreneurs who wish to set up small units like a beauty parlour, tuition centre, tailoring unit, etc. The loan between Rs. 50,000 – Rs. 50 lakhs are sanctioned under this scheme. No collateral and guarantors are required for loans below Rs. 10 lakhs. This scheme has three plans:
This scheme by Punjab National Bank and Small Industries Development Bank of India (SIDBI), supports women entrepreneurs to set up a new small-scale venture by extending loans up to Rs. 10 lakh to be repaid in 10 years. SIDBI also includes a 5 year moratorium period. The interest depends upon the market rates. SIDBI offers different plans for beauty parlours, daycare centres, purchase of auto-rickshaws, two-wheelers, cars, etc. It also assists with upgrading and modernisation of existing projects.
This scheme provides loans up to Rs. 20 lakh for women entrepreneurs in agriculture, manufacturing, micro-credit, retail stores, or small enterprises. It also provides a concession of 0.25% on the rate of interest.
This scheme by Oriental Bank of Commerce is for women entrepreneurs who hold a 51% share capital individually or jointly in a proprietary concern. No collateral security is required for loans between Rs. 10 lakhs – Rs. 25 lakhs for small-scale industries with a concession of 2% in interest rate. The repayment period is 7 years.