Government Schemes for Women Entrepreneurs

Increased participation of women in the workforce has led to significant economic growth. The World Bank report further underscores this by reporting how GDP of India could boost by 1.5 percentage points to 9% per year, if 50% of the women population join the workforce.

Besides, the Government of India has stepped up by introducing loan schemes for women. These schemes will be quite helpful for women entrepreneurs in getting the financial assistance required for their journey. Let's have a look at the government schemes for women entrepreneurs in India.

Here’s a list of government schemes for women entrepreneurs:

• Mudra Loan for Women

• Annapurna Scheme

• Stree Shakti Yojana

• Dena Shakti Scheme

• Bhartiya Mahila Bank Business Loan

• Mahila Udyam Nidhi Yojana

• Orient Mahila Vikas Yojana Scheme

• Cent Kalyani Scheme

• Udyogini Scheme

• Pradhan Mantri Rozgar Yojana

• Synd Mahila Shakti Scheme

The government schemes for women entrepreneurs are discussed in detail as below: 

1.Mudra Loan for Women

Mudra Loan for Women was launched by the government on April 8, 2015 as a loan scheme to offer financial support for enthusiastic women entrepreneurs. The loan is for women who come up with business plans like starting a beauty parlour, tuition centre, stitching shop, etc. This scheme does not require any collateral to grant the loan. However, there are categories under which a Mudra loan application can be applied. They are as follows:

• Shishu Loan: The maximum loan amount granted to businesses in the initial stage is ₹50,000. 

• Kishor Loan: This loan is for businesses that are already established but wish to improve services. The amount of loan granted varies from ₹50,001 up to ₹5 Lakhs.

• Tarun Loan: This loan is for well-established businesses planning to expand their reach and is short on capital; they can get from ₹5,00,001 up to ₹10 Lakhs for the purpose.

2. Annapurna Scheme

The Annapurna Yojana is yet another government scheme for women launched on 1st April, 2000 . Through this, the Government of India offers women entrepreneurs loan schemes in food catering businesses that go up to ₹50,000. The borrowed amount could be used for working capital requirements such as buying utensils, mixer cum grinder, hot case, tiffin boxes, working table, etc. 

After the loan is approved, the lender doesn't have to pay the EMI for the first month. Once sanctioned, the amount has to be repaid in 36 monthly installments. The interest rate charged is determined based on the market rate and the concerned bank.

3. Stree Shakti Yojana

The Stree Shakti package is a unique government scheme for women launched in October 2000 that supports entrepreneurship by providing certain concessions. This woman loan scheme is eligible for women who have the majority of ownership in the business. Another requirement is that these women entrepreneurs be enrolled under the Entrepreneurship Development Programme (EDP) organised by their respective state agencies. This Stree Shakti scheme allows women to avail of an interest concession of 0.05% on loans more than ₹2 lakh.

4. Dena Shakti Scheme

The Dena Shakti Scheme provides loans up to ₹20 lakh for women entrepreneurs schemes in agriculture, manufacturing, micro-credit, retail stores, or small enterprises. This government scheme for women also provides a concession of 0.25% on the interest rate. In addition, women entrepreneurs can avail of a loan of up to ₹50,000 under the microcredit category.

5. Bhartiya Mahila Bank Business Loan

Implemented by The Bhartiya Mahila Bank (BMB), this is a public sector banking company that offers loans schemes for women entrepreneurs up to ₹20 Crores for working capital requirements, business expansion, or manufacturing enterprises. Some of the different plans under this woman loan scheme includes:

• Shringaar

The BMB Shringaar loan applies to self-employed women or homemakers planning a start-up or meeting their daily business expenses. The loan doesn't require you to provide any collateral security.

• Parvarish

Similarly, the BMB Parvarish loan is for self-employed women or homemakers to set up day-care creches. The upper limit of this loan can be ₹1 Crore without any collateral security under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGSTSM) scheme.

• Annapurna

Between 18 to 60 years, food entrepreneurs wanting to start or expand their small businesses can avail of this loan. Its features are similar to that of the State Bank of Mysore's Annapurna scheme, minus that it does not require collateral security.

6. Mahila Udyam Nidhi Yojana

One of the most popular government schemes for women entrepreneurs, the Mahila Udyam Nidhi Scheme, is offered by Punjab National Bank and Small Industries Development Bank of India (SIDBI). The scheme supports women entrepreneurs to set up a new small-scale venture by extending loans up to ₹10 lakh to be repaid in 10 years. The rate of interest charged depends upon the market rates.

7. Orient Mahila Vikas Yojana Scheme

Oriental Bank of Commerce launched the scheme, women with an ownership of 51% share capital individually or jointly in a proprietary concern can avail a loan through the Orient Mahila Vikas Yojana. There is collateral required for loans between ₹10 lakhs to ₹25 lakhs. The repayment tenure of the loan is 7 years. Orient Mahila Vikas Yojana Scheme also provides a concession on the interest rate of up to 2%.

8. Cent Kalyani Scheme

The Cent Kalyani Yojana is a government scheme for women that can be availed by both existing and new entrepreneurs and self-employed women. Micro/small enterprises like farming, agriculture, cottage industries, and retail trade are all eligible to apply for the Cent Kalyani Scheme. You do not have to provide any collateral as security or need any guarantors for this loan. The interest rate on loans depends on market rates. The repayment tenure of the loan will be a maximum of 7 years.

9. Udyogini Scheme

The Women Development Corporation has implemented the Udyogini Scheme under the Government of India. This scheme promotes and motivates women's entrepreneurship among the poor by providing financial support to women. This scheme majorly supports and helps illiterate women living in rural and backward areas.

10. Pradhan Mantri Rozgar Yojana

The objective of Pradhan Mantri Rozgar Yojana (PMRY), one of the various government schemes for women, is to provide opportunities of self-employment to the educated young people of the country. Initiated in 1993, the scheme provides the unemployed Indian youth a loan amount to commence their personal business project and subsequently create scope of employment for others. 

Just a few of the approved business segments for which the government scheme provides financial backup include manufacturing, trade, services, etc., you can avail a loan up to ₹1 Lakh without having to provide any collateral. The tenure for repaying the loan ranges from 3 to 7 years.

11. Synd Mahila Shakthi Scheme

Syndicate Bank has introduced a scheme known as the “Synd Mahila Shakthi Scheme” with an aim to support women’s entrepreneurship development. Under this plan, the bank offers financial backup to those women entrepreneurs and professionals involved in small business, retail trade, or self-employed through its credit facilities.

The objective of this government scheme for women is to promote economic empowerment of women by supporting them with business loans to meet their need for working capital or expansion of business. You can initiate as well as modernise your existing business by availing a loan of a maximum of ₹5 Crores with a concessional interest rate.

The minimum interest rate is 10.25% which is applicable for loans up to ₹10 Lakhs, and no collateral is required. Concession is offered at 0.25% for loans above ₹10 Lakhs, and there is no processing fee.

To come up with solutions to the challenges faced by women entrepreneurs in the country, it is crucial to first identify what they are. Once these challenges have been identified, then you can look to solve them through the various government schemes for women. Here’s an overview of some of the key challenges plaguing women entrepreneurs. 

Lack of Finance

Since capital is the most important requirement for any business, the lack of funding has been a major challenge that has restricted several women entrepreneurs. The inability to gain access to funds has primarily been due to the lack of collateral to use to secure loans. 

To bridge this gap, several government schemes for women entrepreneurs have been introduced recently that enable women to quickly and effortlessly get access to capital. In addition to this, there are several financial institutions that have also started to offer unsecured business loans to women to help them kick start their own business. 

Lack of Education

Illiteracy and lack of formal education has traditionally been a major hurdle for women looking to start their own business. Considering the fact that proper education leads to better management of a business, it is important for women to overcome this challenge by enrolling themselves in the various educational programs established by the government of India. Some of the few government schemes promoting education amongst women are the Beti Bachao Beti Padhao Yojana, Mahila Shakti Kendra, and Mahila E-Haat among others. 

Low Risk-Taking Abilities

The various government schemes for women entrepreneurs can only satisfy the need for capital. However, many women interested in pursuing business are held back by their inability to take risks, which usually forms a huge part of any business. That said, women with low risk-taking abilities can overcome it by adopting a few simple tips. 

• By building self-confidence

• By weighing the pros and cons of any business decision prior to making one

• By taking intelligent decisions that take the path of the least risk 

Family Responsibilities 

In a country like India, a large majority of the populace expect women to take over familial responsibilities after their marriage. Even women who wish to focus on their career are expected to juggle both work and family responsibilities equally. This lack of freedom to pursue their careers has severely limited many women from realising their true potential. Fortunately, there are a few things that women could do. 

1. Hold talks with the family to make them understand the importance of having a career. 

2. Devise a plan to strike the right work-life balance. 

3. Prioritise responsibilities to manage time more effectively. 

Poor Networking Skills

Networking is an important step that every business owner needs to focus on. With the right network, business owners can grow their businesses far more quickly and in a more effective manner. However, women are perceived to have less than ideal networking skills. Thankfully, here are some ways to rectify it.

• Begin to attend events dedicated to networking

• Get to know more about the industry and the business as a whole

• Develop productive relationships with other business owners and women entrepreneurs

Security and Safety Issues

This is another major issue plaguing women entrepreneurs. Running a business demands a lot of time and effort. Women may have to work long hours that extend well into the night and might have to travel frequently to and meet their customers. 

This brings up the question of security and safety for women. Just like how the various government schemes for women for providing funding were established, steps are constantly being taken to bring down the crime rate for women and make the place a whole lot safer.

Government schemes for women entrepreneurs are contributing to the empowerment of not just women economically, but also promoting women as a part of the workforce. These initiatives financially support women in India, and thus help them develop their skills, network with their respective industry connections, and make them ready for the competitive markets. 

Women entrepreneurs can get a business loan at Bajaj Markets at attractive interest rates. The funds can be used to undertake various business operations, such as expanding your business, acquiring other companies, buying new machinery or equipment, etc.