Government Loan Schemes For Women Entrepreneurs | CMAT Mock Test Series - CAT PDF Download

List of Government Schemes For Female Entrepreneurs In India

1. Annapurna Scheme

• This loan is provided to women in the food catering industry, still establishing their small-scale businesses. The loan allows these women entrepreneurs to avail it as capital requirements like buying equipment and utensils, setting up trucks, etc.
• Under this government loans for women to start business, women can sell packed food items and snacks which is one of the most common businesses that women entrepreneurs scope out and excel in since it is something that housewives have been managing all their lives and are accustomed to. 
• This boosts their sales since they have a chance at better capital and new products to kickstart their business than they could otherwise afford. 
• The loan limit is Rs. 50,000 under the scheme.

2. Bharatiya Mahila Bank Business Loan

• This banking scheme for women entrepreneurs supports women and their businesses on a large scale, which is why it was created in the first place. 
• Women have ventured into different fields of business and are constantly pining for success. This bank has the vision to provide economic empowerment to women. 
• The loan limit via this source is Rs.20 Crores.

3. Mudra Yojana Scheme

• It is a Government of India initiative that aims to improve the status of women in the country by providing business loans and supporting them so that they can be financially independent and self-reliant. 
• After approval of the loan, they will be given Mudra cards that work like credit cards with the withdrawal limit being 10% of the loan. This scheme has several different types of plans as per business type, level of expansion, and loan aim. 
• The loan limit under this women’s loan scheme by the government is Rs. 10 Lakhs.

Government Female Loan Schemes Offered Under Mudra Yojana

The Prime Minister’s loan scheme for women is classified into three schemes, Shishu, Kishor, and Tarun, under the Pradhan Mantri Loan Yojana (PMMY).
Each loan scheme’s loan amount is listed below:

• SHISHU Loan: The Mudra Shishu Loan scheme provides loans of up to Rs. 50,000 (for start-ups and new businesses).
• KISHOR Loan: Loans ranging from Rs. 50,001 to Rs. 5,00,000 are available under the Kishor Loan Scheme (for the purchase of raw materials, equipment/machinery, and business expansion for existing businesses).
• TARUN Loan: The Tarun Loan Scheme provides loans ranging from Rs. 500,001 to Rs. 10,00,000 (for established businesses and enterprises).

4. Orient Mahila Vikas Yojana Scheme

• This women’s loan scheme is for women who hold 51% share capital separately or collectively as a proprietary concern. It is a very good opportunity for these stakeholders to help expand their business and add to the development of their field. 
• These loans for women entrepreneurs in India do not require collateral security while also giving a concession at an interest rate of up to 2%. 
• The period of repayment is flexible for up to 7 years and the loan limit is Rs. 25 Lakhs.

5. Dena Shakti Scheme

• This government scheme for women’s businesses is limited only to those in the fields of agriculture, retail, manufacturing, small enterprises, or micro-credit organizations. 
• As per RBI limits, the maximum ceiling limits for women beneficiaries are also provided according to the sector they are expanding or planning to open a business. 
• The loan limit is Rs.20 Lakhs.

6. Pradhan Mantri Rozgar Yojana

• Also known as PMRY, this is one of the best schemes for women entrepreneurs both socially and financially. The focus of this scheme is on creating skill-based, self-employment through women entrepreneurs and smart minds at work being utilized for monetary independence.
• This scheme covers both urban and rural areas and was developed through several amendments in cost, eligibility, and subsidy limits. The loan subsidy amount is up to 15% of the project cost with an upper ceiling of Rs. 12,500 per borrower as a restriction.
• The scheme applies to all types of ventures in industries, trade, and services.
  • The age limit is 35 years.
  • The loan limit for business is Rs. 2 Lakh
  • For service and industry, Rs. 5 Lakh.

7. Udyogini Scheme

• This Udyogini scheme encourages women to be self-reliant and helps them in self-development by empowering them economically to be able to do so. 
• This women’s loan scheme encourages budding women entrepreneurs by providing loans in the regard and giving good rates of interest in comparison to the private sector’s skyrocketing rates, while also being a trustworthy source of lending.
• This is only valid for those who have a family income of less than Rs. 40,000 per annum. They especially encourage loans in the trade and service sector and the cap amount for the same is Rs. 1 Lakh.

8. Cent Kalyani Scheme

• This government scheme for women is targeted at both new businesses and those that aim to grow and expand; the only specific emphasis is on the scheme being for Women Entrepreneurs. Retail trade, education and training, and self-help groups are not eligible for the scheme.
• The eligible categories are given in detail with the rules on their website. This loan is a collateral-free loan as well with zero processing fees. The selected eligible categories of businesswomen can take the loan and expand their business through these women’s loan schemes for women entrepreneurs. Under this scheme, the loan limit is Rs. 100 Lakh.

9. Mahila Udyam Nidhi Scheme

• This women’s loan scheme aims to meet the gap in equity. 
• It promotes MSMEs and small sector investments in different industries to grow and excel in their areas. 
• This also encourages the reconstruction of SSI units that are deemed incapable but are actually viable to save. 
• A period of 10 years is given to the debtor to repay the loan and the limit for the loan is Rs.10 Lakhs.

10. Stree Shakti Yojna

• Under this scheme, women entrepreneurs qualify for a 0.05% concession on loan amounts exceeding 2 lakh, accompanied by additional benefits. This opportunity is open to all ambitious women business proprietors aspiring to launch their ventures. 
• A key prerequisite is the enrollment of these women entrepreneurs in the Entrepreneurship Development Program (EDP).

11. Synd Mahila Shakti Scheme

• The Syndicate Bank initiated this program to empower women entrepreneurs. Within this initiative, the bank provides financial support to women who own small businesses or are self-employed. The primary objective of this scheme is to foster the economic empowerment of women, encouraging them to seek business loans for expanding their ventures. The government envisions a scenario where women can readily access financial assistance to grow their businesses, with a maximum loan amount available under this scheme capped at 5 lakh.
• Indifi is another one of your choices and the best one at that considering the facilities and eases they provide by giving women business loans. This economic help is a booster for women looking for ways to grow and establish their strength as entrepreneurs. It is one of the best ways of getting loans and helps women lend great loans and lenders, along with loads of moral support and encouragement.
• Indifi is an expert in the field of loan financing since it analyses data of businesses from various sources and draws insight to judge their creditworthiness. This helps them judge the past, predict the future, and work on a more resourceful present by lending loans in accordance with performance and potential.
• It is helpful for these upcoming and growing women entrepreneurs to utilize the money to their benefit. These money lending opportunities include short-term loans and long-term loans, bill discounting, and many other such opportunities at lucrative rates, and in some cases even making these loans collateral-free.
• Their approach makes it easier and more convenient for budding entrepreneurs to take women empowerment loans by minimizing risk, reducing paperwork and associated costs, and making it a simple and hassle-free experience.

Challenges Faced by Women Entrepreneurs In India

• Breaking centuries of conventions, Indian women have come out of their comfort zone and carved a niche for themselves in the business world. The corporate career has given them financial independence and an opportunity to demonstrate their managerial skills. 
• But, entrepreneurship took her much ahead and gave her the confidence to lead the world with an example. India currently has over 8.05 million women entrepreneurs. It is around 14% of the total Indian business industry. Apart from this, recent data also highlights that over 79% of women-owned enterprises are self-financed.
• On paper, things might look quite progressive and promising. But the reality is, that these numbers essay only part of the story. Sadly, women-owned companies are still in the minority and face more hurdles as compared to their male counterparts. 

Lack of Finance

• Finance is the lifeblood of any business, be it small or big. One of the biggest challenges women entrepreneurs face in India is the lack of finance. They face a shortage of funds on two counts.
• First of all, they generally do not have enough assets in their name. It means they have nothing to use as collateral for borrowing funds from banks and other financial institutions. This situation limits their access to external sources of finance. 
• Secondly, lending institutes also feel that women are less credit-worthy as compared to men. They believe that women entrepreneurs can anytime wind up their business for personal commitments. 
• However, the government of India has come up to support and encourage women on financial grounds. Several women loan schemes for women entrepreneurs are launched in this direction:
  • Support to Training and Employment Programme for Women – STEP
  • Stree Shakti Package
  • Annapurna Scheme
  • Udyogini Scheme
  • Dena Shakti Scheme

Lack of Education

• The female literacy rate in India is around 65.46% as compared to the 74% male literacy rate. Illiteracy has always been the root cause of several socioeconomic problems in India. In rural areas, women are still deprived of higher education.
• This condition limits their know-how of business management functions. A well-educated woman has a higher chance of managing a successful business empire. On the other hand, less qualified women tend to struggle a lot with managing regular business functions as well.
• Here is a list of the top government women’s loan scheme to promote women’s education in India:
  • Beti Bachao Beti Padhao Yojana – To address declining CSR, propagating education, protection, and the survival of girls.
  • Mahila E-Haat – A multilingual web-based platform to promote marketing skills in women.
  • Mahila Shakti Kendra – To empower rural women by educating them about digital literacy, employment opportunities, skill development, health, and nutrition.

Low Risk-Taking Abilities

Although Indian parents are coming forward to provide an enriched life for their daughters, they still prefer women to play safe. They encourage their daughters to step into stable jobs rather than start independent ventures. This attitude has impacted the risk-taking abilities of women to a larger extent. Here are some simple tips to overcome this challenge:

• Women should focus on building self-efficacy.
• They should understand all the pros and cons before making the final decision.
• They should also have confidence in their abilities to face any challenge that comes their way.
• It is also crucial to be intelligent in taking risks and fighting negativity in society.

Family Responsibilities

• What is more important for a woman— family or career? The majority of the Indians would say, family. It is where most of the women lose the plot. A career-oriented woman has to juggle between her work and family constantly.
• She is not given the freedom to concentrate on her career as men have. It is one of the biggest reasons why women entrepreneurs get discouraged and choose to go for 9-to-5 jobs.

Poor Networking Skills

• Networking is crucial for strengthening business ties, gaining knowledge, building confidence, and expanding business. However, it is seen that women prevent themselves from stepping out of their comfort zones.
• The majority of them are not pros in networking with clients and customers. This habit can act as a big roadblock to the success of their entrepreneurial ventures. Here are some networking tips for such women:
  • Start attending networking events.
  • Identify the right conversational icebreakers.
  • Enhance your knowledge about the industry.
  • Develop relationships.

Security and Safety Issues

• Lack of safety and security is one of the biggest women entrepreneurs’ challenges in India. Entrepreneurship demands long working hours and complete dedication. That’s not all; you might also need to travel a lot and be present for the clients and customers 24*7.
• The constant rise in the crime rate demotivates women from pursuing their passion for becoming successful business owners. Although the government of India is taking every possible step to curb this issue, things will take time to get normal and safer.

These are the top challenges that women entrepreneurs face around the world. However, many inspirational women have overcome these challenges and have carved a niche in this male-dominated industry. You can also succeed in your business ventures. All you need to do is have the right mindset, clarity of vision, and determination to pass through every hurdle that comes your way.
The government of India is also supporting women’s empowerment to the fullest. Right from funds to education, the government is taking every possible step to develop women’s status in society.