Top 10 Business Government Schemes for Women Entrepreneurs in India

Are Government Programs for Women Entrepreneurs in India Really Helpful? Let’s find out Women are growing in the field of entrepreneurship and developing the field in dynamic terms.

Women can change things their way when they want and have been noted to be consistent with the progress. Women who want to earn money on their own and be businesswomen are encouraged these days because of the advances their gender has made in the field.

If you are a woman who is eager to assert yourself and your intelligence in the field, this can be a great way to break through the walls of society and make your claim as a successful intelligent human being, in some cases even better some men.

For these MSME owners, some credit programs for women are offered by the government and public institutions across the country that provide lucrative offers to encourage these businesses and help them access credit.

There are certain age limits, credit limits and terms and conditions that come with these loans which you should check in detail before taking out the loan. However, let us briefly see how women are empowered by different organizations under different loan programs for women.

So let us see the top 10 Business Government Schemes for Women Entrepreneurs in India.

Annapurna Scheme:

This loan is provided to women in the hospitality industry who are still setting up their small-scale businesses. The loan allows these women entrepreneurs to make use of it as capital requirements such as buying equipment and utensils, setting up trucks, etc.

Under this women’s loan system, women can sell packaged foods and snacks, which is one of the most common businesses that women entrepreneurs focus on and excel at, as it’s something housewives have managed all their lives and are accustomed to.

This increases their sales, as they have an opportunity for more capital and new products to jump-start their business than they could otherwise afford. The loan limit is Rs. 50,000 under the scheme.

Bharatiya Mahila Bank Corporate Loan:

This banking program for women entrepreneurs extensively supports women and their businesses which is why it was created in the first place. Women have ventured into different industries and constantly crave success. This bank has a vision to empower women economically. The loan limit through this source is Rs.20 Crores. This is one of the best Business Government Schemes for Women Entrepreneurs.

Mudra Yojana Scheme:

It is an initiative of the Government of India 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 are issued Mudra cards that work like credit cards with a withdrawal limit of 10% of the loan. This scheme has different types of plans depending on the business type, level of expansion and purpose of the loan. The loan limit under this government women loan scheme is Rs. 10 lakhs.

Government loan schemes for women offered under Mudra Yojana

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

The loan amount for each loan program is shown below:

SHISHU Loans: The Mudra Shishu loan scheme offers loans up to Rs. 50,000 (for startups and new businesses).

KISHOR Loans: Loans ranging from Rs. 50,001 to Rs. 5,00,000 are available under the Kishor loan scheme (for purchase of raw materials, equipment/machinery and business expansion for enterprises existing).

TARUN Loan: The Tarun loan scheme offers loans ranging from Rs. 500,001 to Rs. 10,000,000 (for established businesses and companies). Business loans for women entrepreneurs

Orient Mahila Vikas Yojana Scheme:

This loan program for women is aimed at women who hold 51% of the capital individually or jointly in a real estate company. This is a great opportunity for these players to grow their business and contribute to the development of their field. These loans for female entrepreneurs in India require no collateral while offering an interest rate of up to 2%. The repayment tenure is flexible up to 7 years and the loan limit is Rs. 25 lakhs.

Dena Shakti Program:

This government women’s enterprise program is limited to agricultural, retail, manufacturing, small business, or microcredit organizations. In line with the RBI limits, the maximum limits for female beneficiaries are also indicated based on the sector in which they are expanding or planning to start a business. The loan limit is Rs.20 lakhs.

Pradhan Mantri Rozgar Yojana:

Also known as PMRY, this is one of the best programs for female entrepreneurs, both socially and financially. The goal of this program is to create skills-based self-employment by women entrepreneurs and bright minds at work who are leveraged for financial independence.

This scheme covers both urban and rural areas and has been developed through various changes to costs, eligibility and grant limits. The grant amount of the loan is up to 15% of the project cost with an upper limit of Rs. 12,500 per borrower as a bond. This helps as the top business loan scheme for Women in India.

The scheme applies to all types of companies in industry, commerce and services. The age limit is 35 years old.

The credit limit of the company is Rs. 2 lakh

For service and industry, Rs. 5 lakh.

Udyogini scheme:

This Udyogini program encourages women to be self-reliant and helps them grow by empowering them economically.

This loan program for women encourages budding women entrepreneurs by offering loans linked to good interest rates compared to skyrocketing private sector interest rates while being a reliable source of credit.

This only applies to those whose family income is less than Rs. 40,000 per year. They especially encourage loans in commercial and service sectors and the maximum amount for this is Rs. 1 lakh. This is one of the best Business Government Schemes for Women Entrepreneurs.

Cent Kalyani Scheme:

This government scheme for women targets both new businesses and those looking to grow and expand; the only specific emphasis is on the scheme for female entrepreneurs. Retail, 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 also a collateral-free loan with no processing fees. Selected eligible categories of female entrepreneurs can take out the loan and expand their business through these female entrepreneur schemes. Under this scheme, the loan limit is Rs. 100 lakhs.

Mahila Udyam Nidhi Program:

This loan program for women aims to close the equity gap. It promotes MSMEs and small sector investments in various industries to grow and excel in their fields. This also encourages the rebuilding of SSI units deemed incapable but viable for relief. The borrower is given a period of 10 years to repay the loan and the limit for the loan is Rs.10 Lakh.

Synd Mahila Shakti Scheme

Syndicate Bank’s Synd Mahila Shakti Scheme offers financial assistance to female business owners. Credit facilities offer this to female entrepreneurs, retail dealers, and small company owners.

This loan is available to women who want to launch a new business or grow their existing one. One of the financing programmes for women that grants candidates with free credit cards is this one.

The Synd Mahila plan has a maximum loan amount of 5 crores. This is one of the best Business Government Schemes for Women Entrepreneurs.

Some of the issues faced by women entrepreneurs include the following:

Financial Problem:

Finance is considered the “lifeblood” of any business, large or small. However, female entrepreneurs suffer from a lack of funds in two areas.

First, women generally do not have property in their name to use as collateral to obtain money from outside sources. Their access to external funding sources is therefore limited. ADS:

Second, banks also view women as less creditworthy and discourage female borrowers as they believe they can leave their businesses at any time.

In such a situation, female entrepreneurs are tied to their own savings, if any, and loans from friends and relatives which should be meager and paltry. For example, women’s businesses fail due to lack of funds.

Scarcity of Resources:

Most of the women’s businesses are plagued by the shortage of raw materials and necessary inputs. Added to this are the high raw material prices on the one hand and the procurement of raw materials at minimal discounts on the other.

The failure of many women’s basket-making cooperatives in 1971 is an example of how resource shortages spelled the death knell for women-owned businesses (Gupta and Srinivasan 2009).

Tough competition:

Women entrepreneurs do not have the organizational prerequisites to pump a lot of money for acquisition and advertising. As such, they face stiff competition from both the organized sector and their male counterparts in marketing their products. Such competition ultimately leads to the liquidation of women’s businesses.

Limited mobility:

Unlike men, the mobility of women in India is severely restricted for various reasons. A single woman asking for a room is always a suspect. The arduous exercise of setting up a business, coupled with the humiliating attitude of civil servants towards women, forces them to give up the idea of ​​setting up a business.

Conclusion

In addition to the aforementioned issues, socioeconomic limitations, societal attitudes, a lack of need for accomplishment, and poor infrastructure facilities prevent women from starting their own businesses.