Women to Receive Rs 1 Lakh Loan with Zero Interest: Everything You Need to Know About this Scheme

For decades, Indian women were often confined to traditional roles, daughters, wives, and mothers, bound by societal expectations. But as the world evolved, so did the narrative surrounding women. Today, women aren’t just playing their part in these time-honoured roles, they’re stepping onto new ground, shattering glass ceilings, and carving out spaces for themselves as business moguls, entrepreneurs, innovators, and changemakers. The future is female, and it’s bold, ambitious, and unstoppable!

The entrepreneurial landscape in India is growing significantly, with women entrepreneurs also being a significant part of it. A report by WISER highlights this commendable rise of women-led startups. According to the report, women-led startups rose to 18% in recent years from a mere 10% of female-led entrepreneurial units. This positive shift or growth showcases how education and government policies, among other things, have come in favour of supporting women.

However, despite these modern changes, women still have to go through a hassle to secure enough capital. Here comes the government’s business loan scheme for women. These loan schemes serve as a perfect support for a woman to cherish their goals and needs. These instant loans can offer huge help to women willing to thrive in this competitive entrepreneurial landscape. Curious to know more about these loans? Stay tuned as we discuss some important government schemes that can come in handy for women business owners. 

Mahila Udyam Nidhi Yojana

Mahila Udyam Nidhi Yojana is a popular scheme launched by the government of India to encourage more and more women to step into entrepreneurship. This government loan for women is designed to offer financial support and credit facilities to women at concessional rates. 

Launched under the guidance of SIDBI, the scheme was first introduced by Punjab National Bank. However, its huge impact and success have allowed its expansion to other financial and lending institutions. You may use the availed funds for service-related or even manufacturing activities. 

Eligibility 

Before you apply for the loans under the Mahila Udyam Nidhi Scheme, make sure you meet the following requirements. 

• The scheme is designed especially for women, who are looking for funds to start or expand their business. This could be small-scale industries or MSMEs. 
• The share of women entrepreneurs shall be no less than 51% in the enterprise. 
• Eligible businesses include services, manufacturing, or trading. 
• Funds can be availed for specific purposes like purchasing new machinery, expanding your business to new locations, etc. 
• The business investment shall be no less than ₹5 lakhs. 

Interest Rates Chargeable 

The interest rates on these loans are determined by SIDBI and are provided by banks. This means they may vary from lender to lender and from time to time. 

Features and Benefits 

Mahila Udyam Nidhi Scheme allows women entrepreneurs to avail of loan amounts of up to ₹10 lakhs. 

Here are some of the features of the scheme

• The project’s total cost should not exceed ₹10 lakhs. 
• The loan limit should not go beyond covering 25% of the total project cost. 
• These loans have a repayment period of up to 10 years, with a moratorium tenure of 5 years. 

Here are some of the benefits of the scheme:

• These help and encourage women entrepreneurs. 
• They are also useful in creating new employment opportunities. 
• Helps to overcome the equity gap. 
• Give a push to small-scale industries. 

Dena Shakti Scheme

Dena Shakti Scheme, an initiative introduced by the Dena Bank. It was launched with a vision to create opportunities and economic upliftment for women. Women can avail of these loans to meet their working capital requirement or for the growth and expansion of their business. Here are some of the details of these loans. 

Eligibility 

Women entrepreneurs should have more than 50% of business ownership to be eligible to avail of the Dena Shakti loans. 

Documents Required

Before you apply for the loan, here are some essential documents that you must keep ready to complete your application form.

• Proof of identity, eg, Aadhar, PAN, voter card, driving license, etc. 
• Proof of residence, eg, Aadhar, Utility bill, etc
• Bank account information 
• One passport-size photo

Interest Rate Chargeable 

Dena Shakti loans are aimed at empowering women entrepreneurs with adequate financial support. Therefore, the interest rates on these loans are comparatively lower. Women entrepreneurs may avail of these loans at an interest rate of 0.25% below the base rate. 

Features and Benefits 

Using Dena Shakti bank loans, women entrance can avail loans amounting to ₹20 lakhs for agriculture, retail trading, manufacturing, or small enterprises. 

Here are some of the features and benefits of the scheme:

• Allows women entrepreneurs to avail loans with a concession of 0.25% in the rate of interest. 
• The scheme is a mix of term loans and working capital. 
• The scheme has a flexible repayment period of up to 10 years. 
• The scheme also encourages retail stores, micro-credit, agriculture and allied sectors. 

Bhartiya Mahila Bank Business Loan

Bhartiya Mahila Bank Business Loan is an attractive and popular finance option offered by Bhartiya Mahila Bank, which is now a part of SBI. Bhartiya Mahila Bank aims to support women’s empowerment and financial needs via inclusion. Therefore, offering a safe environment encourages women to grow and expand their businesses. Women entrepreneurs can avail BMB business loans of up to ₹1 crore to manufacturing units with competitive interest rates and zero collateral. 

Eligibility 

Before you apply for BMB business loans, make sure you meet the following requirements. 

• Can be offered to sole proprietors, private and public limited companies, and partnership firms. 
• Must have at least 2 years of work experience when working self-employed, with no less than 2 years of business continuity. 
• Should be not less than 21 years and not more than 60 years. 
• Your home income should be no less than ₹25,000

Documents Required 

Here is the list of documents that you must keep handy when applying for BMB business loans. 

For Salaried Individuals 

• Proof of identity 
• Proof of residence/address
• Your payment slip for over last 3 months
• Passport size photos 
• Bank statement of your salaried account 
• Form 16

For Non-Salaried/ Self Employed Individuals 

• Proof of identity 
• Proof of address 
• ITR of last 2 years
• Financial information, eg, balance sheet, tax audit reports, etc. 
• Current obligations, e.g., any other instalments you’re obliged to pay, your credit card limits, etc. 

Interest Rate Chargeable 

Women entrance can avail of Bhartiya Mahila Bank Business loans with an interest rate ranging between 10.15% to 13.65% per year. 

Features and Benefits 

Here are some of the features and benefits of the scheme: 

• Women entrepreneurs may avail of loans with an interest rate concession of 0.25%. 
• Flexible repayment period extending up to 7 years. 
• A blend of term loans and working capital. 
• Collateral-free loans for loan amounts of up to ₹ 1 crore. 

Wrapping Up

Despite the advancements and whatnot, the role of women entrepreneurs can be downplayed by limiting their access to finance. In addition to that, women still struggle with a variety of challenges like family responsibilities, societal norms, limited professional networks, lack of proper training and support, and much more. To help women overcome all these challenges and encourage their contribution to the entrepreneurial landscape, business loan schemes for women can help. Women entrepreneurs can easily apply for loans under the Dena Shakti scheme, BMB business loans, MUDRA loans, Stree Shakti Yojana, Annapurna scheme, and so on. 

However, before you apply for these loans, make sure to do a bit of research on the loan scheme. Compare the loan amount, requirements, and other basic details to see which scheme best suits your financial goals and business requirements. Once you’re done making the comparisons, make an informed choice and use these business loans for maximum growth and success of your business.