The recent evolution in business finance and the emergence of FinTech platforms has made it easier for women entrepreneurs to get business loans. Today, business loans for women are also enabling self-employment in rural and urban India.
In India, there are various business loan schemes specifically designed to empower women entrepreneurs. The Pradhan Mantri Mudra Yojana (PMMY) is a prominent scheme offering business loans for women up to ₹10 lakh, under categories like Shishu, Kishor, and Tarun, aimed at supporting small to medium business ventures without the need for collateral.
Moreover, the Stand-up India scheme supports women and SC/ST entrepreneurs in setting up greenfield enterprises, providing substantial financial aid with favorable terms to promote entrepreneurship among underrepresented groups.
These schemes and business loans for women not only provide financial assistance but also aim to enhance the socio-economic status of women by enabling access to credit and encouraging entrepreneurship.
Women Loan EMI Calculator
Women Loan EMI calculators are simple and user-friendly tools designed to help you calculate the Equated Monthly Instalments (EMI) for your working capital loan. These calculators require three primary inputs: the loan amount (principal), the interest rate, and the tenure of the loan in years or months.
The formula generally used is:
EMI = [P x R x (1+R)^N]/[(1+R)^(N-1)],
where P is the principal amount, R is the monthly interest rate, and N is the number of monthly installments.
Using such calculators, you can quickly determine the monthly payments towards the loans for womens to start business, which helps in planning your finances effectively.
Business Loan For Women Features and Benefits
Business loans for women in India offer various features and benefits designed to foster entrepreneurship and economic empowerment among women. Here are some key aspects of business loans for women
| Loan Amounts | Ranges from ₹10 lakh to ₹1 crore under initiatives like Stand-Up India to support new women entrepreneurs. Wider loan brackets can help women entrepreneurs leverage these schemes to get access to funding for various purposes like starting, operating, and expansion activities of their businesses. |
| Concessional Interest Rates | Programs like Dena Shakti Scheme offer reduced interest rates, e.g., 0.25% concession on standard rates. These concessions can be of great relief to budding women entrepreneurs. |
| Collateral-Free Loans | Schemes like Synd Mahila Shakti and Orient Mahila Vikas Yojana do not require collateral or security. It helps the women entrepreneurs have access to debt funding without the requirement of collateral to promote entrepreneurship. |
| Repayment Flexibility | Orient Mahila Vikas Yojana offers up to 7 years repayment period, accommodating entrepreneurial needs |
| Support for Diverse Business Types | Available for various sectors such as manufacturing, agriculture, retail, etc. |
| Capacity Building and Skill Development | Some schemes provide training and skill development alongside financial assistance |
Eligibility Criteria for Business Loans for Women Entrepreneurs
Eligibility criteria for business loans for women entrepreneurs in India vary depending on the specific loan scheme. However, here are some common eligibility requirements across various schemes to avail sme loan and mudra loan
| Age Criteria | Women entrepreneurs typically aged between 18 and 65 years are eligible for most schemes. |
| Business Ownership | The applicant should own a significant share (at least 51%) of the business, especially in partnerships or corporations. |
| Type of Business | Eligible businesses are generally in manufacturing, services, or trading activities. Specific schemes may target micro, small, or medium enterprises. |
| Business Duration | The business should have been operational for a minimum period (usually 1-3 years) and actively income-generating. |
| Documentation | Proper registration under relevant acts (e.g., MSMED Act for MSMEs) and submission of identity, address, business registration, and financial documents are required. |
| Special Conditions | Some schemes (e.g., Stand Up India) support new enterprises, particularly in underserved sectors, as a first venture in manufacturing or services. |
These criteria ensure that the financial support reaches the intended recipients and fosters genuine entrepreneurial efforts among women.
Documents Required For Business Loans For Women Entrepreneurs
For women entrepreneurs seeking quick business loans in India, the commonly required documents include:
| Identity Proof | Aadhaar card, PAN card, Voter ID, Driving Licence |
| Address Proof | Utility bills (electricity, water), Government address documents |
| Business Proof | Business registration certificates, Licenses |
| Financial Documents | Recent bank statements, Income Tax Returns (ITRs), Profit and Loss statements, Balance sheets |
| Business Plan | Detailed plan outlining business nature, investment, revenue projections, operational details |
| Photographs | Recent passport-size photographs of the applicant |
Business Loans For Women: Fee and Interest Rates
The fees and interest rates for business loans for women can vary based on the lender and the specific loan scheme. Government schemes like the Mudra Yojana offer concessional interest rates to promote women entrepreneurship. Typically, these rates are lower than standard business loan rates to support and encourage women-owned businesses.
| Customized Interest Rates | Fair, Transparent – starting from 1.25% per month |
| Processing Fees | 2-5% |
| Loan Tenure | up to 3 years |
| Pre-closure Charges | Pre-closure charges are applicable as per the lender’s policy |
| Eligibility Criteria | ₹ 90,000 turn over for 3 Months |
| Loan Amount | ₹ 50,000 – ₹ 2 crore |
| Installments | Flexible Monthly / Bi-weekly |
*Based on the health of your business, revenues and annual turnover
**Pre-closures are only allowed after the first EMI is paid in full
How To Apply For Business Loan For Women?
The application process for a business loan for women generally involves the following steps:
- Form Download: Retrieve the application form from the bank’s official website or visit a bank branch. Usually lenders have the application forms available online for downloading.
- Form Filling: Fill in the necessary details which include personal information, business details, and loan requirements. Ensure that the information provided is free from errors and reflect truthful information that can be verified. This improves the chances of approval and speeds up the assessment process.
- Document Submission: Attach all required documents as specified by the loan scheme. It is imperative that the documents provided are authentic and error-free. Lenders may ask for self attestation of the documents, ensure that self attestation is done wherever necessary. Also, make sure that you comply with rules and assist in the document validation process.
- Submission: Submit the completed application form along with the documents to the bank either online or at a branch. Once all the relevant information and documents are provided to the lenders, ensure that you submit the application for further processing. Based on the information and documents provided by the applicant, the lender will proceed with the assessment process.
- Loan Processing: Wait for the bank to process the application and perform necessary verifications. Based on the information provided, the assessment and verification process will take time, in line with the usual turn around time. Make sure that you comply with all the rules and regulations and help the lender with the verification process.
Problems Faced By Women Entrepreneurs in India
Women entrepreneurs in India often face several challenges while applying for business loans for women:
- Access to Finance: Obtaining capital and credit at reasonable costs is a major hurdle. Having a loan available at terms that are suitable for the business, and interest rates and repayment terms that most suits the business cycle and collectibles is extremely important.
- Cultural Barriers: Societal norms often restrict women’s mobility and their ability to engage in entrepreneurial activities. Lack of support from the society and business vendors being hesitant in dealing with women is a major roadblock that needs to be addressed.
- Lack of Networking: Women may have fewer opportunities for networking which is crucial for business growth. Forums where the women entrepreneurs can connect and network with other market players, vendors, and potential customers can be really helpful for business operations and expansion.
- Work-Life Balance: Managing business demands while fulfilling family responsibilities is a significant challenge. Off-late we’re seeing a major shift in the perception and the facilities that enable women to manage their work-life balance efficiently. However, there is still a long way to go to put together an infrastructure that enables the women to manage their businesses and their societal and family responsibility smoothly.
- Training and Skills: Access to relevant training and skill development programs can be limited. Having access to such skill development programs can prove to be really beneficial for budding entrepreneurs. This helps the aspiring women entrepreneurs acquire necessary skills and knowledge to leverage the available opportunities with a goal to enhance their business proposition and make exponential returns.
Impact of Business Loans on Women’s Economic Empowerment
Access to business loans has played a pivotal role in fostering women’s economic empowerment in India. By providing female entrepreneurs with the necessary capital and financial resources, these loan programs have enabled them to start, grow, and scale their businesses. It ultimately contributes to their socio-economic advancement.
Moreover, the positive impact of business loans reaches far beyond the individual entrepreneur. When financial resources are available within households, families can prioritize children’s education, healthcare, and overall well-being. Furthermore, the availability of collateral-free and low-interest business loans has helped to narrow the gender gap in access to finance. This is particularly significant, as lack of collateral and higher interest rates have historically been significant barriers for women entrepreneurs in securing financing.
By addressing these barriers and empowering women financially, business loans have played a crucial role in enhancing women’s decision-making power. It increased their participation in the formal economy, ultimately driving greater gender parity and inclusive growth in India.
Top Government Scheme Related To Business Loan For Women Entrepreneurs
| Scheme Name | Objective | Key Features |
| Ujjwala Yojana | Provide free LPG connections to empower women | Free LPG connections, especially beneficial for women in rural areas |
| Mudra Loan Scheme | Offer financial assistance to micro and small enterprises | Loans up to Rs. 10 lakhs without security; lower interest rates for women entrepreneurs |
| Stand-Up India Scheme | Promote entrepreneurship among women and marginalized sections | Bank loans for greenfield businesses; special focus on SC/ST and women entrepreneurs |
| Mahila Coir Yojana (MCY) | Empower women by providing coir spinning equipment at concessional rates after training | Subsidies for machinery purchase; margin money subsidy; focus on coir and related products |
| Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) | Provide collateral-free funding for micro and small enterprises | Guarantee coverage up to Rs. 200 lakhs; higher cover percentage (85%) for women-owned enterprises |
| Prime Minister’s Employment Generation Programme (PMEGP) | Foster social entrepreneurship through low-cost product/service creation | Business planning, incubation facilities, and training; earmarked funds for service-based projects |
| Skill Development and Entrepreneurship Scheme | Support new and existing business ventures for women micro-entrepreneurs | Incubation and acceleration programs for business growth |
| Trade-Related Entrepreneurship Assistance and Development (TREAD) | Empower women economically through finance, training, and trade-related activities | Financial assistance for NGOs; aims to promote entrepreneurship among women through trade and services |
Future of Women Entrepreneurship in India
The future of women entrepreneurship in India looks increasingly promising, with a multitude of factors driving its growth and evolution. As India continues to make strides towards gender parity and economic empowerment, the landscape for women-owned businesses is poised for a transformative shift.
One of the key trends shaping the future of women entrepreneurship in this country is the growing access to finance and supportive government initiatives. These loans and schemes as discussed above have made significant strides in addressing the historical challenges faced by women entrepreneurs in security and necessary capital. This improved access to credit, coupled with relaxed eligibility criteria and customized loan products. It is further expected to promote the growth of women-led enterprises.
Moreover, the rapid digitalization of the Indian economy has opened up new avenues for women to leverage technology and scale their businesses. Online platforms and e-commerce opportunities have enabled women to transcend geographical boundaries and reach wider markets. It allows them to capitalize on the rising demand for their products and services. As the digital revolution continues to transform their business scope, women entrepreneurs are well-positioned to thrive in this dynamic environment.
Why Choose Lendingkart for Women Business Loans?
When it comes to accessing business loans, Lendingkart offers a range of benefits that makes it an attractive choice for women entrepreneurs in India:
- Customizable Loan Amounts: Lendingkart’s business loans for women offer flexible financing options, ranging from ₹50,000 to ₹2 crores. The wide array of offering allows the applicants to apply for loans geared towards multiple business purposes. This allows women to secure the capital needed for starting, growing, or expanding business.
- Collateral-Free Loans: Collateral serves as a cushion for the lenders, so that in case of default, the collateral can be liquidated to recover outstanding dues from the borrower. Lendingkart understands the challenges women entrepreneurs face in providing collateral.
- Streamlined Application Process: Our online application process is designed to be user-friendly and efficient. You need minimal documentation and time, enabling you to secure funds quickly. You just need to provide accurate and verifiable details and documents that are asked during the application process, our team will make lightning quick assessments to ensure that no time is wasted in the application process and upon approval, the funds are released quickly!
- Dedicated Relationship Manager: Lendingkart assigns a dedicated relationship manager to each woman borrower. They provide personalized guidance and support throughout the loan process. The relationship manager can help provide guidance with respect to the application process, documents requirement, help with tracking application status, and also render support on post approval process. Also, these relationship managers act as a single point of contact for the women entrepreneurs which can prove to be really helpful in managing loans from LendingKart.
- Flexible Repayment Schedule: We offer flexible repayment schedules, including grace periods and moratoriums. This helps in accommodating the unique cash flow needs of women-owned businesses. Also, having a flexible repayment schedule can help with aligning the receivables with the repayment schedule, thus making the business cycle more efficient.
- Competitive Interest Rates: Lendingkart’s business loans for women come with competitive interest rates of 1-2%. It helps women entrepreneurs to access affordable financing to fuel their growth. The business loan interest rate on offer is highly competitive, this coupled with the host of features of convenience makes it a really attractive lending proposition geared towards women entrepreneurs looking to start, operate, and grow their business in India.
By combining these innovative features with a deep understanding of the challenges faced by women entrepreneurs, Lendingkart positions itself as a trusted partner. We empower women to achieve their business dreams and aspirations!
Frequently Asked Questions
Women can apply for business loans by:
- Identifying suitable loan schemes such as the Mudra Yojana, TREAD, or specific women-centric loans offered by commercial banks. It is also essential to identify what is the purpose of the specific schemes you’re trying to apply for and go for the one whose goals align the most with your requirement, this will help exponentially improve chances of loan approval.
- Gathering all required documents such as identity proof, address proof, business registration documents, and a detailed business plan. Having gaps in documents can make the assessment process painfully slow. It is imperative that the applicant has all the necessary documents in place, preferably without any gaps to substantially improve chances of approval and to ensure that the application and approval journey is smooth and quick.
- Submitting an application either online through the bank’s or government’s official website or by visiting a bank branch. Look for, and choose the application journey which is most convenient for you, and improves your chances of loan approval. Ensure that the application is free from errors and reflects truthful information that can be verified by the government or the lenders. It is really important to be compliant with the rules and regulations put together by the government and the lenders, as it ensures fair lending practices to the businesses that need the funding most.
Obtaining a business loan can be relatively straightforward if the eligibility criteria are met, which typically include having a substantial stake in the business and a clear business plan. Government initiatives like the Mudra Yojana are designed to streamline the process and offer support without the need for collateral. However, it is essential for the applicant to ensure that they are applying for loans under the correct scheme, and the application is fully compliant with the requirements set forth by the government and the lender.For making it easier to obtain business loan approval, it is also imperative for the entrepreneur to have all the required documents in place that reflect truthful and accurate information. This helps the lenders make the correct assessment. Furthermore, it’s great if the applicant can make the lender’s assessment easier by providing supporting documents that can help the lender verify the accuracy of the details provided in the application.
NOTE: No processing fees are being charged by Lendingkart before disbursement of the loan amount. Any individual claiming otherwise must not be entertained. Please report such activity on 