Government Schemes Every Women Entrepreneur Should Know About

With the aim of formulating and administrating the regulations, rules, and laws related to the micro, small, and medium businesses in the country, the Government of India constructed the Ministry of Micro, Small and Medium Enterprises (MSME).

The department usually brims up with a creative ecosystem and novel ideas that aim at solving multiple problems related to the enterprises mentioned above. The ministry, this time has come up with an idea of encouraging enough to assist the Indian women entrepreneurs.

Looking at comparingly, the figures of women entrepreneurs are significantly lower as compared to their male counterparts in India. According to the reports generated by Startup India, there is a total of 13.76 percent of women entrepreneurs. Male entrepreneurs sum up to about 50 million. In contrast, there are only 8 million female entrepreneurs.

To strengthen up and increase the women’s empowerment in the sphere of business, both the State and the Central Governments have provided a financial motivation to promote the concept of entrepreneurship among women in India.

Woman Entrepreneur Scheme’s Offered By Government

Here, therefore, we’ve produced the “10 MSME schemes to empower women Entrepreneurs in the country”.

The Annapurna Scheme

Firstly, the Annapurna scheme is mainly shaped by the women entrepreneurs who have involved themselves with a food catering service. Under the MSME, the Government offers a loan of the capacity up to Rs 50,000 to buy supplies and equipment related to food catering. These entities are like water filters and utensils.

Moreover, such a businesswoman would require a guarantor to procure the loan. Once she has finished the formalities regarding the loan process, she can pay back in installments totaling to 36 credits. However, it would be relevant here to tell that the associated bank acquires the required assets as collateral under binding conditions and terms.

The Bhartiya Mahila Business Bank Loan

To begin with this loan, this scheme is for women entrepreneurs owning the firms dealing in manufacturing. The scheme provides a loan of up to Rs. 20 crores to the women entrepreneurs. There is no requirement of collateral and the bank offers loans up to Rs.1 Crore, as per the Credit Guarantee Fund Trust for Micro and Small Enterprises. Moreover, the repayment period for the loan, for the businesswomen falling under this scheme, is seven years.

Lastly, the Bhartiya Mahila Bank, which was incorporated with the State Bank of India in 2017, initiated the scheme.

Cent Kalyani Scheme

Firstly, the women entrepreneurs in sectors like agricultural work or retail trading can associate with the Cent Kalyani Scheme. Secondly, the Central Bank of India offers this scheme. The bank sanctions loans up to Rs 1 Crore under the scheme.

This scheme does not require guarantors or collateral as is contrary to the case with the Annapurna scheme. Lastly, the rates of interest vary with those of the market.

Dena Shakti Scheme

The Dena Shakti Scheme covers entrepreneurial stakeholders associated with manufacturing, agriculture, micro-credit, retail stores, and a few more associated small-scale businesses. The scheme provides loans of up to Rs 20 Lakh for businesswomen. Moreover, it also offers a discount of 0.25 percent rate of interest. Lastly, loans up to Rs.50,000 are available for the micro-credit sector, under this scheme.

Mudra Yojana Scheme

Women desiring to own small enterprises like beauty parlors, tuition centers, tailoring units, and other similar kinds of small units, should expect great offerings from the Mudra Yojana Scheme. It is a kind of a general scheme backed fully by the government. It can be helpful for women looking for setting business and sharing their own with each other.

The women entrepreneurs can avail the loans from Rs.50,000 to up to Rs 50 Lakh. However, the noticeable thing is that collateral and guarantors are required if the amount of the scheme crosses the limit of Rs 10 Lakh.

Furthermore, there are three plans more, that this scheme covers:

Shishu plan- It’s for new enterprises. The Shishu plan offers loans up to Rs.50,000.

Kishor plan- It is for registered enterprises. Rs.50,000- Rs.5 Lakh is the amount of loan that this plan offers.

Tarun plan- Enterprises avail gaining loans between Rs.5 lakh – Rs.10 Lakh under this plan. The plan hosts promotional ideas for providing business expansions for small enterprises.

Mahila Udyam Nidhi Scheme

The scheme promotes women taking interest in starting up a new small-scale enterprise. The Small Industries Development Bank of India (SIDBI) proposes the Mahila Udyam Nidhi Scheme. SIDBI offers the financial assistance of up to Rs.10 Lakh, under this scheme. The advantage comes with the stipulation of the repayment of the loan within 10 years. This condition covers a five-year period of moratorium. The Mahila Udyam Nidhi Scheme also promotes the upgrading and modernization of the ongoing projects.

The Stree Shakti Package For Women Entrepreneurs

This scheme mainly benefits women who have over 50 percent of ownership in a small enterprise. The women need to enroll themselves in the EDPs- the Entrepreneurship Development Programmes. Respective state agencies regulate this EDPs. Thus, the state-regulated agencies sanction the amounts of Rs.2 Lakh and above for providing loans under this scheme. The rate of interest that accompanies this scheme is meager of 0.05 percent.

Trade-Related Entrepreneurship Assistance and Development Scheme

Shortened as TREAD, the scheme encourages women by providing credits for the projects. It also assists women in gathering information on the accompanying needs and holding of specific sessions of counseling and training.

Udyogini Scheme

The Udyogini Scheme offers assistance to the women entrepreneurs falling between 18 and 45 years of age. Moreover, these businesswomen need to have their entrepreneurial initiation in retail, agriculture, and similar kinds of small ventures. This scheme provides the financial assistance of up to Rs 1 Lakh provided that the annual income of the beneficiary’s family remains below Rs 45,000.

There is no restriction to the income of disabled women, widows, and the destitute. Moreover, if the women falling under the above-specified classes, also fall under the categories of SC and ST, a loan amount of up to Rs.10,000 is provided.

UCO Mahila Pragati Dhara

The scheme is sponsored by the UCO bank. The UCO Mahila Pragati Dhara scheme intends to help and promote financial upliftment for women entrepreneurs. This aim, the scheme hopes to achieve by offering convenient financial help along with concessional terms and conditions. The scheme offers assistance for the economic activities associated with the services helping the sector of Micro and Small Enterprises.

The scheme offers the required capital or a term loan from the amount of Rs.2 lakhs to a high of Rs.25 lakhs. The beneficiary women-owned enterprises can utilize the helpful fund for setting up the new-born businesses. They can also utilize it for modernizing or extending their existing ventures.

For the availing businesswomen, there is no binding stipulation for a loan amount of up to Rs. 2 lakhs. But the loans falling between Rs.2 lakhs – Rs.25 lakhs, will levy a margin of 15% of the rate of interest.

On An Ending Note…

Women Entrepreneurs increasingly dot everywhere in the startup-up scenario of India. Nowadays, we even witness women leaving their high-profile jobs to join the pool of Entrepreneurship in India. They’ve begun stepping out of the comforts of their homes and venturing into the business world. With the initiatives of the Government mentioned above, backing them robustly, we can look forward to more and more occurrences of such feminine initiatives. Lastly, we wish the best of their toiling and brainy endeavors to let them also have the taste of entrepreneurial triumphs