Skip to content
Home » 9 Best Entrepreneurial Business Loan Alternatives for Women Entrepreneurs in India

9 Best Entrepreneurial Business Loan Alternatives for Women Entrepreneurs in India

Entrepreneurial initiatives, or young enterprises, are no longer classified as novel startup ideas in India. To encourage the continued growth of entrepreneurial enterprises, top public and private-sector banks, as well as NBFCs, are offering a variety of business financing plans for women businessmen and women. Women entrepreneurs have the option of receiving financing for their businesses and working capital funding at lower interest rates from several select financial institutions.

India has achieved outstanding achievements in the realm of entrepreneurial activity, notably over the previous decade. According to research, 14% of Indian entrepreneurs are female, and this figure is projected to grow in the not-too-distant future. Such a development is also expected to provide countless job possibilities for the nation as a whole.

The government of India has played a vital role in this success through the implementation of financing for businesses, especially for female business enthusiasts. This effort empowers women who want to start their own businesses to lay a solid foundation for long-term success. These entrepreneurship financing packages for budding female entrepreneurs are meant to help them pursue their ambitions as entrepreneurs and become prosperous entrepreneurs in India.

Female entrepreneurs are transforming the entrepreneurial realm with their achievements. They have consistently demonstrated their ability to turn a concept into a profitable business through excellent managerial skills. A woman-driven firm, like any other organization, requires ongoing financing to guarantee that its processes function smoothly. Business financing options for women are considered to be among the most effective strategies to meet an organization’s funding demands.

Entrepreneurial Loan Options for Female Entrepreneurs

  • Cent Kalyani Scheme Offered by the Central Bank of India.

The Central Bank of India provides enterprise and business startup loans to women business people who seek to set up a new firm or expand or change their existing one.

Have a Look at the Features of the Cent Kalyani Scheme

The rates of interest range from 8.70% to 8.95% per annum.
ROIRate of interest for loans up to Rs. 10 lakh: 8.70% per annum.
The rate of interest for loans exceeding Rs. 10 lakh and up to Rs. 100 lakh: is 8.95% per annum.
Loan PurposeTo satisfy everyday needs, such as purchasing plant and machinery/equipment, and operating capital costs.
Type of LoanTerm Loan
Loan SizeUpto Rs. 100 Lacs
Processing ChargeNIL
CGTMSE CoverageAvailable
Collateral or Security or Third Party GuaranteeNot Required

Women entrepreneurs who provide products or services to rural and small-scale cottage businesses, MSMEs, and women involved with agricultural activities, retail, and government-backed enterprises can get business financing.

  • MUDRA Loan under the PMMY

The MUDRA Scheme, launched in 2015 as part of the Pradhan Mantri Mudra Yojana (PMMY), is a lending plan provided by banks to individuals, young businesses, owners of businesses, and women business people throughout India. Through this initiative, women can get loans of up to Rs. 10 lakh to establish a new enterprise or develop the one they already have. The size of the loan is provided in three different groups: Shishu, Kishor, and Tarun.

Here is a Quick Overview of MUDRA Loan’s Feature

ROIConcessional interest rates for female entrepreneurs.
Collateral or SecurityNot Required
Loan TypeTerm Loan/ Overdraft
Loan Categoriesi) Sishu ii) Kishor iii)Tarun
Loan AmountUp to 10 Lacs
Loan TenureUpto 5 Years
Processing ChargeNil to 0.50% of the sanctioned amount.

Mudra loans are made available to women to motivate them to become business leaders and strengthen the MSME industry as a whole.

Check the Table to Get the Most Recent Update of Interest Rates on Business Loans

LenderLoan AmountROIHow To Apply
HDFC BankUpto 75 Lacs16% OnwardsApply Here
HDFC Business Loan ( Small Vertical)Upto 10 Lacs16% OnwardsApply Here
IDFC First BankUpto 75 Lacs16% OnwardsApply Here
AXIS Bank Business LoanUpto 75 Lacs16% OnwardsApply Here
Axis Finance Business LoanUpto 50 Lacs18% OnwardsApply Here
IndusInd Bank Business Loan

Upto 75 Lacs16% OnwardsApply Here
Kotak Mahindra BankUpto 2 Cr14% OnwardsApply Here
Bajaj FinservUpto 50 Lacs17% OnwardsApply Here
Tata CapitalUpto 50 Lacs17% OnwardsApply Here
Hero Fincorp Small Segment Business LoanUpto 5 Lacs7% OnwardsApply Here

  • ICICI Bank SBLP Plan

ICICI Bank started offering collateral-free business financing for self-help groups (SHGs) consisting of 10–20 women. The highest amount for loans granted under this initiative is Rs. 10 lakh, with a payback period of up to three years.

Eligibility Requirements

  • The minimum lifetime of SHG needs to be at least 6 months.
  • A team of ten to twenty women is allowed to receive funding.
  • A minimum of Rs 5,000 in savings or corpus is necessary.

Check the Features of the SBLP Plan Here

Scheme NameICICI Bank – Self Help Group-Bank Linkage Programme
Interest Rate21.50 p.a
  1. Income Generation 2) Business Expansion 3) Livelihood Activities
Loan TenureUpto 3 Years
Loan Amount1)Customers of other banks can receive up to Rs. 7.5 lakh

2) ICICI Bank customers can get up to Rs. 10 lakh.

CollateralNot Required
  1. Stand Up India Scheme

The Stand Up India Scheme provides financial assistance from banks ranging from Rs. 10 lakh to Rs. 1 crore to at least one female applicant and one SC or Scheduled Tribe applicant per bank branch for the start of a greenfield firm. The enterprise must be involved in agricultural-related operations, producing goods, or trading. In instances of a non-individual firm, at least 51% of the shareholding and controlling interest shall be held by either a SC/ST or a woman applicant.

Check Here the Features of the Stand Up India Scheme

SchemeStand Up India
Interest RateBase Rate + (MCLR) + 3% + Tenor Premium
Loan SizeRs. 10 Lac – 10 Crore
Repayment TermUp to 7 Years + 18 Months’ Moratorium Period
Loan PurposeThe loan is intended to cover 85% of the project’s costs.
CollateralMandatory as principal security or guarantee of the Credit Guarantee Scheme for Stand-Up India Loans (CGFSIL).
  1. PNB Mahila Udyami

To encourage and assist women in generating income through multiple occupations such as the manufacturing process, service, trading, and small businesses. To finance the establishment of an entirely novel division or enterprise as well as the growth and upgrading of a currently operating unit, PNB has launched this scheme.

This Scheme also assists in buying fixed assets (plants, technological devices, pieces of machinery, furniture, and fittings).

To cover financing needs related to the purchase of various items, equipment, and tools for everyday operations.

Eligibility Requirements:

  • Any person who is a woman or woman entrepreneur(s) or enterprise in which women entrepreneurs own at least 50% of the financial holdings. Priority will be allocated to women who hold ST, SC, or BPL cards.
  • Classes of women entrepreneurs are stretched in R-SETIs, skill development organizations, and whatever additional educational institute is given higher priority.
  • The person applying must not have defaulted with any bank or financial organization.
  • Loan facilities availed of by recipients under the government scheme are not acceptable.
SchemePNB Mahila Udyami
Loan Size10 Lacs / May exceed
Repayment Term3-5 Years
SecurityBank finance creates personal security for the borrower or asset.
Loan TypeTerm Loan / Overdraft
  1. KBL MAHILA UDYOG LOAN ( Karnataka Bank)

The KBL Mahila Udyog Loan is only available to female entrepreneurs to cover loan requirements for any income-generating activity. Women applicants own at least 51% of the equity and controlling position in an organization or firm. This loan is available only to women, and the highest possible loan size is Rs. 10 lacs.

Check Here the Features of KBL MAHILA UDYOG LOAN

Loan AmountTerm Loan – Upto 10 Lacs / Working Capital – 2 Lacs
Repayment TenureOD: 12 months

Demand Promissory Note (DPN) up to 34 months

Term Loan. Up to 120 months, including the moratorium period.

Collateral / SecurityHypothecation of belongings created through bank financing, Second, the loan shall be insured under the CGTMSE plan, where permissible.
Margin15 – 30%
  1. Moneyview Loans: Business Loans for Women

If you need a faster loan or immediate cash to make investments in what you’re selling, try Moneyview loans. They offer rapid loans that may be utilized to establish or expand a business.

Maybe you’re looking for a business loan, an SME loan, or any other form of loan, Money View is here. The main thing to remember here is that they offer specialized services to their clients that address what you require from them. This helps them make certain that your demands are met and that you can easily pursue your financial objectives. They promise to pay out the loan sum within a day of receiving your loan application approval.

  1. Stree Shakti Yojna

To be eligible for this scheme, women must hold at least 51% of the company’s share, and the financial assistance amount is restricted to INR 25 lakh. If the loan value is less than INR 10 lakh, no security pledge is necessary. This programme applies to women in the fields of agriculture, schooling, retail, housing, and small-scale financing, with different loan limits for every sector.

For loans of a maximum of INR 2 lakh, the yearly interest rate will be lower than 0.50%, and in addition, there will be no fees for processing.

  1. Annapurna Yojna Scheme

The Annapurna Yojna Scheme, launched by the Indian government, aims to assist women who want to start their own catering businesses. Under this initiative, women can obtain financial assistance of up to INR 50,000 while paying adaptable monthly instalments over 36 months. The scheme’s goal is to help women sell packaged meals like meals for dinner, breakfast, and lunch. Women aged 18 to 55 are approved for the loan in question.

In the current ever-changing economic landscape, female entrepreneurs are outperforming conventional benchmarks and achieving outstanding successes. HDFC Bank recognises the huge potential of women-led enterprises and provides specialized lending plans specifically for women. Here, business loans serve as a powerful catalyst for advancement, providing women with a pathway to financial security, entrepreneurial progress, and greatest achievement, strengthening them to scale new heights by making their dreams come true.

Financial help is provided to firms for a variety of goals, including growth, working capital, and equipment purchases.

Bottom Line

Nowadays, women run approximately 20% of the country’s MSMEs. Both the governing bodies and banking institutions are ready to support and motivate more women to pursue business opportunities.

Arranging an entrepreneurial loan for female business enthusiasts in Indian society has always proven difficult. Fortunately, the development of certain credit packages and fintech firms like Refer Loan has contributed to making it more straightforward than it has ever been for budding female entrepreneurs to receive money and develop their own enterprises.

These initiatives are available to any sole proprietorship or non-individual-owned business with over fifty percent of its female investors. These programmes are easy to access and are frequently subsidized by the governing body.

If you’re looking for more funding right now to make investments in your startup, try Refer Loan’s platform for quick and swift loan options.

Leave a Reply

Your email address will not be published. Required fields are marked *