We are post the days when our society was dominated by males; now it’s different, in contemporary times, women are breaking the trend and coming out of the shadows in an all-powerful avatar. In the past couple of decades, the status of women in Indian society has changed drastically. Indian women have come a long way from being just a homemaker to business, inventions, and leading new ideas. In the current era, women are playing a vital role in the growth of the Indian economy and have made a big impact and got success in almost every sector. This is the scenario in the Indian corporate and business world today, where women are leading top ventures & ideas, and making the nation proud by becoming a great leader & entrepreneur. Not just that, but women entrepreneurs are also being influential to other women of India as well as in globe.
Though, India continues to witness immensely successful women entrepreneurs like Indra Nooyi, Kiran Mazumdar Shaw, Chanda Kochar, and Shahnaz Hussian, to name a few of them, still women continue to be a distinct minority in the booming entrepreneurial space. Reasons behind this is numerous – for several women conditioning, patriarchy and lack of social support from their own families may be a few reasons, however for the majority, lack of financial capital acts as a major barrier on their entrepreneurial journey. However, to deal with such roadblocks, and as a way of encouraging such businesses, Indian Government and financial institutions have introduced several schemes and policies that all women entrepreneurs need to be aware of. Let’s have a look.
Annapurna Scheme: Build Your Own Food Catering Unit
Under this scheme, the Government of India offers women entrepreneurs in food catering business, loans upto ₹ 50,000. The loaned amount could be used for working capital requirements such as buying utensils, cutlery, gas connection, refrigerator, mixer cum grinder, hot case, utensil stand, tiffin boxes, working table, water filter and much more. Currently, this scheme is offer by Bharatiya Mahila Bank, and State Bank of Mysore. The conditions are:
Bharatiya Mahila Bank Business Loan: Start Your Own Business with Ease
Bharatiya Mahila Bank (BMB) started as a bank that focused on providing finances to underprivileged women who wanted to start their own businesses. The business loan scheme was implemented by BMB which was later merged with State Bank of India in 2017. As a public sector banking organization established in 2013, it offered women entrepreneurs’ business loans up to ₹ 20 crore for meeting working capital requirement, business expansion, or manufacturing enterprises. It also offers special business loans with a lucrative rate of interest and grants collateral-free loan up to ₹ 1 crore under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) cover. Women entrepreneurs are also offered 0.25 percent concession in interest rate. It includes a combo of working capital and term loan. The repayment tenure is flexible and has to be repaid within seven years.
Some of the different plans under the scheme include:
Cent Kalyani Scheme: Empowering SMEs & Agriculture Entrepreneurs
This scheme under the Central Bank of India can be availed by both existing and new entrepreneurs and self-employed women for micro/small enterprises like farming, handicrafts, food-processing, garment making, beauty, canteen, mobile restaurants, circulating libraries, day centers, STD/Xerox booths, tailoring and more. Basically, this scheme is ideal for women who manages SMEs or is involved in agricultural work or engages in retail trading.
Dena Shakti Scheme: Business/MSME loans for Individuals
The Dena Shakti scheme for women is a solution for those who want to make a business out of manufacturing goods and agricultural work.
Mahila Udyam Nidhi Scheme: Providing Financial Assistance at Concessional Interest Rates
Offered by Punjab National Bank and Small Industries Development Bank of India (SIDBI), this scheme aims to supports women entrepreneurs to set up a new small-scale venture.
Under this scheme, SIDBI offers different plans for beauty parlours, day care centers, purchase of auto rickshaws, two-wheelers, cars, and more. It also assists with upgrading and modernization of existing projects.
Mudra Yojana Scheme: Promoting Entrepreneurship Among the New Generation Aspiring Youth
This is a general scheme for small units that women entrepreneurs can avail of too. Offered by nationalized banks under the Pradhan Mantri Mudra Yojana, this can be used to set up beauty parlour, tuition center, tailoring unit, and more. Loans between ₹ 50,000 to ₹ 50 lakh are sanctioned under this scheme. No collateral and guarantors are required for loans below ₹ 10 lakh.
The scheme has three plans:
Orient Mahila Vikas Yojana Scheme: Designed For Self-Employed Women & Those Who Want To Set Up a Beauty Parlor/Salon
Launched by Oriental Bank of Commerce, Orient Mahila Vikas Yojana aims at providing women with the capital they required for starting small businesses. Conditions are:
Stree Shakti Package for Women Entrepreneurs: Offering Concessions to Empower Women Entrepreneurs
The Stree Shakti Package is a unique SBI-run scheme to support entrepreneurship among women by providing certain concessions. This scheme is eligible for women who have majority ownership (over 50 percent) in a small business. Another requirement is that these entrepreneurs have to be enrolled in the Entrepreneurship Development Programmes (EDP) organized by their respective state agency.
TREAD (Trade Related Entrepreneurship Assistance and Development) Scheme: Economic Empowerment for Women through Credit, Training and More
This scheme aims to empower women by providing credit to projects, conducting specific training and counselling, and eliciting information on related needs.
Looking at the future prospects for Development of women entrepreneurs the emergence as well as development of women entrepreneurs is quite visible in India and their over-all contribution to Indian economy is also very significant. To this vision, these schemes will add a boost, as it’s meant for women and leveraging it, many women entrepreneurs have achieved remarkable success.