What Are The Five Best Small Business Loans for Women?

According to the data, women-led businesses comprise 20.37% of India's MSME industry. In subsequent years, this figure is expected to rise. In addition, this will increase available jobs across the country.

Given that there are costs associated with operating any firm. The introduction of these business loans for women in India by the Indian government has been beneficial as they can now build their empires.

Here are the top 5 business loans for women.

Stree Shakti Yojana

You have to meet specific requirements in case you want to qualify for this loan. For starters, at least 52% of the company's stock must be owned by you. The maximum amount you can borrow is INR 25 Lakhs. And if you need a loan of less than INR 10 Lakhs, you will not need any collateral.

To qualify for this loan, you must work in agriculture, academia, retail or real estate. The maximum loan amount for the Stree Shakti Yojana varies with different industries. However, you must be enrolled under the State's EDP (Entrepreneurship Development Programme).

Though there is no processing cost involved, the interest rate of this business loan for women is less than INR 2 lakhs.

Scheme of Mudra Yojana

Mudra Yojana Scheme is one business loan for women that was mainly created to help female entrepreneurs start their businesses. It is one of the best schemes as you do not have to pay any collateral.

This scheme is further divided into sub-schemes:

• Shishu, where the amount of the loan is close to INR 50,000
• Kishore, when the loan is between INR 50,000 and INR 5 lakhs.
• Tarun, where the loan amount is close to INR 10 lakhs.

You can repay the loan within 1 to 5 years, and 0.50% is the loan amount's processing fee.

Scheme of Udyogini

The Indian government's WDC (corporation of women's Development) defines the Udyogini scheme. This is one business loan for women which financially assists women besides providing motivation and needful support.

This scheme helps illiterate women living in rural areas of India. If you are between 18 and 55, you can opt for a loan of up to INR 3 lakh. You can apply for this business loan for women if you earn almost 1.5 lakh pa.

Scheme of Annapurna Yojana

If you are in the catering business, this business loan for women offers loans of up to INR 50,000. When you opt for this loan, you can consecutively make flexible payments for 36 months.

The goal of this business loan for women is to help ladies sell packaged food like dinner, lunch, and breakfast. If you are aged 18 and 55 years, you are eligible for this loan.

Scheme of Synd Mahila Shakti

New and existing women entrepreneurs can opt for the Synd Mahila Shakti scheme. To be eligible for this business loan for women, you must have a 50% stake in the business, and no processing fee is involved.

You can also avail of a loan of 1 crore, which is capped at INR 5 crores. The interest rate of this business loan is 10.25% if your loan amount is INR 10 lakhs. If your loan amount is above INR 10 lakhs, you can avail of a 0.25% discount on the extra amount.

Conclusion

It was not all this simple to take a business loan for women, but with the introduction of a gazillion loan scheme, life has become easier. If you want to start your business, opt for one of these loans and start your own company today!