According to statistics from the Government of India’s official website, India houses the second largest start-up ecosystem in the world. As a woman entrepreneur, capitalising on the upswing in new ventures is easier than ever as you have a number of funding options designed especially for you. These range from exclusive business loans for women to impressive schemes announced by the Government of India. To judge which option will suit you best, learn about these 3 outstanding funding solutions for women entrepreneurs.
Mudra Yojana Scheme
Launched in 2015, the Mudra Yojana Scheme is designed to meet the funding needs of small and micro enterprises. This finance solution offers you collateral-free funding up to Rs.10 lakh. MUDRA scheme comes in three different variants Sishu, Kishor and Tarun.
The loan amount on a Shishu loan, which is designed for businesses in their early stages, is capped at Rs.50,000. Kishore loan on the other hand are targeted at already established businesses that require additional financing. The loan amount here runs up to Rs.5 lakh. Well-established businesses can avail of funding up to Rs.10 lakh through a Tarun loan. Interest rates for the loans under the MUDRA scheme are based upon the MCLR rate.
Recent reports indicate that women entrepreneurs have been the main beneficiaries of this scheme. Consider this scheme if your enterprise specialises in trade, manufacturing, agriculture-related activities or in the service sector. You can apply for this scheme by either visiting your financiers branch or online via MUDRA’s official website.
Stand Up India Scheme
This scheme was rolled out by the Government of India in 2016 to help women and SC/ST entrepreneurs set up businesses, specifically greenfield projects. That is, you can utilise the scheme to fund a service, trade, or manufacturing-sector project that you are venturing into for the first time.
By availing of the Stand Up India Scheme, you can bolster your finances by obtaining large funding to the tune of Rs.1 crore. The scheme seeks to provide bank loans of Rs.10 lakh up to Rs.1 crore to women and SC/ ST persons. The scheme makes provisions for at least one beneficiary per bank branch. As a beneficiary, you should use the loan to set up a greenfield project. The composite loan you obtain covers 75% of your project’s cost.
You can also obtain this loan for your enterprise provided that you are the major shareholder in it. The scheme lets you profit from the lowest interest rate the bank has for the category you fall under and additionally prohibits the rate from exceeding the tenor premium + 3% + MCLR.
While you can get substantial funding coupled with a tenor of up to 7 years and an 18-month moratorium period to set up your business venture, you may need to pledge a security in order to avail of this loan.
So, go ahead with favourable sources of business finance by making use of one of these finance solutions and light the way for women entrepreneurs everywhere!