Women Entrepreneurs rejoice! 9 credit schemes for easy loans

Published on 22 Feb 2018 by Tushar

1. CGTMSE- credit guarantee/ no collateral loans

  1. Under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), there is no requirement of collateral security for a loan of up to Rs. 1 crore.
  2. A brainchild of the Ministry of Micro, Small and Medium Enterprises, the CGTMSE Scheme is a unique offering which aims to bridge the gap between a business idea and its execution, offering financial support to entrepreneurs.
  3. Under the scheme, eligible members can get credit facilities from banks to finance medium and small enterprises.
  4. This Credit Guarantee offers security to entrepreneurs in the event of their business failing. A maximum cover equivalent to 85% of the loan amount is available under the scheme.
  5. In cases where a borrower is unable to repay the loan, the scheme will cover the loss, paying lending institutions the financial loss incurred by them due to non-repayment of loan.
  6. The quantum of repayment depends on the amount borrowed, the borrower (male/female) and the purpose of loan.

2. Annapurna Scheme

  1. This scheme is offered by the State Bank of Mysore for those women entrepreneurs who are setting up food catering industry in order to sell packed meals, snacks, etc.
  2. The amount granted as a loan under this scheme can be used to fulfil the working capital needs of the business like buying utensils and other kitchen tools and equipment. 
  3. Under this loan, a guarantor is required along with the assets of the business being pledged as collateral security.
  4. Further, the maximum amount of money that is granted is Rs. 50,000 which has to re-paid in monthly instalments for 36 months, however, after the loan is sanctioned, the lender doesn’t have to pay the EMI for the first month.
  5. The interest rate is determined to depend upon the market rate. 

3. Stree Shakti Package For Women Entrepreneurs

  1. This scheme is offered by most of the SBI branches to women who have 50% share in the ownership of a firm or business
  2. Have taken part in the state agencies run Entrepreneurship Development Programmes (EDP). 
  3. The scheme also offers a discounted rate of interest by 0.50% in case the amount of loan is more than Rs.2 lakhs. 

Who can avail benefits- “Woman Entrepreneurs”

As per definition, a Women Entrepreneur business is- “A small-scale industrial unit / industry related service or business enterprise managed by one or more women entrepreneurs in proprietary concerns or in which she/they individually or jointly have a share capital of not less than 51% as partners /shareholders/Directors of Private Limited Company/Members of Co-operative Society.

Scheme benefits

Loan in the form of term loan or working capital can be provided under the Stree Shakti package. The quantum of loan provided would be based on the borrower profile and the following guidelines:

• Retail traders: Rs. 50000 to Rs.2 Lakhs
• Business enterprises: Rs. 50000 to Rs.2 Lakhs
• Professionals: Rs. 50000 to Rs.25 Lakhs
• SSI: Rs. 50000 to Rs.25 Lakhs

As the package is aimed at Women Entrepreneurs, concessions or relaxations in margin is inbuilt into the scheme along with a low floating rate of interest, linked to the base rate of the bank

  1. No collateral is required for loan of up to Rs.10 lakhs, extended to MSME enterprises owned by Women Entrepreneurs.
  2. Further, loans to women entrepreneurs of up to Rs.100 lakhs that can be covered under the CGTMSE scheme also requires no collateral.
  3. However, collateral is a must for any loan above Rs.1 crore or based on the borrower profile.

4. Bharatiya Mahila Bank Business Loan schemes

Bharatiya Mahila Bank, formed for the empowerment of women entrepreneurs in India have special schemes for assisting women to help them set up - 

  1. Beauty parlour or salon or spa;
  2. Catering or food business;
  3. Daycare centres/ pre-schools;
  4. SME Easy Loan

These schemes are a support system for budding women entrepreneurs looking to start new ventures in the fields of the retail sector, MICRO loans, and SME loans.

Loan for Beauty Parlour

  1. The loan is provided for the purchase and/or construction of parlour or salon or spa, purchase of tools and equipment and meeting day to day expenses of the business.
  2. The loan is available for women entrepreneurs within the age of 20 years to 60 years under the collateral free CGTMSE Scheme.
  3. Repayment can be made over 7 years at a rate of interest of 12%.

Loan for Food Catering and Restaurants

  1. Bharatiya Mahila Bank and State Bank of Mysore operate a special scheme for assisting women to establish food catering unit for selling tiffin or lunch packs. 
  2. Women entrepreneurs between the age of 18 and 60 can avail this loan without any collateral under the CGTMSE Scheme.
  3. Repayment must be made within 3 years at a rate of interest of 11.5%.

Loan for Day Care Centre

  1. The loan is provided by Bharatiya Mahila Bank and Punjab National Bank to women entrepreneurs for establishing a preschool or child day care centre and purchase of required equipment.
  2. Women entrepreneurs between the age of 21 to 60 can avail the BMB Parvarish loan scheme without any collateral security under the CGTMSE scheme. Loan repayment must be made in 5 years and a 12% rate of interest is applicable.

SME Easy Loan

  1. Under the scheme, a combination of working capital and/or term loan can be sanctioned for traders or service providers or manufacturers.
  2. Loan sanctioned under the BMB SME easy scheme have a tenure of up to 7 years and a 12.25% rate of interest is applicable.
  3. A loan under Rs.1 crore will be covered under the CGTMSE scheme.
  4. Maximum loan amount of up to Rs.20 crore can be provided under the scheme.

5. Dena Shakti Scheme

This scheme is a solution for those who want to make a business out of manufacturing goods and agricultural work.

  1. Loans of up to Rs. 20 Lakhs are sanctioned under the category of education, housing, and retail trading
  2. Under the category of microcredit, loans of up to Rs. 50,000 are offered
  3. You are offered a concession of 0.25% on the rate of interest.

6. Cent Kalyani Scheme

  1. This scheme is offered by the Central Bank of India with the aim of supporting women in starting a new venture or expanding or modifying an existing enterprise.
  2. This loan can be availed by women who are involved in village and cottage industries, micro, small and medium enterprises, self-employed women, agriculture and allied activities, retail trade, and government-sponsored programs.
  3. This scheme requires no collateral security or guarantor and charges no processing fees. And the maximum amount that can be granted under the scheme is Rs. 100 lakhs. 

7. Mahila Udyam Nidhi Scheme

  1. This scheme was launched by Punjab National Bank and aims at supporting the women entrepreneurs involved in the small-scale industries by granting them loans that can be repaid over a period of 10 years (includes a moratorium period of maximum 5 years).
  2. Mainly targets the small-scale sector and promotes upgrading and modernisation of existing projects.
  3. Under this scheme, there are different plans for beauty parlours, day care centres, purchase of auto rickshaws, two-wheelers, cars, etc.. 
  4. Loans of up to Rs. 10 Lakhs are sanctioned
  5. Interest rates vary according to market rates

8. Mudra Yojana Scheme for Women

Ideal for women wanting to start small new enterprises and businesses like beauty parlours, tailoring units, tuition centres, etc. as well as a group of women wanting to start a venture together.

The loan doesn’t require any collateral security and can be availed as per the following 3 schemes based on the stage of business development-

  1. Shishu- loan amount is limited to ?50,000 and can be availed by those businesses that are in their initial stages.
  2. Kishor- loan amount ranges between ?50,000 and ?5 lakhs and can be availed by those who have a well-established enterprise. 
  3. Tarun- loan amount is ?10 lakhs and can be availed by those businesses that are well established but require further funds for the purpose of expansion

Mudra Card

If the loan is granted, a Mudra card will be given to you which functions the same way as a credit card however the funds available are limited to 10% of the loan amount granted to you. 

9. Orient Mahila Vikas Yojana Scheme

This loan scheme aims at providing women with the capital they require for starting small businesses. This scheme was initiated by Oriental Bank of Commerce

  1. You must have a minimum of 51% of ownership in the business you want a loan for
  2. A concession of 2% on the rate of interest is offered
  3. You must repay the loan within 7 years
  4. If your loan amount is below Rs. 10 Lakhs, a collateral is not needed
  5. In case of SSI (Small Scale Industries), up to a number of Rs. 25 Lakhs, a collateral is not needed.

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