What are the Best Government Loan Schemes for Women?

Posted by Amir Azam on January 21st, 2021

If as women you want to start a business, small or medium, the first thing you will need is funds.  Getting the loan is easy, knowing the right government loan schemes for women can surely help you in a long way. You get a big loan amount to sustain the business for a long time without worrying. 

In this short post, we will focus on those government personal loan schemes for women. 

We will here start with Mudra Yojana, then  move on to others. 

Mudra Yojana Scheme for Women

The Mudra Yojana was launched in 2015 by the Indian government to boost the SMEs. Its official name is Pradhan Mantri Mudra Yojana(PMMY). 

The aim of the scheme is to provide the necessary support to a woman, who wants to start their own businesses. It easily helps to acquire funds and scheme to run the business. 

Features of This Scheme

• There are three categories to offer the loan amount. They are Shishu, Kisrore and Tarun. 
• The loan amount is available up to Rs 10 lakhs. 
• There is no need for collateral. 
• The interest rates are affordable depending upon the borrower's profile. 
• The loan repayment tenure could go up to 7 years. 

How to Apply for Mudra Yojana? 

To apply for Mudra Yojana, you have to visit its official website. There download the application form, fill out the form. Now, submit the loan application to your nearest bank along with other documents. 

Once the details are verified, the loan amount is disbursed directly into the bank account. Because of its low interest rate and easy availability, this scheme has been touted as one of the government personal loan schemes for women. Now, let’s move on to the next scheme.

Bhartiya Mahila Bank Business Loan

This is not exactly a government scheme, but rather a scheme from a bank only for women entrepreneurs. You are free to use the money for either business expansion or for working capital requirements. 

• The loan amount is offered up to Rs 20 crores. 
• The collateral free loan amount is available up to Rs 10 crore. 
• The loan tenure is up to 7 years. 
• The rate of interest is from 10.15% to 13.65% P.A 
• The processing fee varies from bank to bank. 

The Eligibility Criteria

• Co- op societies
• Partnership firms
• Sole proprietor
• Private limited companies

Required Documents for this Scheme

• Proof of identity
• Proof of residence
• Proof of business address
• Proof of minority 
• Rent agreement papers
• Projected balance sheet for the next two years
• Memorandum and articles of association of the company
• Partnership deal of partner
• SSI/MSME registration if application 

You can go to the bank to gather the latest information and apply for the loan. Now, let’s move on to the next lender. 

Annapurna scheme

So, this scheme for those women who want to make a name in the food business. This special scheme is launched by State bank of Mysore. As we said,  the scheme is primarily aimed at offering support for setting up kicks, food catering business etc. 

• The loan amount is offered up to Rs 50,000 under this scheme. 
• The loan tenure is up to 3 years. 
• The first month EMI is waived off. 
• The rate of interest depends upon market rate. 

Due to its popularity, it has been considered one of the best government loan schemes for women. You can apply for it online as well as offline. 

The conclusion

Every scheme is great. The only thing you have to figure out is which one is best for you. Once you know, focus on knowing every bit of little information you need to know to apply for the loan.