Business Loans For Women | SBI Loan & Mudra Yojana |  Mahila Udyam Nidhi

Women entrepreneurs are needed to be equally represented in India. But it is not so. Among all, only 14% of the total Indian entrepreneurs are women. It is an alarming number

Although there are women-headed businesses, again, they are not enough. Out of them, only 21% can get any funds or loans.

These are the leading factors behind the harsh fact that women have a share of merely 17% in the total GDP of India

Therefore, the concerning situation of gender discrimination and empowerment of women has affected India.

The government of India, while understanding the intensity of the problem, has launched credit facilities and women loan schemes. These are specially designed for women such as SBL home loan interest rate female schemes.

Addressing SBI Business Loan Schemes for Women: A Pathway to Resolution

Out of many loan schemes for women, Mudra Yojana, Mahila Udyam Nidhi Scheme is the distinguishing one. Women’s empowerment is the core concept behind the prime minister loan scheme for ladies.

Women loan schemes are for women entrepreneurs in India to run and conduct their business ideas effectively and on their own. SBI business loan interest rates are also kept minimum.

Here we are going to discuss them in detail, including the set criteria, interest rate, and other details. So let’s have an overview.

Pradhan Mantri Mudra Yojana scheme for women entrepreneurs

Prime minister loan scheme for ladies, Pradhan Mantri Mudra Yojana is a sound Government scheme.

Women business loan schemes are female-centric schemes aimed at enabling female entrepreneurs to establish and enhance their business ideas.

1. It is to bring them into the mainstream of entrepreneurship. Women dreaming of establishing and furnishing their business can go for Mudra Yojana to avail loan for women for business. They can avail of it through banks and certain financial institutions.
2. Government has introduced small business loan for women to foster their business providing strong basis.
3. To maintain the flow of the cash, just like a credit card, once the loan is accepted, the receiver will get the Mudra Card. This card holds a withdrawal limit of 10% of the loan amount.
4. Business loan interest rates SBI are subsidized and kept minimum to facilitate loans for women.
5. The loans for women are specified for the women entrepreneurs owning non-corporate, on farming, and non-agricultural businesses.
6. Mainly the loan scheme for women focuses on the production and manufacturing sectors to start a business or empower the existing one.

Let’s look into the SBI loan details of significant women business loan schemes designed to provide financial assistance to women entrepreneurs.

Mahila Udyam Nidhi Scheme: An Effective Step To Empower Women Entrepreneurs.

The scheme is launched by the Small Industrial Development Bank of India for state bank of India loan scheme.

The aims of the scheme are as follows:

• To provide credit facilities to women entrepreneurs associated with manufacturing, production, and other industrial services.
• Women’s loan for small businesses help the female entrepreneur gain financial help and assistance.

Prominent features of the Mahila Udyam Nidhi Scheme

• The government loan scheme for ladies will be used for the business, specifically for manufacturing and production services.
• It will also be available in case of updating and growth of already existing business again from the production and manufacturing sectors. The technology can also be updated for such industries via this loan.
• The loans will be provided up to an amount of up to Rs 10 lakhs to the female entrepreneurs.
• Although the funds are powered by SIDBI, still it will be allocated by the banks.
• The allowed repayment period is up to 10 Years, with an available opportunity of expanding the moratorium to 5 years.
• Following the rules, 1% service charges will be charged by the concerned banks per year under this loan program. But there are some exceptions in which the charges will be waived off, all depending upon the lending authority.
• Interest rates for government personal loan schemes have been tried to be kept minimum and subsidized. But they vary from bank to bank depending upon the credit history of the receiver, the type of her business, and the location.

Eligibility Criteria for business schemes for women entrepreneurs

To get a personal loan for ladies from government and for female entrepreneurs, you must meet the following specifications.

• Types of business: The business must be concerned with production, manufacturing, and services to avail this loan for women in India
• For a new business: The women who are launching or running an all-new business are the only ones eligible for the loan.
• Minimum investment Criteria: A minimum investment of 5 lakhs must be made by the business to avail.
• Specific for allowed business: The financial assistance has to be only specified for the allowed business activities.
• A minimum ownership: Female entrepreneurs applying for financial assistance or personal loan for women must own at least 51% of the stake in the company.

Business areas allowed to avail Mahila Udyam Nidhi loan schemes for women

A women entrepreneur must own any of the following businesses to avail of the loan:

1. Mobile repairing center
2. Beauty salon and spa centers
3. Repairing center ( TV, washing machines, refrigerators, LCD, LED, and other electronic appliances)
4. A two-wheeler or four Wheeler repairing garage
5. Cyber Cafes
6. Cable TV network
7. Farm and agricultural tools servicing
8. Photocopying center
9. Laundry and dry clean business
10. Purchasing auto-rickshaws, two or four wheelers aim at business.
11. Training or educational centers.
12. Restaurants, Food points, and Dhabas
13. Road Transport Business

These are the basics and details of Mahila Udyam Nidhi Schemes. Make sure you must meet the eligibility criteria and fulfill all the conditions to get the loan.

Conclusion

Female entrepreneurs are gaining more and more attention in the modern world. Around the globe, countries are trying to mark their significant presence to ensure women’s empowerment and gender equality.

In India, the government has also introduced business loans for women to provide financial assistance to female entrepreneurs.

Mahila Udyam Nidhi women loan scheme is one such prominent scheme to provide  business loan for women at subsidized interest rates with certain conditions. Following particular specifications, women loan scheme can be availed.

You just need to meet the criteria and have a business aligned with those specified grounds, and you are good to go to avail the loan scheme for women.

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