List of Small Business Loans for Women in India

Updated on: 04 Jan 2024 // 4 min read // Business Loans
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In the present-day ecosystem of the Indian economy, it is not difficult to find an unprecedented number of women entrepreneurs joining the start-up wagon. Right from kick-starting home-based businesses, to launching high-end brands and tech companies, women have taken charge in a massive number. And why not? After all, there is a wider array of small business loans for women entrepreneurs, designed to offer the much-needed capital in a way that is both, cost-effective and flexible.

If you happen to be a female entrepreneur willing to give wings to your dream start-up, here’s a consolidated list of business loan for women which can help you realise your dream in the most convenient manner possible.

1. Stree Shakti Package by SBI

Offered by the State Bank of India, Stree Shakti Package is devised to support women entrepreneurs financially from all across the nation. Women with at least 50% ownership in a firm, and who have participated in Entrepreneurship Development Programmes (EDP) run by the government are considered eligible for this loan.

One of the most remarkable perks of this loan is that the borrower is offered the loan at a discounted interest rate, which is 0.5% less than the prevailing market rate (if the loan amount exceeds Rs. 2 lakh).

2. Dena Shakti Scheme

Offered by Dena Bank, Dena Shakti Scheme is designed to empower women financially for businesses in the fields of:

  • Agriculture
  • Manufacturing
  • Education
  • Housing
  • Micro-Credit
  • Retail Stores
  • Small Enterprises

The maximum loan amount for woman entrepreneurs in the field of Retail Trade, housing and Education is Rs. 20 lakh, while that for women in micro-credit businesses is Rs. 50,000.

What makes this loan truly remarkable is the fact that it offers a concession of 0.25% in the interest rates. 

3. Udyogini Scheme by Punjab and Sind Bank

Offered by Punjab and Sind Bank, the Udyogini Scheme is designed to financially assist prospective women entrepreneurs who wish to start a small business pertaining to the agriculture or retail segment. It also offers assistance to self-employed professionals.

The maximum loan amount offered under this scheme is determined on the basis of the purpose for which the loan is required and the ability of the borrower to repay the loan amount. The rate of interest charged on the disbursed amount is in line with the prevailing market rates for loans offered to MSMEs.

Under the Udyogini Small Business Loan for women, no processing fee is levied. You do not need any collateral for loan amounts up to Rs. 25,000.

4. Mahila Udyam Nidhi Scheme by PNB

Offered by Punjab National Bank, this scheme has been formulated to provide financial assistance to female entrepreneurs in the form of soft loans.

The maximum loan amount offered under this scheme is Rs. 10 lakh, which can be conveniently repaid over a period of 10 years.

What makes this scheme unique is that it offers distinct plans for various purposes such as –

  • Purchase of Car/Two-Wheeler
  • Purchase of Auto Rickshaw
  • Opening up Day Care Centres
  • Setting up Beauty Parlours

5. Cent Kalyani Scheme by Central Bank of India

Offered by the Central Bank of India, this scheme is designed to provide financial assistance to women seeking to establish a new business or to modify or expand an existing one. Women pursuing the following fields can receive a loan under Cent Kalyani Scheme –

  • Village and Cottage Industries
  • Micro, Small and Medium Enterprises
  • Self-Employed Women
  • Agriculture
  • Allied Activities
  • Retail Trade

Women entrepreneurs registered under Government-Sponsored Programs are also eligible to apply for business loans under this scheme.

The maximum loan amount under this scheme is Rs. 1 crore.

You do not require any collateral to avail this loan. Besides, the bank does not levy any processing fee on this loan.

6. Orient Mahila Vikas Yojana

Offered by the Oriental Bank of Commerce, Orient Mahila Vikas Yojana is designed to assist businesswomen who hold at least 51% of their share in a business, either individually or jointly. One can avail of collateral-free loans up to Rs. 10 lakhs in general, and up to Rs. 25 lakh for small-scale industries. The loan can be conveniently repaid over 7 years.

What separates this loan from its counterparts is the fact that it offers a significant concession of up to 2% in the interest rates to women borrowers.

7. MUDRA Yojana Scheme for Women

Launched under the aegis of the Government of India, this scheme has been launched to support female entrepreneurs who are looking forward to working individually or in groups towards the setting up –

  • Beauty Parlours
  • Tailoring Units
  • Tuition Centres

Under this scheme, women entrepreneurs can enjoy financial assistance in one of three distinct categories

  • Shishu: As the name indicates, this category is for businesses in their nascent stage, wherein they can avail a loan amount of up to Rs. 50,000.
  • Kishor; This category is designed for established businesses that are in need of working capital. The loan amount offered under this category is between Rs. 50,000 and Rs. 5 lakh.
  • Tarun: Designed for well-established businesses that require additional funds to expand, this category offers loan amounts of up to Rs. 10 lakh. 

This business loan for women does not need the borrower to offer any collateral in lieu of the disbursement. Besides, borrowers are also entitled to receive a Mudra Card, which is essentially a credit card that comes with a spending limit of 10% of the loan amount.