Four helpful loans for women entrepreneurs to raise funds
If you are a women entrepreneur in needs of funds, check out a few government schemes that can help
Every businessperson at some point needs funding for a business. It could when starting out or to scale. If you are a women entrepreneur in needs of funds, check out a few government schemes that can help.
Stand Up India
It's a working capital loan to meet all kinds of credit requirements. The targeted group for this loan is women entrepreneurs and Scheduled Castes and Scheduled Tribes.
The minimum and maximum loan offered in the scheme is ₹10 lakh and ₹1 crore, respectively. While the loan doesn't require collateral, the borrower must have a guarantor. The maximum repayment period is seven years.
Union Nari Shakti
The loan is available from the Union Bank of India for women sunning micro, small and medium enterprises. The woman borrower should hold at least 51% stake in the business.
Women borrowers can use the scheme to purchase, construct, or renovate factory, office shop, or warehouse. They can also avail it fro purchase of plan and machinery and other equipment.
The minimum and maximum loan is ₹2 lakh and ₹2 crore, respectively. The repayment period is up to 84 months. The bank could ask for collateral.
Udyogini Scheme
There are specific conditions to avail loan under this scheme. The borrower should be between 25 and 65, and the family income should be less than ₹1.5 lakh a year. It's targeted towards women from rural and under-developed regions. The borrower can get up to ₹3 lakh under the scheme for her small business.
IDFC FIRST Bank Sakhi Shakti
The bank provides various credit and savings solutions to meet the needs of rural households. Women can apply for a Sakhi Shakti Livelihood Advancement Loan with any basic identification such as Aadhaar. Once on-boarded, they will have to undergo group training to educate them on all aspects and mechanics of the loan and its terms.
(Do you have personal finance queries? Send them to mintmoney@livemint.com and get them answered by industry experts)
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