Various Schemes of Ministries and Banks empowering Women Entrepreneurs in India:
1. Ministry of MSME, GOI:
Prime Minister Employment Generation Programme (PMEGP)
The scheme is implemented by Khadi and Village Industries Commission (KVIC), functioning as the nodal agency at the national level. At the state level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs), and banks. In such cases, KVIC routes government subsidies through designated banks for eventual disbursal to the beneficiaries/entrepreneurs directly into their bank accounts.
For beneficiaries belonging to special categories such as scheduled caste/scheduled tribe/women, the margin money subsidy is 35% in rural areas and 25% in urban areas.
Mudra Yojana Scheme for Women
The Government of India has launched this schemeto encourage women to start their ventures and be self-sufficient. Women entrepreneurs need not submit any collaterals to avail of this loan. On getting verified, the concerned person will receive a Mudra card, which is like a credit card and can be used to buy required materials for the business.
The scheme comes in three forms, which are as follows:
Shishu – Under this scheme, the maximum loan amount is limited to Rs. 50,000
SKishor –An established enterprise can avail of loans ranging from Rs. 50,000 to Rs.5 lakhs
Tarun – Successful companies looking to expand further can get a loan up to Rs. 10 lakhs
TREAD (Trade-Related Entrepreneurship Assistance and Development) Scheme
To run any business successfully, one needs certain expertise, which would further help build the enterprise in a better way to compete in the market. To achieve this crucial step, PMEGPs initiated theTREAD scheme to empower women by providing credit to projects, conducting specific training and counseling, and disseminating knowledge for their business. The scheme provides for a government grant of up to 30% of the total project cost as appraised by lending institutions. These institutions would finance the other 70%.
Mahila Udyam Nidhi Scheme
Initiated primarily to offer financial assistance up to Rs 10 lakhs to small-scale business models, this scheme aims to help women set up new projects and promotes upgrading and modernization of existing projects. With interest rates varying according to the market rates, the loans are to be repaid within 10 years, including a five-year moratorium period.
As the name suggests, this scheme is especially for the hidden chefs inside women. Even a hobby as amazing as cooking can now make you an entrepreneur with the Annapurna Scheme. To start a catering unit, women can avail of loans up to Rs 50,000 to purchase kitchen equipment, such as utensils and water filters. Collateral in the form of assets and a guarantor is required to avail of this scheme, and the loan must be repaid within 3 years. Women who avail of this loan also get a grace period of one month before the repayment process starts. Interest rates under this scheme vary as per market rates, and assets will be taken as collateral by the concerned bank.
Stree Shakti Package for Women Entrepreneurs
To avail loan under this scheme, women must be enrolled in the Entrepreneurship Development Programme (EDP) in their respective state agencies. They also need majority ownership (over 50%) in a small business. Under the scheme, an interest concession of 0.05 percent can be availed on loans above Rs 2 lakh.
Bhartiya Mahila Business Bank Loan
The loan offered by the Bhartiya Mahila Business Bank focuseson providingfinancial assistance to underprivileged women. Women under this scheme can avail of loans up to Rs 20 crores to be repaid within7 years. Loans up to Rs 1 crore under the Credit Guarantee Fund Trust for Micro and Small Enterprises do not need any collateral to be submitted. The base interest rate on this loan is 10.25% to which an additional 2% is added, making the interest rate 12.25%. In an inspiring story mentioned on yourstory.com, Nirmala Devi became financially independent by receiving a loan of Rs 25,000 from BharatiyaMahila Bank to set up a shop in Aant village. Similarly, the bank disbursed Rs 5 lakh to a women entrepreneur in Gujarat to make chocolate bouquets.
Dena Shakti Scheme
Women entrepreneurs involved in agriculture, manufacturing, micro-credit, retail stores or similar enterprises can avail of loans under this scheme. Under the micro-credit category, loans offered are up to Rs 50,000 with a concession of 0.25% on the interest rate. Loans of up to Rs 20 Lakhs are sanctioned under education, housing, and retail trading categories.
Cent Kalyani Scheme
Women business owners who manage MSMEs, are involved in agricultural work, or engage in retail trading can avail of a loan under this scheme. Loans up to Rs 1 crore are sanctioned, and no collateral or guarantors are required with interest rates depending on the market. In addition, loan available to women entrepreneurs under this scheme does not include any processing fee.
Women entrepreneurs involved in agriculture, retail, and similar-small businesses between the agesof 18 and 45, whose family's annual income is less than Rs 45,000, are eligible to avail of loans up to Rs 1 Lakh. The Udyogini Scheme comes with several advantages, some of which are low-interest rates on business loans, no income limit for widowed, destitute or differently-abled women, and a subsidy of 30% of the loan, or Rs 10,000 (whichever is lower) is provided for them. Similar is the case for women falling under the SC/ST category. For women in the general category, a subsidy of 20% of the loan or Rs 7,500 (whichever is lower) is provided.
2. Ministry of Food Processing Industries (MoFPI),GoI:
MoFPI, in partnership with the State/ UT Governments, has launched the centrally sponsored Pradhan Mantri Formalisation of Micro food Processing Enterprises (PMFME) Schemefor providing financial, technical, and business support for the up-gradation of existing micro food processing enterprises with 35% subsidy up to a maximum of 10 lacs.
The scheme lays special focus on SC/ST, women, aspirational districts and FPOs, SHGs, and producer cooperatives.
Ministry of Skill Development and Entrepreneurship, GoI: Vocational Training Program for Women
Women training under the Ministry of Skill Development and Entrepreneurship provides skill training to the country's women. It offers employment opportunities to women from different socioeconomic levels and ages.
Women Vocational Training Program (WVTP) was formulated and started in 1977 to involve women in economic activities. This project on vocational training for women was prepared in March 1977 with the assistance of the Swedish International Development Authority (SIDA) and the International Labour Organization (ILO). Under this project, such professional trades were identifiedas particularly suitable for women and their implementation plans.
The Women Vocational Training Program encourages vocational training for women for wage employment in the industry as instructors and encourages them to be self-employed.
- Industrial Skill Training under Craftsman Training Scheme (CTS)
- Instructor Skills Training under the Craft Instructor Training Scheme (CITS)
- Demand based short term course
- Special Program for Training of ITI Instructors
- Tailored courses as per industry demand
4. Stand Up India scheme
This scheme provides loans to entrepreneurs from the SC/ST tribes and focuses on promoting women entrepreneurs. It aids women in creatingtheir startupsand helps the recently set up startupstackle the initial operational challenges.
With the help of this scheme, women can avail of loans ranging from Rs. 10 lakhs to Rs. 1 crore. It must be noted here that loans are provided for setting up Greenfield enterprises in the manufacturing, services, or trading sectors. www.standupmitra.in
5. NABARD- Scheme for Promotion of Women SHGs (WSHGs) in Backward & LWE Districts of India
In association with Govt. of India, this scheme promotes and provides finances to Women Self-Help Groups (WSHGs). The scheme aims to saturate the districts with viable and self-sustainable WSHGs by involving anchor agencies who shall promote & facilitate credit linkage of these groups with Banks, provide continuous handholding support, enable their journey to livelihoods, and take responsibility for loan repayments.
CGTMSE for collateral-free loans up to 200 lakhs under Credit Guarantee Scheme for MSMEs www.cgtmse.in
7. PM SVAnidhi:
For supporting street vendors for loans up to Rs 10,000 at low-interest rates during the pandemic www.pmsvanidhi.mohua.gov.in
9. Educational Loans:
For supporting ITI, Professional and Technical Education,and Foreign studies. Interest reimbursement during course completion period whose parents' income is up to 4.5 lakhs for collateral-free and domestic study loans.
10. PM Awaas yojana:
Those withan annual income of less than 18 lakhs will get a concession in interest in Housing loans from 3 to 6.5%, givingan upfront benefit of 2.67 lakhs.