The MSME ecosystem in India is comprised of innovative approaches and productive solutions to a number of difficulties. But several women entrepreneurs and business owners are much more moderate than male entrepreneurs.
As per data from Startup India, only 13.76 % of the entire business people in India are women. There are only around 8 million female entrepreneurs, but the number of male entrepreneurs has spanned 50 million. Governments at the central and state levels have started financial schemes for micro-units, which could run a great way in promoting women entrepreneurship.
Primary Schemes to enable Women
- Mudra Yojana Scheme:
This global government scheme for small units is also appropriate for women who want to begin a small enterprise such as a beauty parlor, tuition center, etc. It is also helpful for a society of women who want to startup together. Credits from Rs 50,000 onwards and up to Rs 50 lakh are approved under this scheme. Security and guarantors are needed only if the loan amount surpasses Rs 10 lakh.
- Bhartiya Mahila Business Bank Loan:
This scheme requires a loan of up to Rs 20 crore for women business owners of manufacturing enterprises. Below the Credit Guarantee Fund Trust for Micro and Small Enterprises, there is no shortage of collateral for loans up to Rs 1 crore. The loans under this bank loan scheme are to be returned in seven years. The scheme was executed by the Bhartiya Mahila Bank, which was consolidated with State Bank of India in 2017.
Projects to Support Women Entrepreneurship
- Trade Related Entrepreneurship Assistance and Development Scheme (TREAD) :
Aims to enable women by offering credit to projects, managing particular training and counseling, and obtaining information on related requirements. The plan affords for a government allowance of up to 30 % of the absolute project cost as calculated by lending institutions. These institutions would fund the other 70 %.
- Mahila Udyam Nidhi Scheme:
Presented by Small Industries Development Bank of India (SIDBI), this scheme gives financial support of up to Rs 10 lakh to establish up a new small-scale enterprise. It also assists with upgrading and modernization of surviving projects. The loans are to be returned within 10 years, and this consists of a five year cessation period. Moreover, interest rates on these loans can change according to market rates.
- Annapurna Scheme:
This scheme applies to women entrepreneurs who have begun a food catering unit. They can avail credit of up to Rs 50,000 to buy kitchen equipment such as appliances and water filters. A sponsor is needed to obtain the loan. After obtaining the loan, it can be returned in 36 installments. Moreover, interest rates below this scheme as per predominating rates and assets will be taken as guaranteed by the concerned bank.
- Stree Shakti Package for Women Entrepreneurs:
It is administered to women who have bulk ownership in a small business. The women also require to be enrolled in the Entrepreneurship Development Programs (EDP) organized by their respective state agency. Under the scheme, an interest concession of 0.05 % can be availed on investments above Rs 2 lakh.
- Udyogini Scheme:
Women entrepreneurs within the ages of 18 and 45, who is concerned with agriculture, retail, and comparable small businesses, can avail loans up to Rs 1 lakh beneath this scheme. Moreover, her family’s yearly income should be below Rs 45,000 in order to obtain the loan. Still, no income limit exists for widowed, impoverished or injured women.
- Cent Kalyani Scheme:
Submitted by the Central Bank of India, this plan is for women entrepreneurs in recurring areas such as agricultural work or retail trading. Beneath this project, loans up to Rs 1 crore are authorized and no security or sponsors are needed. Interest rates on loans rely on changing market standards.