Find the ideal financial help for your business goals, including loans with flexible repayment plans and no collateral
Women entrepreneurs face unique challenges in securing business financing. However, several financial institutions have developed tailored loan programs to support women-owned businesses. This article explores some of the top banks and financial institutions offering business loans designed to empower women entrepreneurs.
1. Bank of Baroda: Baroda Mahila Swavalamban Scheme
In December 2024, Bank of Baroda introduced the Baroda Mahila Swavalamban scheme, a loan program specifically for women entrepreneurs. This scheme offers loans ranging from ₹20 lakh to ₹7.5 crore, with interest rates starting at 9.15%. Notably, it provides collateral-free options for loans up to ₹5 crore through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) guarantee, a government initiative to facilitate easy access to collateral-free loans.
2. State Bank of India (SBI): Stree Shakti Package
SBI’s Stree Shakti Package is designed to support women entrepreneurs by offering a concession of 0.05% on interest rates for loans exceeding ₹2 lakh. To be eligible, women must own at least 50% of the business and participate in entrepreneurship development programs organized by state agencies. This initiative aims to encourage more women to venture into business by providing financial incentives.
3. Punjab National Bank (PNB): Mahila Udyam Nidhi Scheme
PNB’s Mahila Udyam Nidhi Scheme provides financial assistance to women entrepreneurs for setting up new projects in small-scale sectors. The scheme offers loans up to ₹10 lakh with flexible repayment terms extending up to 10 years, including a moratorium period. This program is tailored to support women in establishing and expanding their businesses.
4. HDFC Bank: Women Entrepreneur Loan
HDFC Bank offers the Women Entrepreneur Loan, providing financial support with competitive interest rates and flexible repayment options. The bank also offers personalized assistance to help women entrepreneurs choose the right financial solutions for their business needs. This initiative is part of HDFC’s commitment to fostering women’s participation in the business sector.
5. Small Industries Development Bank of India (SIDBI): Mahila Udyam Nidhi
SIDBI’s Mahila Udyam Nidhi scheme aims to assist women entrepreneurs in establishing new industrial ventures in the small-scale sector. The scheme offers soft loans for equity participation and provides financial assistance for meeting term loan requirements. This program is designed to promote and support women’s entrepreneurship across various industries.
6. ICICI Bank: Self Help Group-Bank Linkage Program
ICICI Bank’s Self Help Group-Bank Linkage Program facilitates credit to women entrepreneurs through self-help groups (SHGs). The program provides financial assistance for income-generating activities, encouraging collective entrepreneurship among women. This approach not only provides financial support but also fosters a sense of community and mutual assistance among women entrepreneurs.
7. Canara Bank: Udyogini Scheme
Canara Bank’s Udyogini Scheme offers financial assistance to women entrepreneurs in rural and semi-urban areas. The scheme provides loans up to ₹1 lakh for agricultural and allied activities, retail trade, and small business enterprises. This initiative aims to empower women by providing them with the necessary financial resources to start and sustain their businesses.
8. Dena Bank: Dena Shakti Scheme
Dena Bank’s Dena Shakti Scheme offers loans to women entrepreneurs at a concessional interest rate of 0.25% in sectors like agriculture, manufacturing, micro-credit, retail stores, and small enterprises. The scheme aims to encourage women’s participation in various economic activities by providing affordable credit.
9. Central Bank of India: Cent Kalyani Scheme
The Cent Kalyani Scheme by the Central Bank of India provides financial support to women entrepreneurs in the cottage, micro, small, and medium enterprises (MSME) sectors. The scheme offers loans up to ₹1 crore without collateral security and at competitive interest rates. This program is designed to facilitate easy access to credit for women entrepreneurs, enabling them to grow their businesses.
10. Union Bank of India: Union Nari Shakti Scheme
Union Bank of India’s Union Nari Shakti Scheme provides financial assistance to women entrepreneurs for setting up new enterprises or expanding existing businesses. The scheme offers loans with concessional interest rates and flexible repayment options, aiming to empower women in the business sector.
Conclusion
Access to tailored financial products is crucial for empowering women entrepreneurs and fostering inclusive economic growth. The aforementioned banks and financial institutions offer various schemes designed to support women in establishing and expanding their businesses. By leveraging these opportunities, women entrepreneurs can overcome financial barriers and contribute significantly to the economy.
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