Loans for Female Business Owners

"Read our article on the loans for female business owners and Check out all the schemes that help women get their loans approved."

Loans for Female Business Owners

5 mins read

Published: 27 February 2024

Updated: 4 March 2024

The Indian economy is undergoing a significant transformation as an increasing number of people leave their attractive corporate jobs to pursue entrepreneurial initiatives. The startup industry, which is rife with possibilities and ideas, provides a platform for showcasing one's business savvy and creative qualities in addition to being an extremely profitable earning prospect. It is encouraging to observe the significant increase in the percentage of women assuming entrepreneurial roles, as small enterprises thrive and strive to effect helpful social change. Women have the opportunity to gradually make their way into the mainstream market through small businesses like home-based food catering, beauty parlours, etc. Financial institutions and the government readily offer business loans to support women in their various entrepreneurial initiatives.

Why you Should Apply for Business Loans for Women?

The biggest benefits of Business Loans Online are listed below:

  • No Collateral Needed: You can apply for a business loan without giving the bank any kind of security. A business loan is one where the bank can approve it without requiring any security. Financing business owners is made easier for women by the benefits of no collateral.

  • Quick Approval: Getting a loan for women to start a business can be really beneficial. It has the added benefit of having a fast approval process. The ability to approve company loans online has been made possible by advancements in technology. after the borrower completes filling out the application.

  • Documentation: With the least amount of paperwork required, the borrower can obtain a speedy business loan online or offline. To obtain the loan, the borrower must produce documentation of their address, business, identity, and income.

  • Establish Credit History: A business loan helps you establish credit. Your credit score will also increase if you repay the loan in full and on schedule.

  • Reliable Options for Borrowing and Repayment: A lot of loan providers for business customers with flexible borrowing and repayment options. You can apply for an Indian business loan and pay back the loan balance in customizable monthly installments.

  • Interest Rates: The business loan has an interest rate of 13% P.A.* plus other costs. Applying for a business loan allows you to achieve the lowest interest rate possible on your loan approval.

Different Loan Schemes for Women Business Owners

1. Business Loan Offered by the Government of India

The Pradhan Mantri Mudra Yojana (PMMY): In this program, the government offers to women business owners. The government initiated this scheme in 2015. This program enables women who wish to launch their own businesses or grow their current loans up to Rs. 10 lakh. Three categories—Tarun, Kishor, and Shishu—are used to offer the loan amount. The following summarises the key components of the Mudra Yojana loan program that banks and NBFCs are offering:

Women Entrepreneurs' Affordable Interest Rates

  • Loans for Business Without Collateral: Neither banks nor NBFCs require any security or collateral.

  • Term loan/overdraft; three loan categories: Tarun, Kishor, and Shishu

  • Loan Amount: Up to Rs. 10 lakh in maximum, with no minimum.

  • Maximum Repayment Period: Five Years

  • Fee for processing: In some cases, it’s totally free of cost and in others, it’s 0% to 0.50% of the approved loan amount.

2. Loans for Indian Women who live in both Urban and Rural areas

Stand-Up India:- The government launched the Stand Up India loan program to provide financial facilities for beginning a fresh business for a loan amount ranging from Rs. 10 lakh to Rs. 1 crore. Let’s discuss the feature below:-

  • Interest Rate: Rates can be really low for women business owners.
  • Payback Tenure: Up to seven years, with an eighteen-month tenure.
  • Working capital limits exceeding Rs. 10 lakh will be approved through cash credit limits.
  • It is anticipated that the loan specifications will pay for 85% of the project's total cost. It will not, however, be applicable if the borrower contributes more than 15% of the project cost through other programmes in addition to convergence support.
  • Presented: necessary to serve as the Credit Guarantee Scheme's primary security or guarantee for Stand-up India Loans.

Udyogini Yojana:- This scheme is initiated by the government to support women. The women business owners who want to expand their business or start a new one can benefit from this one. This scheme comes with a lot of perks and to know more about this scheme do visit My Mudra and apply for business loans for female business owners.

3. Business Loan Offered by other Financial Institutions

1. Loan by State Bank of India

The State Bank of India (SBI) provides female entrepreneurs with a number of lending programmes. These include the Stree Shakti Package, which offers loans to women who already own small companies or wish to start one, and the Annapurna Scheme, which gives loans to women to create food catering businesses. SBI also offers help to businesswomen who want to buy any commercial property.

2. Loan by Axis Bank

Axis Bank offers loans through its 'Shakti' program to women business owners. Women who wish to start one can apply for loans up to Rs. 25 lakh through this scheme. For female entrepreneurs looking to buy equipment or commercial real estate, Axis Bank also provides financing.

3. Loan by ICICI Bank

ICICI Bank offers “The Mahila Udhyam Nidhi Scheme” which is designed to give financial support to women business owners. Women can apply for loans under this initiative up to Rs. 10 lakh to launch or grow their companies. Additionally, it also offers loans to women who want to purchase machinery or equipment for their respective businesses.

These financial organizations provide a variety of offering plans and initiatives to assist Indian women business owners.


These loans assist female business owners in expanding their respective businesses. Business loans are very beneficial in terms of low-interest rates and repayment options. Women can apply for business loans from a number of different lenders. But not every one of these lenders is made equally. Before selecting a lender, it's critical to conduct research because some can have unfavorable terms or hidden costs. Fortunately, you have My Mudra, available to assist you in obtaining the perfect loan for your business. So don’t look any further and apply now on My Mudra.

Also read: How can an Instant Business Loan Benefit your Business?

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