Top 9 MSME Schemes for Women Entrepreneurs in India: Unlocking Self-Sufficiency And Success
In the contemporary economic landscape, achieving gender equality is unavoidably crucial. Women from diverse social backgrounds now find a warm embrace in the MSME sector, which was traditionally dominated by the male populace.
In India, the implementation of numerous government incentives for women entrepreneurs has spurred increased participation. This includes initiatives at both the state and central levels, signaling a positive shift towards inclusivity and empowerment.
Are you too a women entrepreneur in India, struggling in the battle against misogyny and social biases and prejudices, trying to achieve a name of your own? Then, delve deeper into the length of this blog to discover the Top 9 MSME Schemes That Encourage Women Entrepreneurs in India.
The Landscape of Women Entrepreneurship in India
Before delving into the schemes, let's take a moment to understand the current scenario of women entrepreneurship in India. Despite the progressive strides, women entrepreneurs often face unique challenges. From societal expectations to limited access to resources, the journey for women in business has its hurdles. The perpetual expectation of women to be homemakers has shackled their capabilities to strive in both worlds.
Check Out: Breaking Barriers: How MSME Schemes are Transforming Women's Entrepreneurship
Significance of MSME Schemes for Women Entrepreneurs
The MSME sector in India plays a crucial role in the economic development of the country. For women entrepreneurs, these schemes act as a catalyst, providing them with the necessary tools to overcome obstacles. One of the key aspects is access to finance, which has historically been a stumbling block for many aspiring women entrepreneurs.
If you're a woman with a passion for business, this article provides insights on how government initiatives can assist in establishing and growing your enterprise.
Top 9 MSME Schemes for Women Entrepreneurs in India
- Mudra Yojana Scheme
This is an expansive government programme designed for women who wish to launch small-scale businesses like beauty salons, tutoring centers, tailoring shops, etc. The programme also meets the needs of a group of women who want to work together to launch a business.
organizations. Under this initiative, loans up to Rs 50 lakh and starting at Rs 50,000 are approved. Collateral and guarantors are needed for loans larger than Rs 10 lakhs.
This initiative has three plans: the Shishu plan, which offers loans up to Rs 50,000 for start-ups; the Kishor plan, which offers loans between Rs 50,000 and Rs 5 lakh for established firms; and the Tarun plan, which offers loans between Rs 5 lakh and Rs 10 lakh for business expansion.
Also Read: Is Mudra Loan Right for You? Eligibility Criteria Demystified
- TREAD (Trade-Related Entrepreneurship Assistance and Development) Scheme
A certain level of experience is necessary to manage any business successfully, and this expertise can assist in boosting the firm in a way that makes it more competitive in the market.
To accomplish this vital step, PMEGPs launched the TREAD programme, which aims to empower women entrepreneurs in India by giving projects credit, offering specialized training and coaching, and sharing expertise for their businesses.
A government grant of up to 30% of the total project cost as determined by financial institutions is provided by the plan. The remaining 70% would be funded by these organizations.
- Mahila Udyam Nidhi Scheme
This programme, which was initially designed to provide small-scale business models with financial support up to Rs 10 lakhs, intends to support women entrepreneurs in India starting new enterprises as well as in modernizing and upgrading already-existing ones. The loans have ten years to pay them back, with interest rates that fluctuate based on market conditions. This includes a five-year grace period.
- Annapurna Scheme
Named aptly, the Annapurna Scheme is tailored for aspiring women chefs. Transform your culinary passion into entrepreneurship with loans up to Rs 50,000. This facilitates the purchase of kitchen essentials like utensils and water filters.
Collateral, a guarantor, and a 3-year repayment period are requisite. Enjoy a one-month grace period before commencing repayment, and interest rates align with market trends, with assets securing the loan.
- Shree Shakti Package for Women Entrepreneurs
Women must be enrolled in the Entrepreneurship Development Programme (EDP) at their relevant state agency to be eligible for loans under this plan. Additionally, they would have to own more than 50% of the stock in a small company. A 0.05 percent interest reduction is available under the plan for loans exceeding Rs 2 lakh.
- Bharatiya Mahila Business Bank Loan
Bharatiya Mahila Business Bank Loan is dedicated to empowering underprivileged women, offering loans up to Rs 20 crores repayable over seven years. Under the Credit Guarantee Fund Trust, loans up to Rs 1 crore require no collateral.
The interest rate, starting at 10.25%, increases to 12.25% with an additional 2%. Notably, success stories, like Nirmala Devi's entrepreneurial journey, highlight the bank's transformative impact, providing financial independence to women.
- Dena Shakti Scheme
Under this programme, women entrepreneurs in India operating retail outlets, manufacturing, microcredit, agriculture, or related businesses are eligible to apply for loans. The microcredit category offers loans up to Rs 50,000 with an interest rate rebate of 0.25%. Education, housing, and retail commerce are the categories under which loans up to Rs 20 lakhs are approved.
- Cent Kalyani Scheme
Women entrepreneurs in India who are overseeing MSMEs, agricultural activities, or retail trading can access loans under this scheme. Loans up to Rs 1 crore are approved without the need for collateral or guarantors, with interest rates determined by the market. A notable benefit is the absence of processing fees for businesswomen applying for loans through this scheme.
- Udyogini Scheme
Udyogini Scheme caters to women entrepreneurs aged 18-45 in agriculture, retail, and small businesses with a family income below Rs 45,000. Eligible individuals can access up to Rs 1 Lakh.
The scheme offers low-interest rates on business loans, and for widowed, destitute, or differently-abled women, there's no income limit, with a 30% subsidy (up to Rs 10,000). The same applies to SC/ST category women, while those in the general category receive a 20% subsidy (up to Rs 7500).
Conclusion
The future holds immense potential for women entrepreneurs in India. With the government's sustained focus on the MSME sector and initiatives to promote entrepreneurship, the landscape is evolving. The government's role in creating an environment conducive to the growth of women-led businesses is crucial for long-term success.
There is no force more powerful than a woman determined to rise!
So, it is high time that women embark on their path to attain self-sufficiency and success by being the breadwinner of the house, which has been in fact, restricted to the male heads of the family. In the journey towards gender equality, these MSME schemes are not just financial tools; they are instruments of empowerment, providing wings to the dreams of countless women across the nation.
Also, if you want to register for any of the above-mentioned MSME schemes then do visit our site. Wait no longer as Acehours is all set to simplify your business journey and make it a smooth and hassle-free experience.
