As women continue to break barriers and excel in entrepreneurship, access to tailored financial solutions is pivotal for fostering their success. In 2024, the landscape of small business loans offers many opportunities designed to support women-owned businesses. These loans cater to diverse needs and aspirations, from secured to unsecured options. This blog explores the five best small business loans for women in 2024, featuring a blend of affordability, flexibility, and accessibility.
Stand-Up India Scheme
The Stand-Up India Scheme, launched in April 2016 by the Government of India, promotes entrepreneurship among women, Scheduled Castes (SCs), and Scheduled Tribes (STs). It facilitates loans ranging from ₹10 lakh to ₹1 crore for setting up new ventures in manufacturing, services, or trading sectors. The scheme offers collateral-free loans, handholding support, and competitive interest rates to encourage economic empowerment and job creation among marginalized communities.
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Pradhan Mantri Mudra Yojana(PMMY)
The Honorable Prime Minister inaugurated the PMMY scheme on April 8, 2015. It provides loans up to 10 lakh to non-farm small/micro and non-corporate enterprises. These loans come under MUDRA loans within PMMY and are disbursed by Commercial Banks, Small Finance Banks, Regional Rural Banks (RRBs), Micro Finance Institutions (MFIs), and Non-Banking Financial Companies (NBFCs).
Also Read: Apply For Secured Business Loan
PSB Loan in 59 minutes
The ‘PSB Loan in 59 Minutes’ is an online platform that allows self-employed professionals and Micro, Small, and Medium Enterprises (MSMEs) to apply for business loans and Mudra loans. This scheme, initiated by SIDBI, offers loans starting from an interest rate of 8.50% per annum.
Check-out more: Business Loan Eligibility Calculator
PNB Mahila Udyami
The loan scheme offers two types: Term Loans and Working Capital Loans. For new and existing units, businesses can access term loans of up to Rs. 10 lakh with a 3-5-year repayment tenure. Additionally, an overdraft facility is available with a tenure of 3 years. The moratorium period for repayment ranges from 3-6 months, depending on the type of activity and income generation. Margin requirements vary: up to Rs. 2 lakh requires no margin, Rs. 2 lakh to Rs. 5 lakh requires a 20% margin, and Rs. 5 lakh to Rs. 10 lakh requires a 25% margin.
Cent Kalyani By Central Bank of India
Cent Kalyani is a specialized loan scheme offered by the Central Bank of India. It empowers women entrepreneurs and promotes their participation in business ventures. The scheme aims to provide financial assistance and support to women who aspire to start or expand their existing businesses. Let’s know its features.
The interest rate for the Cent Kalyani scheme ranges from 8.70% p.a. to 8.95% p.a. For loans up to Rs. 10 lakh, the interest rate is 8.70% p.a., while for loans above Rs. 10 lakh and up to Rs. 100 lakh, the interest rate is 8.95% p.a. The purpose of the loan is to fulfil day-to-day requirements such as purchasing plant & machinery/equipment, as well as meeting working capital expenditure. The nature of the loan includes term loan fund-based working capital facility (overdraft/cash credit) and non-fund-based working capital (letter of credit/letter of guarantee). The loan amount can be up to Rs. 100 lakhs, and there is no processing fee. Additionally, CGTMSE coverage is available for this scheme.
Final Word
In 2024, women entrepreneurs can also access a secured business loan or an unsecured business loan according to their unique needs and aspirations. Using a business loan eligibility calculator, women can fuel their entrepreneurial endeavours, drive business growth, and pave the way for a more inclusive and prosperous future.
