Among Government loans for women, Bharatiya Mahila Bank Business Loan stands out for several reasons and this article will cover everything about the business loan for women and its eligibility criteria.
As per Govt data, only 14% of entrepreneurs in India are women: Out of 5 crore entrepreneurs, there are 80 lakh women entrepreneurs, and this is an alarming trend.
Interestingly, 79% of all businesses being run by women are self-funded, and this is a fact that cannot be ignored anymore. This means that on the one hand, there are fewer women entrepreneurs in India, and on the other hand, they are struggling for funds to expand and scale up their businesses.
Understanding this problem, the Govt of India has launched several programs of business loans for women, which are powered with additional benefits and features.
Read more about – Mahila Udyam Nidhi Scheme Gives A Big Boost To Women Entrepreneurs In India
Among Government loans for women, Bharatiya Mahila Bank business loan stands out for several reasons: One of them is that no collateral is required.
This article will share everything about the Bharatiya Mahila Bank business loan and inform its interest rate, eligibility criteria, and tenure. Besides, we will give an overview of the best business loans for women currently available in India and suggest ways to apply for startup business loans for women.
Startup Business Loan for Women by Bharatiya Mahila Bank
On the 96th anniversary of Indira Gandhi, former PM Manmohan Singh had launched the Bharatiya Mahila Bank, which translates to “Indian Woman Bank.”
This way, India became the 3rd country globally to have a bank exclusively for women, being run by women.
In 2017, Bharatiya Mahila Bank merged with the SBI, as part of PM Modi’s banking reforms. However, it still retains the unique characteristics and features to help out women entrepreneurs all across India.
4 Types of Bharatiya Mahila Bank Business Loans
There are four types of Bharatiya Mahila Bank business loans available for women:
1. BMB Shringaar
This is a loan for women who wish to launch or running a beauty parlor or saloon, or spa anywhere in India. Age criteria for this business loan for women in 20-60 years, with repayment tenure up to seven years. No collateral is required, and the loan can be used for shop, buying tools/machines, and more.
2. BMB Annapurna Loan
This is a startup business loan for women who are launching or running a food catering business. The age limit is between 18-60 years, and the tenure to repay the loan is three years. No collateral is required for this loan by Bharatiya Mahila Bank.
3. BMB SME Easy
This type of business loan for women helps those who are into small and medium scale enterprises. Loans up to Rs 20 crore can be availed under this Bharatiya Mahila bank loan for women into SMEs. For a loan amount of more than Rs 1 crore, collateral is required, with loan repayment tenure up to seven years.
4. BMB Parvarish
This is a type of Government loan for women who wish to launch or run daycare centers for children anywhere in India. The age limit for this Bharatiya Mahila Business bank loan is between 21 to 55 years, and there no requirement for any collateral. The loan repayment tenure is five years.
The interest rate for these loans is dynamic and depends on the RBI rules for the same. More than 100 branches of Bharatiya Mahila Banks are across India, where you can get more details. In general, the interest rate can vary between 10.15% per annum to 13.65% per annum.
While Rs 5 crore is the maximum loan for women entrepreneurs in retail and service industries, Rs 1 crore is the ceiling for business loans for women in manufacturing.
Documents Needed for Bharatiya Mahila Bank Business Loan
For salaried women, who wish to avail business loans, the following documents are needed:
- PAN Card or Driving License or Voter ID or Passport for identification purpose
- Utility bills, telephone bills, electricity bills, passport, Aadhaar or Property Tax bill for address proof
- Last three months salary slip or Form 16 from the employer or last six months bank statement for income proof
For self-employed women who wish to avail business loans, the following documents are needed:
- PAN Card or Driving License or Voter ID or Passport for identification purpose
- Business address proof, property tax bill, lease document, sales deed for address proof
- For income proof: profit and loss statement, last six months bank statement, last two years income tax returns, current bank account statements, debt disclaimer, credit card disclaimer (if any)
Who is Eligible for Startup Business Loan for Women by Bharatiya Mahila Bank?
Women entrepreneurs who are:
- Sole Proprietor
- Have a partnership firm
- Owners, Board members of public and private companies
- Members of co-operative societies
- Having experience of a minimum of two years (in case of self-employed), with two years of business continuity
- Age between 21 to 60 years (depending on the type of loans as shared earlier)
- Minimum salary of Rs 25,000 (in case of salaried women)
Other Major Government Loans for Women
Besides the business loans for women by Bharatiya Mahila Bank, several other major Government Loans For Women are targeted and focussed on empowering women. Some of these are:
- Loan Under Annapurna Scheme by State Bank of Mysore
- Stree Shakti Package For Women Entrepreneurs in India by SBI
- Business Loan Under Dena Shakti Scheme by Dena Bank
- Business Loan Under Udyogini Scheme by Punjab and Sind Bank
- Business Loan Under Cent Kalyani Scheme by Central Bank of India
- Women Entrepreneur Loan Under Mahila Udyam Nidhi Scheme by Punjab National Bank
- Loan Under Mudra Yojana Scheme For Women Entrepreneur by Govt of India and Finance Ministry
- Orient Mahila Vikas Yojana Scheme For Women Entrepreneur by Oriental Bank of Commerce
Read more about – What Is Mudra Loan For Women: How To Apply For Mudra Yojana Scheme for Women?
Need more clarity and information on startup business loans for women in India?
MSMEx can help you right away. MSMEx is an MSME advisory platform, wherein you can directly connect and consult with business experts about Govt loans, MSMEs, funding and other niches, and give wings to your dreams right away.
