The article covers what is Mudra Loan for Women, its eligibility, interesting facts and how to apply for the Mudra Loan for Women in India.
The under-representation of Indian women in the world of entrepreneurship is indeed alarming, and a matter of concern. Here are a few facts which should you should be aware of:
- Only 14% of Indian entrepreneurs are women
- Out of 5 crore entrepreneurs, only 80 lakh are women
- 79% of all women-led businesses are self-funded, mainly because they are not able to secure any funding for business expansion
- Women contribute only 17% to India’s GDP, whereas 37% is the global average
Govt wants to change this, and encourage more and more women to participate in India’s growth story. To help and enable women to start new businesses, and to expand their current business operations, the Government of India introduced Mudra Loan for Women in 2015.
Mudra Loan for Women or Mudra Yojana Scheme for Women is a unique Govt initiative under the Pradhan Mantri Mudra Yojana scheme, which is a massive fund of funds created to empower entrepreneurs in India.
Learn more about – Pradhan Mantri Mudra Yojana – Features, Benefits and Documents Required
In this article, we will share what is Mudra Loan for Women and some interesting facts about the Mudra Yojana Scheme for Women in India. Besides, we will also share the eligibility and how to apply for the Mudra loan for women.
To start with, what is Mudra loan for women?
Mudra Loan for Women: What It Is?
Under the Pradhan Mantri Mudra Yojana scheme, Govt has introduced a unique loan scheme for women entrepreneurs, called Mudra Yojana scheme for women.
In this scheme, which is also called Mahila Udhyami Yojana, loans up to Rs 10 lakh are provided to women entrepreneurs, without any collateral, and with low interest with flexible repayment tenure.
The loans under the Mudra scheme (for both men and women) are provided by various banks, financial institutions and micro-finance institutions, which get the funding from a special pubic sector bank called Micro Units Development and Refinance Agency Bank.
Govt has informed all banks, and NBFC, MFIs to reduce interest by 25 basis points while allocating Mudra loans for women. Hence, women entrepreneurs can pay less interest and avail of other benefits under this scheme.
Learn more about – Mahila Udyam Nidhi Scheme Gives A Big Boost To Women Entrepreneurs In India
Some Interesting Facts About Mudra Yojana Scheme for Women
- Despite only 14% of entrepreneurs being women, maximum loans under the Mudra scheme have been allocated to women entrepreneurs. Between 2015 to 2019, 70% of all loans under the Mudra scheme were given to women entrepreneurs. This shows the massive change which Mudra loan for women has brought in.
- Fifteen crore loans to women, amounting to Rs 4.78 lakh crore have been distributed to women entrepreneurs as of 2019, under the Mudra scheme.
- Tamil Nadu women receive the most number of loans under Mudra Yojana for women and also received the highest loan amount (Rs 59,000 crore)
- West Bengal, Karnataka and Bihar are the other top states where women received maximum loans under Mudra loan for ladies.
- Agriculture, services and trading are the three biggest sectors where women availed Mudra loans.
*Total Mudra loans disbursed since 2015, as per reports.
Mudra Loan for Women Eligibility
Under Mudra loan for women, these are the eligibility criteria:
- Women entrepreneurs who are heading and managing any manufacturing or production business are eligible to get loans up to Rs 10 lakh, without any collateral. Examples being artisans, weavers, craftsmen and more
- Other small and micro-scale businesses which qualify for Mudra loans for women are phone repairing, auto-repairing, tailoring, photocopying, servicing centers for electronics appliances, spa, beauty parlor services.
- Loans under Mudra Yojana Scheme for women can be used to set up a new business, expand an existing business or modernize existing business with the latest technology and tools.
- The age limit for women who can avail of loans under the Mudra scheme is 65 years. The minimum age requirement is 18 years
Preferences Given for Loan Approval Under Mudra Scheme for Women
- Group or Cluster of artisans, instead of individual artisans
- Self-help groups formed by artisans and weavers, craftsmen
- Artisans who are registered under Development Commission (Handicrafts)
- Women entrepreneurs who have trained themselves at R-SETIS or any other prescribed institution.
- Women or men recipients of any other Govt schemes are not eligible for Mudra loan
- Women entrepreneurs who are engaged in retail trade do not qualify for Mudra loan
Other Terms and Conditions for Mudra Yojana Scheme for Women
- There is no requirement of collateral, for availing Mudra loan for women
- United Bank of India provides the loan for women under Mudra scheme
- Loans can be only allocated for non-corporate, non-farming and non-agriculture based business, which is headed and run by women entrepreneurs
- Total tenure for loan repayment for women is a maximum of 5 years, and a minimum of 3 years
- The applicant shouldn’t have defaulted on any previous loan
- There should be no criminal record against the applicant
- In the case of salaried employees, the last six months salary slip is required
- In the case of existing entrepreneurs, ITR filings are required
- Women who own more than 50% stake in any business are also eligible for Mudra loan
- A written business plan is required to be submitted, for availing business loan for women, under the Mudra scheme
- For identity proof, Aadhaar card, voter card, PAN card or driving license is valid
- For address proof, telephone bill, electricity bill, water/gas bill can be used
- Proof of business is required which can be shown via a business registration certificate
Do you wish to know more about the Mudra loan for women and how to apply for it? Do you want to know all other types of business loans for women in India, besides the Mudra loan?
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