Every businessman at some point in time needs financing for a business. This could when starting up or at scale. If you are a female entrepreneur and in need of funds, check out a few government programs that can help.
Stand Up India
It is a working capital loan to meet all kinds of credit requirements. The target group for this loan is made up of women entrepreneurs and listed castes and tribes.
The minimum and maximum loan offered under the program is ₹10 lakh and ₹1 crore, respectively. Although the loan does not require collateral, the borrower must have a guarantor. The maximum repayment period is seven years.
Union Nari Shakti
The loan is available from Union Bank of India for women who profit from micro, small and medium enterprises. The female borrower must hold at least 51% of the capital of the company.
Women borrowers can use the program to buy, build or renovate a factory, office store or warehouse. They can also take the opportunity to buy a plan, machines and other equipment.
The minimum and maximum loan is ₹2 lakh and ₹2 crore, respectively. The repayment period can be up to 84 months. The bank could ask for guarantees.
There are specific conditions to qualify for a loan under this program. The borrower must be between 25 and 65 years old and the family income must be less than ₹1.5 lakh per year. It is aimed at women in rural and underdeveloped areas. The borrower can get up to ₹3 lakh as part of his small business program.
IDFC FIRST Bank Sakhi Shakti
The bank offers various credit and savings solutions to meet the needs of rural households. Women can apply for a Sakhi Shakti Livelihood Promotion Loan with any basic ID such as Aadhaar. Once on board, they will have to undergo group training to educate them on all aspects and mechanisms of the loan and its conditions.
(Do you have any questions about personal finance? Send them to firstname.lastname@example.org and have them answered by industry experts)
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