Subsidies in India for Women Entrepreneurs

Women entrepreneurs are not sufficiently represented among the business community in India. Most women opt for household management after wedding and breadwinning responsibilities are left to the men. In recent days, there has been a shift in this attitude due to urbanization and women empowerment. To boost women owned businesses in India and promote women entrepreneurship, the Government has announced various subsidies in India for Women Entrepreneurs. In this article, we look at some of the popular subsidies in India for women entrepreneurs.

TREAD Subsidy Scheme for Women

Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme for Women is a subsidy in India provided by the Ministry of Micro, Small & Medium Enterprises. Government provides subsidy of up to 30% of the total project cost as appraised by lending institutions which would finance the remaining 70% as loan Assistance to applicant women. Women eligible under this scheme are who have no easy access to credit from banks due to their cumbersome procedures and the inability of poor & usually illiterate/semi-literate women to provide adequate security demanded by banks in the form of collaterals. Further, the request for subsidy under this scheme must be made by a NGO for a number of individual or group(s) women.

Bharatiya Mahila Bank

Bharatiya Mahila Bank is a one of a kind Bank in India formed with a vision of economic empowerment for women. Bharatiya Mahila Bank commenced operations in 2013 and currently has 45 branches across India. Bharatiya Mahila Bank focuses on women entrepreneurship with special attention to economically neglected, deprived, discriminated, underbanked, unbanked, rural and urban women to ensure inclusive and sustainable growth. Some of the popular loans provided by Bharatiya Mahila Bank for Women Entrepreneurs are:

BMB Shringaar – Loan For Beauty Parlour /Saloon/Spa: Collateral free loan of upto 1 crore is provided under theCGTMSE Scheme for setting up of a beauty parlour or saloon or spa. The loan is provided for a term of upto 7 years with an interest rate of 12.25% (Base Rate + 2.00%).

BMB Annapurna – Loan For Food Business: Collateral free loan of upto 1 crore is provided under the CGTMSE Scheme for setting up of a food business. The loan is provided for a term of upto 3 years with an interest rate of 11.75% (Base Rate + 1.50%).

BMB Parvarish – Loan For Day Care Centre: Collateral free loan of upto 1 crore is provided under the CGTMSE Scheme for setting up of child day care center. The loan is provided for a term of upto 5 years with an interest rate of 12.25% (Base Rate + 2.00%).

Mahila Coir Yojana

The Mahila Coir Yojana Subsidy Scheme was promoted to provide self employment to rural women artisans in regions producing coir fibre. Conversion of coir fibre into yarn on motorized ratts in rural households provides scope for large scale employment, improvement in productivity and quality, better working conditions and higher income. The scheme envisages distribution of motorized ratts/ motorized traditional ratts for spinning coir yarn to women artisans. As per the scheme, the Coir Board will provide 75% of the cost of the motorized ratt as one time subsidy provided the other 25% is raised by the beneficiary through voluntary organizations/ financial institutions/ own sources. Not more than one artisan per household would be eligible to receive assistance under the scheme.

Mahila Udayam Nidhi

Mahila Udayam Nidhi is a subsidy scheme for women entrepreneurs from Puducherry Government. Women entrepreneurs setting up a new SSI unit in the service sector in Puducherry State can avail this scheme. As per the scheme, for a project cost of Rs.10 lakhs, seed capital of 25% is provided as a subsidy and the balance 75% would be funded as a Term Loan (65%) and Promoter Contribution (10%). The term loan would have a repayment period of 6 to 8 years including moratorium of 1 to 2 years.