Women entrepreneurs have played a significant role in the MSME sector in the last few decades. Women entrepreneurs are good managers. But the major problem that they face is a lack of enough funds.
To encourage and promote women entrepreneurs, the Government of India launched a Mudra loan for women. The sole purpose of the Mudra loan for women is to help ambitious and capable women to start their own businesses.
Women entrepreneurs can avail of this scheme for their businesses. But, there are certain basic eligibility criteria that you must meet to avail of the loan. Read on to know the things to consider before applying for a Mudra loan for women!
1 Applicant profile
Women entrepreneurs engaged in trading and manufacturing businesses can apply for this loan. Female entrepreneurs aiming to start a non-farm business can make an application. Following business aspirants can apply for this loan scheme:
- Business vendors and shopkeepers.
- Entrepreneurs in the food production sector.
- Individuals engaged in the textile sector.
- Entrepreneurs engaged in dairy farming, poultry, livestock, fishing and allied activities.
- Women involved in income-generating services like salons, dry-cleaning shops, tailoring shops, and more.
The minimum age of an applicant for a PM Mudra Loan must be 18 years. The maximum age limit for applying is 65 years.
3 The amount of loan
The Government of India has designed Mudra loans for small and medium-size business enterprises. Aspiring female entrepreneurs can avail up to Rs.10 lakhs under the Mudra Loan scheme.
An applicant has to provide the following documents for making a loan application under the PM Mudra Loan scheme:
- A duly filled application form.
- Identity proof such as Aadhar card, driving license, Passport, Voter ID card.
- Address proof such as Aadhar Card, Passport, utility bills or bank statement.
- Proof of qualification.
- Proof of business establishment or continuity.
- 2 Passport size photographs.
- Bank statement for the last 6 months.
5 The tenor of loan and repayment
The loan amount under this initiative is available for a tenor of 3 to 5 years. A borrower can repay the loan through EMIs. Women borrowers can also avail the loan at discounted interest rates and save on repayments.
6 The purpose of the loan
The sole purpose of Mudra Loan for Women is to help them start their own business. One can use the loan amount availed under this scheme can only for business purposes such as:
- To set up an establishment.
- To buy fixed assets such as furniture, tools and machinery.
- To expand the business enterprise.
- To meet working capital needs
The eligibility criteria are dead simple and easy to fulfil. But there are certain exceptions to this scheme. The following individuals are not eligible for this scheme:
- Women entrepreneurs availing government-sanctioned schemes.
- Women entrepreneurs partaking in retail trade.
This scheme is beneficial for women entrepreneurs from all point of views. Borrowers do not need any collateral or security to make an application for this loan.
The entire risk is being borne by the government. Mudra loan for Women can help in brightening the future of women individuals with a vision.
It is easy to avail of this scheme, and women should look forward to it while planning a start-up. In case you need a higher value loan, you can also choose business loans from leading financial institutions at affordable rates and simple terms.
Bajaj Finserv presents pre-approved deals on business loans, home loans, personal loans and more. It can simplify the loan processing and make it faster. You can share your basic details like your name and mobile number to unlock your pre-approved loan offers right
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