India's small and medium-sized enterprises have seen amazing growth. The MSME sector accounts for more than 45% of our industrial production and generates 40% of our GDP. Part of this success story was written by our female entrepreneurs in the country. Due to a series of social prejudices, women entrepreneurs find it difficult to raise funds for their businesses; however, recent changes in small business loans for women have made it easier for women entrepreneurs to obtain corporate loans.

Small business loans for women-These loans are mainly provided to existing businesses, although some lenders also provide SME loan to start-up business women. 

Eligibility: Reliable credit is essential, and the lender uses it to determine the applicant's credit stability. Personal and business documents are also required. 

• Affordable interest rates 
• Provided secured and unsecured financing 
• Ideal for short-term financing

Commercial loans for women: These are ideal for medium-sized companies. You can avail of loans up to 5 million rupees with repayment up to 35 years. Unlike small and medium-sized enterprises, it does not require detailed documents, so it can be used as an instant loan for existing businesses. 

Eligibility: It is mainly provided to companies that are profitable for at least one year, and as evidence, the applicant must provide the lender with an account statement for at least one year. 

• You can get loan benefits up to Rs. 5 million or more 
• Provide online application and prepaid services 
• Return period 35 years 
• Minimum documents

Securities mortgage loans- It is used to start small or private businesses. Loans can be used to invest in stock markets, mutual funds, and life insurance, etc. These short-term loans are valid for 45 years. 

Eligibility: Proof of ownership of securities should be used as collateral. The document is very detailed, and unlike online applications, you need to visit the bank branch. 

• Low interest and minimum eligibility guarantee loans. 
• Flexible return options

The Indian government is also playing a very active role in ensuring the acceleration of these small businesses run by female entrepreneurs. One of the common small business loans for women is Pradhan Mantri Mudra Yojana. This loan includes three options: Shisha, Kishore, and Tarun, which are suitable for start-up companies and existing companies.

The Shishu loan option provides a loan of 50,000 rupees for female small business owners, while Kishore and Tarun can reach up to 1 million rupees for up to 5 years. These loans have the lowest interest rates and the lowest requirements for obtaining loans, but the processing time is quite long.

1. Women’s Entrepreneurship Program or Mahila Udhyami Yojana 

2. Cent Kalyani from the Central Bank of India 

3. Sri Shakti Package from the National Bank of India 

4. Sringaar and Annapurna from Bhartiya 87 Mahila by Bank Baroda

Small business loans for women not only help women grow their businesses by simplifying their business processes, eliminating cash flow interruptions, and entering new markets, but also solve many of the traditional challenges women entrepreneurs in India face.