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26-02-2023

Mudra Yojana Scheme for Women: Empowering Women Entrepreneurs with Business Loans

Introduction

The Indian government has started a number of programs to help women entrepreneurs grow and do well. The Mudra Yojana Scheme is one such initiative that provides business loans to women entrepreneurs who wish to start or expand their businesses. This scheme is designed to empower women and promote gender equality and economic growth. Women entrepreneurs can access various financial products under this scheme. This comprehensive guide will provide all the necessary information for women entrepreneurs who wish to apply for a loan under the Mudra Yojana Scheme.

Mudra Yojana Scheme for Women

The Mudra Yojana Scheme for Women, also known as the Mahila Udhyami Yojana, is a unique loan scheme launched by the Indian Government for women entrepreneurs under the Pradhan Mantri Mudra Yojana. Women entrepreneurs can obtain business loans up to Rs. 10 lacks without the need for collateral under this scheme. The loans have low-interest rates and flexible repayment options, making it easier for women to start or expand their businesses.

The Mudra Scheme is not limited to women and is available for both men and women entrepreneurs. Various banks, financial institutions, and microfinance institutions provide loans under this scheme. These organizations receive funding from a special public sector bank called Micro Units Development and Refinance Agency Bank.

The government has instructed banks, NBFCs, and MFIs to reduce interest rates by 25 basis points while allocating Mudra loans for women. This means that women entrepreneurs can now pay less interest and enjoy other benefits offered by the scheme.

This loan scheme has the potential to promote entrepreneurship among women and help them become financially independent. With the right support and resources, women entrepreneurs can make a significant contribution to the growth of the Indian economy.

Eligibility

Women entrepreneurs who are heading and managing manufacturing or production businesses can get loans up to Rs. 10 lacks in their bank account under the Mudra Yojana Scheme for Women. This includes businesses such as artisans, weavers, and more. Other small and micro-scale businesses such as phone repairing, auto-repairing, tailoring, photocopying, and servicing centers for electronics appliances, spas, and beauty parlor services also qualify for Mudra loans for women.

The age limit for women who can avail of loans under the Mudra Scheme is 65 years, and the minimum age requirement is 18 years. With this scheme, women entrepreneurs can receive the necessary support and funding to achieve their business goals and make a significant contribution to the growth of the Indian economy.

Despite the fact that only 14% of entrepreneurs in India are women, Mudra loans have made a significant impact in empowering women entrepreneurs. In fact, between 2015 and 2019, a whopping 70% of all loans under the Mudra Scheme were allocated to women entrepreneurs. This is a massive change that has been brought about by the Mudra loan for women.

As of 2019, 15 crore loans worth Rs. 4.78 lakh crore have been distributed to women entrepreneurs under the Mudra Scheme. These loans have played a vital role in providing women entrepreneurs with the necessary financial support to start and grow their businesses.

Among all the states, Tamil Nadu has the highest number of women who have received Mudra loans for women. In addition, Tamil Nadu also received the highest loan amount of Rs. 59,000 crores. Other top states where women have received maximum loans under Mudra Yojana for Women are West Bengal, Karnataka, and Bihar.

Agriculture, services, and trading are the three biggest sectors where a woman entrepreneur has availed of Mudra loans. This indicates that women entrepreneurs are not just confined to one particular sector but are making a significant contribution to the growth of the Indian economy.

To apply for a mudra loan for women, you need to visit your nearest bank branch that is offering mudra loans. You can check the list of eligible banks and financial institutions on the official website of mudra yojana.

Before visiting the bank, make sure you have all the necessary documents with you, such as identity proof, address proof, business plan, and financial statements. You will also need to submit a mudra loan application form, which is available at the bank branch.

Once you have submitted the application form and all the required documents, the bank will evaluate your application and assess your creditworthiness. Based on your eligibility and credit score, the bank will sanction your loan and disburse the amount to your bank account.

Conclusion

The mudra yojana scheme for women is an excellent initiative by the Indian government to promote entrepreneurship among women and support their business aspirations. The scheme provides financial assistance to women entrepreneurs who want to start or expand their businesses, with loans up to Rs 10 lakh without the need for collateral.

With the right support and resources, women entrepreneurs can make a significant contribution to the growth of the Indian economy. Through mudra loans, women entrepreneurs can access the necessary funding to achieve their business goals and become financially independent.

If you are a woman looking to start or expand your business, the mudra yojana scheme can be an excellent option to explore. However, before applying for a mudra loan, make sure you understand the eligibility criteria, documentation requirements, and application process.

With the comprehensive guide provided in this article, you should have a better understanding of the mudra yojana scheme for women and the benefits it offers to women entrepreneurs in India.

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