India’s growing MSME sector is a budding ground for women entrepreneurs. Women-owned businesses have flourished over the past decade, boosting the country’s overall economic growth. However, according to a report published by the Ministry of Statistics and Program Implementation, female entrepreneurs comprise only 13.76% of the total entrepreneurial count. This translates to roughly 8 million as opposed to the 50 million plus male entrepreneurs.
This skewed entrepreneurial landscape can be tied to several reasons, including gender bias, a shortage of credit options for female entrepreneurs, and a lack of supportive infrastructure. Several MSME schemes offer easy business loans for women to simplify access to credit and empower them. The Dena Shakti Scheme is one such scheme that’s empowering Indian women to embark on their entrepreneurial journeys and grow their ventures.
What is the Dena Shakti Scheme?
The Dena Shakti Scheme is designed to empower women entrepreneurs with affordable and easy access to financial assistance. Managed by the Dena Bank, this scheme eliminates business loan complexities to help women entrepreneurs secure funding to grow their business ventures. The primary objective of the scheme is to support women entrepreneurs financially. Under the Dena Shakti Scheme, women entrepreneurs involved in agriculture, retail trade, housing, education, and SME sectors can avail of business loans of up to Rs. 20 Lakhs at concessional rates to raise working capital or expand their operations.
The Dena Shakti Scheme offers business loans for women with relaxed loan terms, nominal interest charges, and sufficient loan amounts. Here’s a quick overview of the Dena Shakti Scheme details:
| Dena Shakti Scheme Overview | |
| Rate of Interest | 0.25% lower than base rates (applicable for female entrepreneurs who hold majority stakes in the business) |
| Maximum Loan Amount for Agriculture | Rs. 20 Lakhs |
| Maximum Loan Amount for Retail, Manufacturing, and Small Enterprises | Rs. 20 Lakhs |
| Maximum Loan Amount for Microcredit | Rs. 50,000 |
| Loan Tenure | Maximum of 7 years |
| Processing Charges | 0.50% of the loan amount |
Also Read: Udyogini Scheme for Women Entrepreneurs
Sectors Covered Under the Dena Shakti Scheme
The Dena Shakti Scheme covers many sectors, empowering women entrepreneurs to carve a niche in different business fields. Women entrepreneurs operating in the following sectors can secure a Dena Shakti business loan for their small businesses:
- Agriculture and Allied Activities
- Retail Trade
- Small Enterprises
- Micro and Small Manufacturing Enterprises
- Micro and Small Service Enterprises like business professionals, self-employed women, etc.
- Housing
- Education
- Micro Credit
Details About Small Business Loan
The maximum loan amount sanctioned under this Scheme varies depending on the sector in question. Women-led enterprises in priority sectors like agriculture can secure business loans of up to Rs. 20 Lakhs. Similarly, for the manufacturing, retail trade, education, and housing, the loan ceiling is set at Rs. 20 Lakhs.
Microfinance is one of the most effective tools to promote entrepreneurship among women. These business loans help alleviate the financial assistance obstacles women entrepreneurs face. The Dena Shakti Scheme also offers business loans for small businesses with its micro-credit loan facility. Women-led small businesses can secure up to Rs. 50,000 to fund their micro-credit requirements.
Eligibility Criteria and Documents Required for the Dena Shakti Scheme
To avail of a Dena Shakti Scheme business loans for women, female entrepreneurs need to meet certain important eligibility parameters. Business loans under the Dena Shakti Scheme are available to women with more than 50% ownership in the business enterprise. Moreover, these loans are also available to self-employed professional women like chartered accountants, architects, and doctors.
To simplify the business loan application process, the Dena Shakti Scheme requires the following basic documents from the applicant:
- Identity proof documents like Aadhaar Card/PAN Card/Driving Licence/Voter’s ID Card
- Address proof documents like Aadhaar Card/Passport/Ration Card/Utility Bills
- Bank account details
- One passport-sized photograph of the applicant
Also Read: UIDAI – Unique Identification Authority of India
Understanding the Impact of the Dena Shakti Scheme on Women Entrepreneurs
The Dena Shakti Scheme aims to create a diversified entrepreneurial landscape, empowering women to grow and expand their business ventures. Here’s how the Dena Shakti Scheme benefits women entrepreneurs:
1. Concessional Interest Rates:
The Dena Shakti Scheme offers financial assistance at a concessional rate to women-led businesses, lowering the average cost of borrowing. Women entrepreneurs can secure business loan at a concession of 0.25% on the prevailing interest rates. This helps women entrepreneurs invest in business growth and development without being burdened with high interest charges.
2. Working Capital-Cum-Term Loan:
Recognising the diverse funding requirements of women entrepreneurs, the Dena Shakti Scheme offers a working capital-cum-term loan. This approach allows women entrepreneurs to have funds to meet their short-term capital requirements for day-to-day business operations and long-term capital for business expansion and growth. This flexible financial assistance helps women manage their working capital and seize opportunities for scaling their businesses without liquidity constraints.
3. Comfortable Repayment Tenure:
The Dena Shakti business loans for women come with a flexible repayment tenure ranging up to 7 years. This prolonged repayment time frame eases the burden on women entrepreneurs, allowing them to plan repayment schedules that align with their cash flow dynamics. Moreover, a longer repayment tenure allows them to pace out EMIs, reducing monthly financial strains and liabilities.
4. Fostering Growth with Microcredit:
The micro credit finance aspect of the scheme helps establish and grow small businesses. Statistics suggest that women entrepreneurs dominate the low capital-intensive micro-business landscape, especially in the rural sector. Microcredit offers targeted financial assistance to small enterprises that are often unable to secure finance from traditional credit sources. This promotes economic growth and independence at the grassroots levels and contributes to the empowerment of women entrepreneurs.
Conclusion
The Dena Shakti Scheme is one of the many initiatives designed to empower women entrepreneurs, paving the way for a more diversified and balanced entrepreneurial landscape. By offering business loans to women entrepreneurs from a cross-section of sectors against concessional interest rates and favourable loan terms, the Scheme aims to alleviate the credit constraints to establishing and growing women-led businesses.
Frequently Asked Questions
- What Are The Objectives Of Dena Shakti Scheme?
The Dena Shakti Scheme focuses on promoting entrepreneurship among women with affordable finance options. The Dena Shakti Scheme aims to empower women entrepreneurs involved in a range of sectors – from agriculture to MSMEs. The Scheme offers hassle-free business loans to women entrepreneurs to help them establish and grow their ventures.
2. Does The Dena Shakti Scheme Offer Interest Rate Concessions?
Yes. Women-led businesses can secure a Dena Shakti loan with a 0.25% concession on the base interest rate.
3. What Are Eligibility Criteria For A Dena Shakti Business Loan?
All female entrepreneurs with over 50% stake in the business are eligible for a Dena Shakti business loan.
4. Does The Dena Shakti Scheme Offer Microcredit?
Yes. The Dena Shakti Scheme also offers microcredit loans up to Rs. 50,000. Women entrepreneurs can secure such business loans for their small businesses to raise working capital or expand operations.
