Women Baking Entrepreneurs: Government Schemes

by Akhileshwari Anand Raj

With the rise of the home baking industry across India, we have seen more and more women engaging in business activities. This includes homemakers who have a business or women who pursue it as a side hustle. Overall, baking has been a truly empowering sector for women. The popularity of the home baking model has pervaded through to smaller cities and towns from the metros. More women are now opening studio spaces and storefronts too. Getting your business off the ground can be expensive. This is where the Government has come up with schemes to help you start off. Every business can do better with more capital. If you are someone who intends to move out of their home kitchen to a studio or start a storefront, these schemes are for you!

1. TREAD (Trade Related Entrepreneurship Assistance and Development) Scheme

This scheme’s main goal is to provide training and to offer networking opportunities to women. This is primarily for those who intend to start up a small-scale business. They also provide credit for the same by partnering with lending institutions. This is to cover up to 30% of the cost of the project. This is a great package as it helps with financing your education and business capital.

2. Mahila Udyam Nidhi Scheme

This scheme offers credit to women who are starting a new business altogether or upgrading their existing business facilities and infrastructure. This is offered by the Small Industries Development Bank of India (SIDBI) and women under this scheme are eligible to borrow up to Rs. 10 lakh. The total period of lending is 10 years and there is a moratorium period of 5 years offered by the bank. The interest rates for this scheme vary from city to city and the prevailing market conditions as well.

3. Annapurna Scheme

This is a scheme that is specific to women entrepreneurs working in the food catering industry, and this means home bakers will most definitely fall under this niche category. The criteria is that the woman must start a food catering unit and can avail a loan of up to Rs. 50000. This credit is given for purchasing required utensils for the kitchen and other equipment – such as ovens, refrigerators, etc. It is to be paid in 36 installments as determined at the time of lending, and this scheme needs a guarantor to avail of the loan. The interest rates for these loans will be based not on banks’ individual lending rates but as per the scheme. It requires that the assets procured using the loan will have to be offered to the bank as collateral.

4. Bhartiya Mahila Business Bank Loan (now offered by the State Bank of India post-merger)

This scheme ensures that women business owners can avail of a loan of up to Rs 20 crore. This is one of the programs with such a high monetary offering which is a great opportunity for women bakers who are looking to expand their existing business. This specifically covers women owners in the manufacturing industry, so your enterprise must fulfil the definition of manufacture. The best part is that collateral is not required for a loan of up to Rs. 1 crore, as this is guaranteed under the Credit Guarantee Fund Trust for Micro and Small Enterprises. The period of borrowing under this credit scheme is up to 7 years. This scheme was initially introduced and conceptualized by the Bhartiya Mahila Bank, and is now carried out by the State Bank of India. This is because the Bhartiya Mahila Bank merged with the State Bank of India in 2017.

5. Cent Kalyani Scheme

This scheme is offered by the Central Bank of India. It is aimed at women business owners in any sector and this includes the food catering industry. Under this scheme, loans are extended up to a value of Rs 1 crore and no collateral is required, and nor are guarantors. Interest rates on loans under this scheme depend on market rates.

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