21 Personal Loan for Housewives/Women in India

Personal Loan for Housewife

Many female readers (especially housewives) of this site have asked questions related to personal loan for housewives. Their questions are as follows:

  1. Can housewife get personal loan?
  2. Are there lenders offering personal finance for starting small scale business like beauty parlor, day care center, catering business, buying jewelry, others.?
  3. Does government of India offer special loan for women?
  4. What are the different ways homemaker can get personal loan in India?

Everyone has a dream or wishes to fulfill. It could be starting a business, expanding existing business, renovating house, buying appliances, etc. Although an individual can use his/her saving to fulfill the need, it is not possible for everyone to achieve their dream mainly because of lack of finance. Although there are lenders offering personal loan but getting financial assistance is difficult especially for housewives with no income, since they carry high credit risk to the lender.

However in order to give confidence to women by helping in building a business, various schemes are available in the market offering personal loan for housewives. These credit schemes are especially designed for women and many of these sponsored by the government only.

Name of Scheme / LoanWho Offers?Purpose of Loan
Mudra Yojana (3 Schemes – Shishu, Kishor, Tarun)Private and public sector banks, Regional rural banks, Scheduled union co-operative banks, Scheduled state co-operative banks, Micro finance institutions (MFIs), NBFCs, societies and trusts.Refinancing to micro business
Star Mahila Gold Loan SchemeBank of IndiaPurchase of gold jewelery or coins
Can MahilaCanara BankGeneral purpose
V SwashaktiVijaya BankSetting up small business
Sakhi ShaktiIDFC BankMeet financial needs
AB Vanitha Vahan SchemeAndhra BankPurchase of 2 or 4 wheeler
Secured Gold LoanShri Mahila Sewa Sahakari Bank LimitedFor general purpose
ShringaarBhartiya Mahila BankSetting up beauty parlor
AnnapurnaBhartiya Mahila BankSetting up food catering business
ParvarishBhartiya Mahila BankSetting up day care center
Kitchen ModernizationBhartiya Mahila BankMainly but not limited to renovating kitchen
Mahila Udyam Nidhi SchemePunjab National BankSetting up small scale industry
Mahila Samridhi YojanaPunjab National BankPurchasing and setting up of internet cafe and other small businesses
Kalyani Card SchemePunjab National BankAgricultural and non-farming activities
Stree Shakthi PackageState Bank of IndiaSetting up entrepreneurial business
Dena Shakti SchemeDena BankStarting business in select industries
Udyogini SchemePunjab and Sind Bank and Karnataka State Women’s Development Corporation (KSWDC)Starting business in select industries
Annapurna SchemeState Bank of MysoreSetting food catering business
Cent KalyaniCentral Bank of IndiaStarting a new business/expanding or modifying an existing business
Stand-Up India SchemeICICI BankSetting up a greenfield enterprise in select sectors
Mahila Vikas YojanaOriental Bank of CommerceStarting small business

But each come with their own eligibility criteria especially the purpose. Meaning, you cannot avail a loan meant for purchasing a vehicle for starting a business.

Good read: Ways to earn money from home especially for housewife.

Personal loans for housewives have been designed with the need for the home maker in mind. We know how difficult it is for them to access immediate credit in the traditional financial system; banks are accustomed to asking too many requirements to grant their credit, making financing inaccessible for many women. In addition, the time invested in carrying out the entire process is really excessive; several days are wasted trying to get a bank loan.

Other options for homemaker women to get personal loan

In addition to the above mentioned loan schemes for housewife, there are following four options to get personal loan:

Against Fixed Deposit:

Personal loan against FD account is another cost saving option to get a loan. If homemaker has some amount then she can open fixed deposit account and get loan against it. The interest rate charged is very low compared to traditionally bought loan. Almost every bank offers financing against FD. In this case, the FD becomes security.

Against Gold:

If homemaker women has gold jewelry then she can take loan against it. She will have to keep the gold as a security with the bank which will remain in their custody until the loan is fully repaid.

Against Securities:

Similar to gold and term deposit, housewife can keep securities such as life insurance, shares, mutual fund and avail personal loan against the same.

Private Money Lenders:

Although this option is never recommended due to the risks involved but there are trusted money lenders, as well, offering loans at higher interest and in return ask for some kind of security to be kept with them.

Author Bio:

Hi, I am Nikesh Mehta owner and writer of this site.

Nikesh Mehta - ImageI’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business.

I can be reached at [email protected]. You may also visit my LinkedIn profile.

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