Canara

Empowering Women in Business: The Mahila Vikas Scheme by Canara Bank

Women in India today are breaking barriers across various industries by launching start-ups, running businesses, and making significant contributions to the workforce.

In both urban and rural regions, women entrepreneurs are driving innovation and creating employment opportunities.

To support and accelerate this movement, financial institutions like we have introduced focused initiatives such as the Mahila Vikas Scheme, which provides women-led businesses with much-needed funding and business assistance.

What is the Canara Mahila Vikas Scheme?

The Mahila Vikas Scheme is a specialized financial assistance program designed to empower and uplift women entrepreneurs. It offers dedicated MSME loans for women to support their businesses, start-ups and other income-generating ventures.

This scheme focuses on women engaged in Micro, Small, and Medium Enterprises (MSMEs), including retail trading and helps them meet both working capital and fixed capital requirements.

Whether it’s purchasing machinery, constructing or acquiring business premises, buying vehicles for business use or managing daily operational costs, this loan for women entrepreneurs ensures that finance is both accessible and inclusive, enabling them to grow and scale their businesses with confidence.

Why the Mahila Vikas Scheme Matters

Access to finance is often one of the biggest challenges women face when starting or expanding a business. The scheme bridges this gap by offering tailored loan products with flexible repayment terms, making it easier for women to scale their businesses. By financially empowering women, it not only supports individual progress but also contributes to economic development and job creation at large.

Key Features of the Scheme

• Nature of Facility:
  • Working Capital Limit
  • Term Loans
• Purpose:
  • Purchase or construction of business premises
  • Buying machinery, equipment or vehicles
  • Meeting working capital requirements
• Target Group:
  • Women-owned enterprises under the MSME category as per the MSMED Act 2006 (updated as per 2020 guidelines)
• Quantum of Loan:
  • Loans of ₹10 lakhs and above can be availed under this scheme
• Margin Requirements:
  • 20% margin for both working capital and term loans
• Repayment Period:
  • Working Capital: 1 year
  • Term Loan: Up to 84 months (including moratorium)
• Security:
  • Primary: Hypothecation of assets created from the loan
  • Collateral: Land, building or approved securities as per risk rating

Who Can Apply?

The scheme is open to a wide range of women-led business entities, including:

• Individuals
• Proprietorship firms
• Partnerships
• LLPs
• Private or Public Limited Companies

For firms or companies, a minimum of 51% ownership by women is mandatory.

Both new and existing businesses are eligible:

• Business entities (existing/proposed) that have completed 2 years of business operations and having a satisfactory track record with the existing banker for last 2 years
• New units: Accepted based on a positive market opinion on the promoter and project

How to Apply

• Step 1: Visit the nearest Canara Bank branch for more details and document checklist
• Step 2: Submit the application form along with requisite documents
• Step 3: Sanction & Disbursement

After assessment, the loan is processed and disbursed to your account for working capital or other approved business purposes.

Conclusion

The Mahila Vikas Scheme by Canara Bank is more than just a loan, it is a powerful step toward gender-inclusive entrepreneurship. By granting credit to women in all industries and at every stage of business, this scheme fosters self-reliance, financial independence and long-term growth.

If you are a woman ready to start or expand your business, the Mahila Vikas Scheme could be the enabler you need to take the next big step.