How to finance your Sanitary napkin Business


There are millions of women who do not have access to high quality and affordable sanitary napkins. Research states that approximately 300 Million women rely on old rags, plastic or ash to manage their menstrual cycle s. This gap needs to be filled and it can be filled by entrepreneurs who are willing to set up their own Micro/Mid-sized Sanitary Napkin business and non profit organizations that work on menstrual hygiene awareness to solve for 4As: Accessibility, Affordability, Awareness and Advocacy.

With growing awareness about menstrual hygiene, the Indian market for sanitary napkins has doubled every 5 years since the year 2005

We, at Saral Designs, have interacted with many aspiring entrepreneurs who are keen to set up their sanitary napkin manufacturing business and understand the financial constraints and risks that entrepreneurs face while deciding to get into a new venture.

With the aim to make information more open source, we have started our “How to” blog series. Our first blog in the series wasHow to start your own sanitary napkin business” which had a great response and many wanted to learn more about loans schemes and subsidies available to start a sanitary napkin business. Hence, we have curated a small list of loans that will aid your decision-making process with our “How to finance your sanitary napkin business”

Some Loan Schemes that are available are:

1. Mudra Loan

About this scheme:

MUDRA is a refinancing institution. Which means that it will not provide the loan directly to the MSME owner but via a Financial Institution, NBFC, MFI etc. Mudra loans can be availed from any nearby branch office of the above mentioned entities. You can also file an online application on Udyamimitra portal.

What’s on offer?

Amount:
Loan up to Rs 10 Lakh

Eligibility:
Any Indian national can avail this loan

Check out details here

2. Stand-up India

About this scheme:

Stand up India Scheme has an objective to facilitate bank loans for setting up a new enterprise in manufacturing, service or trading. The primary benefit of this scheme is that it provides a fair chance to scheduled caste, scheduled tribe and for women too.

What’s on offer?

Amount:
Composite Loan from Rs. 10 lakh up to Rs 100 Lakh

Eligibility:
SC/ST and/or Women Entrepreneurs, Above the age of 18 years

Check out details here

3. IOB SME Mahila Plus Scheme

About this scheme:

This Scheme was launched by Indian Overseas Bank as a part of the Bank’s initiatives to encourage and inspire women who desire to start a business of their own, become self-employed and build entrepreneurship traits among them.

What’s on offer?

Amount:

Composite Loan up to Rs 200 lakh for a manufacturing enterprise

Eligibility:

  • Qualified Women (minimum Graduate) in the age group of 21 to 50
  • Either a Proprietorship Concern, Private Ltd, Existing unit or a partnership with women in the lead or the Managing director

Check out details here

4. SIDBI Make In India Soft Loan Fund For Micro Small And Medium Enterprises (Smile)

 About this scheme:

This government loan scheme aims to take forward the Government of India’s ‘Make in India’ campaign by helping micro, small and medium enterprises with a loan from a Small Industry Development Bank of India.

The main objective of this loan is for it to be favorable for the entrepreneur/ borrower to meet the debt-equity ratio of any entity and hence the loan is called a Soft loan with a longer repayment period and lesser rate of interest.

What’s on offer?

Amount:

Soft Loan up to Rs 25 lakh

Eligibility:

  • Can be availed by both- New and Existing entrepreneurs

Check out details here

5. Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE)

 About this scheme:

This is an Unsecured loan provided by the Government of India where you do not have to offer any collateral property/asset etc.

What’s on offer?

Amount:
Working capital loan up to Rs 200 lakh

Eligibility:·

  • Both new entrepreneurs and existing ones are eligible for this loan.
  • A mandatory requirement of IT, PAN number prior to availing of credit facility from the eligible lending institution of credit facility above Rs 5 lakh.
  • Udyog Aadhaar Number of every borrower

Check out details here

6. Business Loans in 59 Minutes for Micro, Small and Medium Enterprises (MSME)

About this scheme:

This government scheme for small businesses in India gives approval or denies the loan within 59 minutes and the loan is disbursed in 7-8 days if it is approved.The borrower is given the flexibility to choose the lender

What’s on offer?
Amount: Business loan up to Rs 500 lakh
Eligibility
 Only for Existing small business
Check out details here

With all these details, we hope that you are better equipped to start your own Sanitary Napkin Business!

Disclaimer: The schemes and benefits listed above may change their terms and conditions, thus, it is best to check the respective web links for the latest and most accurate information about the loan schemes. Saral Designs shall not be liable for any inaccuracy or change in information on these schemes.

Author: Dhruti GanatraBusiness Development Manager, Saral Designs
Dhruti is Marketing Professional with a Master’s degree in marketing. She has worked in sales and marketing in India and as well the United States and has her bachelor’s in commerce.
Her previous work and internship experience include working with companies like ICICI Bank Ltd, ACG Group, Jio Studios (now Jio Creative Labs) and for a Veteran Owned startup supported by the Bunker labs in The United States. She has been a part of various social campaigns which involved awareness about Breast cancer, Swacch Bharat Abhiyan etc.