For women who want their own startups, here are 5 unique business loan options from banks
To boost businesseswomen in India, major lenders are offering some unique loans.
Women have founded a huge number of successful startups in India. Among them are Infibeam, Zivame, ShopClues, Limeroad, Yatra, Sheroes, CashKaro, Mobikwik, JetSetGo and Nykaa. Success arising from these startups have gone a long way in boosting confidence among women in India and this is translating into action on ground - they are opting for their own business and working on them with passion and dedication. However, one of the most important steps for opening any business would be availability of funds. To boost women businesses in India, major lenders have been offering various unique business loans. These loans become attractive for women because of their features such as low interest rates, no collateral, or even third-party guarantee, maximum repayment tenure and also low to almost zero processing fees. So, all those planning to open their own businesses or intending to revamp existing ones, can virtually say goodbye to their financial worries. Let’s find out how!
Syndicate Bank’s Synd Mahila Shakti:
A women can avail loan cash credit loan here for the purpose of meeting working capital requirement for existing or new businesses. Also available is the term loan option for setting up a a unit/business either manufacturing or service enterprise qualifying under Micro, Small and Medium Enterprises. Even to upgrade existing units by purchase of machineries/equipments /computers/vehicles etc. term loan plans are available.
Eligibility criteria at Syndicate Bank is that a women must be equipped with Technical Educational Background/Diploma/ Graduate having knowledge/experience in the line of activity or business. Loans are given also to individual proprietorship concern/partnership concern with woman in the lead having at least 50% of financial holding. Also for private companies with woman as Managing Director/a Director in a key position.
Maximum loan amount upto Rs 5 crore can be availed. Maximum repayment period of 7 to 10 years including repayment holiday/ moratorium period.
Dena Bank’s Shakti Scheme:
At this state-owned bank, maximum ceiling limits that can be considered for financing to women beneficiaries under this scheme will be as per the directives of RBI stipulated for various sectors under priority sector such as loans upto Rs 20.00 lakhs under retail trade, Rs 20 lakhs under education and housing and Rs 50000/- under micro credit as well as Bank's specific schemes circulated to branches / offices from time to time.
Interest rates is to be charged as per extant guidelines of our Bank and R.B.I.directives, as applicable to various sectors of Agriculture, SE, and OPS . A concession / rebate @ 25 basis points in the rate of interest as applicable to existing activities is to provided to the women beneficiaries subject to certain conditions specified by the Bank.
State Bank of India (SBI) Stree Shakti Package:
The Stree Shakti Package is a unique scheme run by the SBI, aimed at supporting entrepreneurship among women by providing certain concessions. An enterprise should have more than 50% of its share capital owned by women to qualify for the scheme.
Concessions offered under the Stree Shakti Package are:
- The margin will be lowered by 5% as applicable to separate categories.
- The interest rate will be lowered by 0.5% in case the loan exceeds Rs 2 lakh.
- No security is required for loans up to Rs 5 lakh in case of tiny sector units.
Punjab National Bank (PNB) Mahila Udyam Nidhi Scheme:
To meet gap in equity. The women entrepreneurs will be assisted for setting up of new projects in tiny /small scale sector and rehabilitation of viable sick SSI units. Existing tiny and small scale industrial units and service industries undertaking expansion, modernization technology up gradation & diversification can also be considered. Maximum loan tenure is set at 10 years.
Central Bank of India Kalyani:
Offered by Central Bank of India, this one is available for new as well as existing women entrepreneurs. Maximum loan amount of Rs 100 lakhs can be availed. Interest rate is set at MCLR + 0.25% on loan amount upto Rs 10 lakhs. The rate is MCLR+ 0.50% spread on amount above Rs 10 lakhs upto Rs 100 lakhs. Additional interest concessions of 0.25% is given if account is rated by external agency. Loans for businesses like handloom, food processing, garment, health, beauty clinics, dietitians, fashions, designing beauty parlors, mobile restaurant, tailoring, three wheeler and four-wheeler among others are some segment available for women.
Orient Mahila Vikas Yojana Scheme:
This type of loan can be availed jointly or individual, however, having a share capital of 51% or more as shareholders, partners, members, directors of a business. There are no collateral security for women entrepreneurs on loan amounts starting from Rs 10 lakhs up till Rs 25 lakhs if it is small-scale industries. A 2% concession rate is given on the interest rates.
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