This business loan programme gives women business owners a discount on the loan amount. If a woman business owner borrows more than Rs. 20 lakh, they would receive a 0.5% discount off the interest rate. The majority of SBI Bank branches have served as the conduit for the central government’s Stree Shakti Packages.
Stree shakti package eligibility:
A loan under the Stree Shakti Package may be given to companies run by women entrepreneurs. The MSME Department of India’s suggested definition will be applied in order to identify “Women Entrepreneurs” enterprises. A women-owned business is described as “a small-scale industrial unit/industry-related service or business enterprise managed by one or more women entrepreneurs in proprietary concerns or in which she/they individually or jointly have a share capital of not less than 51% as partners/shareholders/Directors of Private Limited Company/Members of Co-operative Society.”
So, the programme is open to female entrepreneurs or female-owned businesses in manufacturing, retail trade, or services. The Stree Shakti package also offers loans to women who work as doctors, beauticians, architects, and chartered accountants.
Amount of loan:
The Stree Shakti package allows for the provision of loans in the form of term loans or working capital. Based on the borrower profile and the following rules, the amount of the loan would be determined:
- Retail traders: Rs. 50000 to Rs.2 Lakhs
- Business enterprises: Rs. 50000 to Rs.2 Lakhs
- Professionals: Rs. 50000 to Rs.25 Lakhs
- SSI: Rs. 50000 to Rs.25 Lakhs
The package includes concessions or relaxations in the margin as well as a low floating rate of interest that is tied to the bank base rate because it is targeted at women entrepreneurs.
Collateral Requirement:
For a loan of up to Rs. 10 lakhs given to MSME businesses owned by women entrepreneurs, no collateral is required. Furthermore, there is no requirement for collateral for CGTMSE-eligible loans for women entrepreneurs up to Rs. 100 lakhs. However, any loan beyond Rs. 1 crore or based on the borrower profile requires security.
Documents Required
Proof of identity: Voter’s ID Card/ Passport/ Driving License/ PAN Card/ signature identification from present bankers of the proprietor, partner or Director (if a company).
Proof of residence: Recent telephone bill, electricity bill, property tax receipt/ Passport/ Voter’s ID Card of the proprietor, partner or Director (if a company).
Proof of business address
Proof of Minority
Last three years balance sheets of the units along with income/sales tax returns etc.
Memorandum and articles of association of the Company/ Partnership Deed of partners etc.
Assets and liabilities statement of promoters and guarantors along with latest income tax returns.
Rent Agreement (if business premises on rent) and clearance from pollution control board if applicable.
SSI registration if applicable.
Projected balance sheets for the next two years in case of working capital limits and for the period of the loan in case of term loan.
In case of takeover of advances, sanction letters of facilities being availed from existing bankers/ Financial Institutions along with detailed terms and conditions.
Profile of the unit (includes names of promoters, other directors in the company, the activity being undertaken, addresses of all offices and plants, shareholding pattern etc.
Last three years balance sheets of the Associate/Group Companies (If any).
Project report (for the proposed project if term funding is required) containing details of the machinery to be acquired, from whom to be acquired, price, names of suppliers, financial details like capacity of machines, capacity utilization assumed, production, sales, projected profit and loss and balance sheets for the next 7to 8 years till the proposed loan is to be paid, the details of labour, staff to be hired, basis of assumption of such financial details etc.
Review of account containing month wise sales (quantity and value both), production (quantity and value), imported raw material (quantity and value), indigenous raw material (quantity and value), value of stocks in process, finished goods (quantity and value), debtors, creditors, bank’s outstandings for working capital limits, term loan limits, bills discounted.
Photocopies of lease deeds/title deeds of all the properties being offered as primary and collateral securities.
Position of accounts from the existing bankers and confirmation about the asset being Standard with them (In case of takeover).
Manufacturing process if applicable, the major profile of executives in the company, any tie-ups, details about raw material used and their suppliers, details about the buyers, details about major competitors and the company’s strength and weaknesses as compared to their competitors etc.
