Mahila Samriddhi Scheme

Disclaimer…before you read ahead!

The information contained herein is of a general nature and for information purposes only, with the intent of raising awareness around various resources, schemes etc. available for women entrepreneurs in India. It is not intended to address the circumstances of any particular individual or entity. It does not purport to be all-inclusive or necessarily contain all the information that may be relevant for the reader, and may be subject to updating, revision or amendment. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to remain accurate in the future. The reader, therefore, is required to exercise their discretion; and not act on such information without appropriate professional advice after a thorough examination of the particular situation.

Furthermore, we are not a lender and are not authorized by the Reserve Bank of India to act as one. By disseminating the information contained herein, we are not soliciting any borrower or customers for the company or organization mentioned herein nor do we intend to syndicate any capital for the reader of this article.

About this scheme..

IOB Mahila Samriddhi Scheme, launched in August 2023, is a semi unsecured loan offering by Indian Overseas Bank (IOB) tailored to meet the financial needs of GenNext women entrepreneurs.

How is it being implemented?

Under this Scheme, direct financial assistance in the form of loans is given exclusively to,

• • Women entrepreneurs owning & runing their existing of new micro or small units and having Sole Banking Arrangement with IOB

What’s on offer?

I. Product

• Term loan, Working capital facility (fund based, & non fund based like Letter of Credit (LC), Letter of Guarantee (LG))
  • Basis the internal rating of the borrowers by the Bank, upto 30% of projected turnover accepted by the Bank, can be sanctioned as working capital limit
• Ticket Size: ₹10 Lakhs – ₹10 Crores

II. Purpose:

• Acquisition of or investment in fixed assets
• Working capital requirements

III. Borrower Type:

• Sole Proprietorship, Partnership, Limited Liability Partnership (LLP), Private Limited Company

IV. Security or Collateral or Guarantee or Insurance

• Security: Primary charge on assets created out of IOB’s finance
• Collateral
  • For loans upto ₹5 Crores: Nil as the loan will be secured under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Scheme.
    • Premium for this coverage shall be borne by the borrower
    • Separate additional Term Loan (3% of original Term Loan) shall be sanctioned on borrower’s request to pay year-on-year CGTMSE fee for the first 3 years. This loan is to be repaid in 36 EMI without any holiday period
    • Also, if the loans are considered under the Stand Up India Scheme, Credit Guarantee Scheme for Startups (CGSSI) coverage may be taken
  • For loans above ₹5 Crores: Hybrid collateral coverage scheme will be applicable
• Guarantee: Nil
• Insurance: For more information around this, please contact IOB via means mentioned below

V. Interest Rate

• 10% concession applicable under this Scheme on applicable interest rates
• Term Loan & Fund based working capital facility: May range from 9.90% and upwards. For more information around this, please contact IOB via means mentioned below

VI. Processing Fee

• Term loan
  • Upto ₹50 Lakhs: Nil
  • Above ₹50 Lakhs to ₹5 Crores: 0.75% OR 1.00% OR 1.25% of loan amount
  • Above ₹5 Crores:
  • ₹6.25 Lakhs + 1.20% of loan amount above ₹5 Crores, OR
  • 75% OR 1.00% of loan amount, if externally rated by Govt or Govt guaranteed accounts or Public Sector Units
• Working capital facility (fund based, non-fund based)
  • Upto ₹50 Lakhs: Nil
  • Above ₹50 Lakhs: 0.40% – 0.50% of loan amount
• For more information on this, please refer to IOB’s latest Service Charges here

VII. Margin Money Requirement

• At least 20% on stocks
• At least 25% on Book Debts
• At least 20% of the invoice value for purchase of Equipment, Plant & Machinery, Construct Work Shed or Factory Premise & Vehicles etc.

VIII. Tenure, Repayments & Pre-Closures

• Tenure
  • Term loan: upto 84 months including 12 months moratorium
  • Working capital facility: For more information around this, please contact IOB via means mentioned below
• Repayments: EMIs
• Pre-payment & Foreclosure Charges: For more information around this, please refer to IOB’s latest Service Charges here

IX. Turnaround Time

• For more information around this, please contact IOB via means mentioned below

Interested? Read ahead to check your eligibility….

I. Do you have a Sole Banking Arrangement with IOB? [Note: If note, we advise you to develop one to avail this scheme]

II. Does your business have an Udyam Registration Number?

III.

• Do you fully own & managed your business?

OR

• Are majority of the Partners/Directors women holding share capital of at least 51%?

IV.

• If you are an existing borrower of IOB, your loan account has not been categorized as overdue for more than 30 days in the last 12 months?

OR

• If you are a new borrower, the CIBIL or CRIF High Mark Score of all Promoters is 700 and above?

If your answers to the questions above are an emphatic YES, you are all set to avail loan under under IOB Mahila Samriddhi Scheme!

So…how big is this scheme and what has been done so far?

I. Details around this don’t seem to be available in the public domain

So, now, how should you go about it?

I.  For submitting application:

• Please visit one of IOB’s 3,269 branches nearest to you

II. For information on documentation requirements, please contact IOB via means mentioned below

III. For any queries, please contact IOB via

• Toll Free Number: 1800 890 4445 | 1800 425 4445

OR

• Tolled Number: +91 44 28889352

OR

• E-mail: gm-csd@iob.in

OR

• Customer Service Department, Chennai (Principal Nodal Officer): +91 44 28519511

OR

• Visit one of IOB’s 3,269 branches nearest to you

Go on then…and do spread the word!

Sources:                    

1. About IOB Mahila Samriddhi Scheme
2. IOB’s Annual Report 2023-24
3. IOB’s Latest Investor Presentation