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 updation, 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 email.
About the scheme…
Union Nari Shakti was launched by Union Bank of India during the fiscal 2014-15 to meet credit needs of women entrepreneurs with a view to promote entrepreneurship amongst women and to make them self-sufficient.
How is it being implemented?
Under Union Nari Shakti scheme, direct financial assistance, in the form of loans, is given to
- Women owned and managed Micro or Small or Medium Enterprise (defined as per MSMED Act, 2006) that is engaged in manufacture or production, processing or preservation of goods; or providing or rendering of services; or engaged in trading activity
What’s on offer?
I. Product:
- Term loans and/or
- Fund based (overdraft or cash credit) and/or non-fund based (letter of credit or letter of guarantee) working capital
- Quantum from ₹2 Lakhs upto ₹10 Crores (the limit seems to have been raised from ₹2 Crores to ₹10 Crores in the recent past)
- For term loans, need based limit to be sanctioned based on cost of project and promoter’s margin, profitability projections acceptable to the Bank as per its existing norms
- For working capital, need based limit to be sanctioned as per eligibility assessed on the basis of prevailing method of assessment of working capital limit as detailed in Bank’s Loan Policy
II. Purpose:
- Acquisition of fixed assets
- Working capital requirements
III. Borrower Type
- Proprietorship Concern, Partnership Firm, LLP, Private or Public Limited Company, Women Self Help Group (SHG)
IV. Security or Collateral or Guarantee or Insurance
- Nil security. However,
- For term loans, exclusive charge on assets created out of bank finance
- For working capital, exclusive charge on stock and book debts
- On collaterals,
- Exposure upto Rs.2 Crores (Rs.1 Crore for Trading accounts) to be covered under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and no collateral security is to be obtained. However, if borrower offers any collateral security, the same may be obtained and the portion of credit facility not covered by collateral security, can be covered under CGTMSE scheme as per Hybrid Scheme of CGTMSE
- Exposure above Rs.2 Crores (Rs.1 Crore for Trading accounts) may also be covered under Hybrid scheme of CGTMSE. Accordingly, exposure not covered under credit guarantee scheme is required to be covered by 25% of collateral
- SHG borrowers are to be covered under Credit Guarantee Fund for Micro Units (CGFMU) or any other guarantee scheme as per the eligibility
- For information around requirement of third party guarantee, please contact your nearest UBOI branch
- For information around requirement of insurance, please contact your nearest UBOI branch
V. Interest Rate
- Per Bank’s prevailing guidelines
- Can range anywhere between 7.7% to 12.5% depending upon whether your business is a Micro, Small or Medium Enterprise; loan ticket size; Bank’s internal credit rating of your business; and prevailing EBLR (External Benchmark Linked Interest Rate) or MCLR (Marginal Cost of Funds based Lending Rates) rates
VI. Processing fee
- For loans upto Rs.2 Crores – NIL
- For loans above Rs.2 Crores – 50% concession in applicable charges. For details on applicable charges, please contact Bank via means mention below
VII. Margin money requirement
- For loans upto ₹1 Crore, minimum 5% margin
- For loans above ₹1 Crore, minimum 15% margin
VIII. Tenure
- For term loans, tenure will be as per the gestation period of the project with required moratorium
- For working capital finance, 1 year subject to renewal by competent authority on yearly basis on the basis of merit
IX. Turnaround Time
- For turnaround time, please contact your nearest UBOI branch’
Interested? Read ahead to check your eligibility….
I.
Are you running a Micro-enterprise or Small-enterprise or Medium-enterprise defined per MSMED Act, meaning, investment in plant and machinery or equipment of your enterprise does not exceed ₹50 Crores and turnover does not exceed ₹250 Crores? (Note that definition of Micro- enterprise or Small-enterprise or Medium-enterprise per MSMED Act has been changed since July 1, 2020)
II.
Do you fully own and manage your business?
OR
Do you individually or jointly with other women constitute minimum 51% of Partner’s capital in the Partnership Firm, and control management of the business?
OR
Do you individually or jointly with other women own minimum 51% in the private or public limited company, and control management of the business?
OR
Are you a Women Self Help Group (SHG) having valid Udyam Registration Certificate?
If your answers to the question above is an emphatic YES, you are all set to avail loans under Union Nari Shakti!
So…how big is this scheme and what has been done so far?
I. During FY 2021-22, 1,113 applications worth Rs.149.92 Crores were sanctioned under this Scheme
II. However, UBOI’s total outstanding loans to women beneficiaries (primarily women entrepreneurs!) was ₹89,110 Crores as on March 31, 2022.
So, now, how should you go about it?
I.
To apply for loan online, please click here
(There seems to be a problem with the link at the moment, hopefully it will be resolved soon)
OR
Contact your nearest UBOI Branch here
II.
Contact your nearest UBOI Branch –
https://eremit.unionbankofindia.co.in/livebranch
OR
Call Toll-Free Number: 1800 2222 44, 1800 208 2244
Call Charged Number: 080 61817110
III. For information on loan application and indicative list of documentation, click here
Go on then…and do spread the word!
Sources:
