46 XX | Enlightener Series | A. Public Sector Schemes

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…

Cent Kalyani Scheme was launched by Central Bank of India on 8th March 2013 with an objective to encourage women entrepreneurs to initiate a new project or extend or modernize an existing unit.

How is it being implemented?

Under Cent Kalyani Scheme, direct financial assistance, in the form of loans, is given to

New as well as existing women entrepreneurs operating a Micro or Small Enterprise (defined as per MSMED Act, 2006) that is engaged in manufacturing or service activity
Professionals and Self-employed women

What’s on offer?
I. Product:

Term loan or working capital (overdraft or cash credit) facility upto ₹1 Crore
Non-fund based (letter of credit or letter of guarantee) facility upto ₹1 Crore

II. Purpose:

Capital expenditure requirements
Working capital requirements

III. Borrower Type

Individual (above 18 years), sole proprietorship, partnership firm, private limited company or any other entity

IV. Security or Collateral or Guarantee or Insurance

Nil security or Collateral
However, first charge on all assets created out of the loan extended or assets which are directly associated with the business/projects for which loan has been extended
Mandatory guarantee cover of CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises; CGTMSE Fee for first year to be paid by the bank)
Comprehensive insurance of all assets created out of the loan extended or assets which are directly associated with the business/project for which loan has been extended, with Bank

V. Interest Rate

For loans upto ₹10 Lakhs: MCLR (Marginal Cost of Funds based on Lending Rate) + 0.25% + Loan Tenure Premium, if applicable – Interest Concession, if applicable
For loans above ₹10 Lakhs and Up to ₹1 Crore: MCLR + 0.50% + Loan Tenure Premium, if applicable – Interest Concession, if applicable

Central Bank of India’s latest 1-year MCLR is 7.25%

Interest concession of 0.25% if account is rated by an external agency

Indicative term loan tenure premium (including moratorium) is prescribed below:

1 year upto 3 years: 0.20%
3years upto 7 years: 0.40%

VI. Processing fee

VII. Margin money requirement

20-25%

VIII. Tenure

Maximum 7 years including moratorium period of 6 months to 1 year

Interested? Read ahead to check your eligibility….

Are you setting up or running a Micro-enterprise or Small-enterprise defined per MSMED Act, meaning investment in Plant & Machinery or Equipment of your Enterprise does not exceed ₹10 Crores and Turnover does not exceed ₹50 Crores.

Are you a Professional (doctor, chartered accountant, architect, etc.)?

Are you Self-employed (arts & crafts, beauty parlour, boutique, dietician, fashion designing, tailoring, etc.)?

Do you run a Small Business (canteen, mobile restaurant, day care centre, STD/ Xerox booth, transport operator etc.)?

II. Does your the business or professional activity fall outside the scope of Retail Trade or Education & Training Institute or Self Help Groups?

If your answers to the questions above are an emphatic YES, you are all set to avail loans under Cent Kalyani Scheme!

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

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

So, now, how should you go about it?

I. Reach out to a Central Bank of India branch nearest to you – https://www.centralbankofindia.co.in/en/branch-locator
with duly filled application form and following supporting documents. For details please contact, Central Bank of India’s branch nearest to you

II. Alternatively, you may reach out to the Bank’s Women Entrepreneur Cell at 022 66387777 OR Customer Care at 1800 22 1911

Go on then…and do spread the word!

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