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…
IOB SME Mahila Plus Scheme was launched by Indian Overseas Bank on 23rd November 2012 as a part of Bank’s initiatives to encourage women entrepreneurs or self-employed women who are already in business or who desire to start a business of their own; and encourage qualified women to become self employed and build entrepreneurship traits among them.
How is it being implemented?
Under IOB SME Mahila Plus 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
- Self-employed women
- Professionals
What’s on offer?
I. Product:
Term loan (for fixed assets) or working capital (cash credit) facility
- Composite loan upto ₹2 Crores for a manufacturing enterprise
- Composite loan upto ₹1 Crore for a service enterprise
II. Purpose:
- Capital expenditure requirements
- Working capital requirements
III. Borrower Type
- Individuals (between 21 to 50 years), sole proprietorship, partnership firm, private limited company
IV. Security or Collateral or Guarantee or Insurance
- Nil security or collateral or third party guarantee for loans upto ₹1 Crore
- However,
- For term loans, first charge on all assets created out of the loan extended
- For working capital loans, first charge on stocks, and assignment of book debts & receivables up to 120 days
- Mandatory guarantee cover of CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) for all loans upto ₹1 Crore
- Collaterals for loans above ₹1 Crore may be required to cover at least 50% of the credit facility. For more information on this, please contact your nearest IOB branch
Third party guarantee is optional for loans above ₹1 Crore - For information around requirement of insurance, please contact your nearest IOB branch
V. Interest Rate
- For term loans for construction or setting up of factory or business premises, Base Rate + 1.50%
- For term loans for purchase of machinery, equipment etc., Base Rate + 1.75%
- For working capital loans, Base Rate + 1.25%Indian Oversees Bank’s current Base Rate seems to be 9.45%. Please contact your nearest IOB branch for latest information on this.
VI. Processing fee
- ₹200 per Lakh of loan term loan and/or working capital loan, with a maximum of ₹20,000
VII. Margin money requirement
- As per extant guidelines for lending to Micro & Small Enterprise sector. For more information please contact your nearest IOB branch
VIII. Tenure
- For term loans for construction of factory or business premises, 12 months’ moratorium + 10 years
- For term loans for purchase of machinery, equipment etc., 3 months’ moratorium + 7 years
- For cash credit, renewed annually
IX. Turnaround Time
- Simple processing with a turnaround time of 14 days from the date of submission of proposal
Interested? Read ahead to check your eligibility….
I.
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 both in the manufacturing as well as services sector?
OR
Are you Self-employed?
OR
Are you a Professional?
II. Are you a graduate, or a graduate with a technical qualification? The latter would be preferred.
III.
Do you fully manage your existing business?
OR
Do you individually or jointly with other women constitute majority in the Proprietorship Concern or Partnership?
OR
Are you a Managing Director/or a Director in a key position in a Private Limited Company?
If your answers to the questions above are an emphatic YES, you are all set to avail loans under IOB SME Mahila Plus Scheme!
So…how big is this scheme and what has been done so far?
I. Details for IOB SME Mahila Plus Scheme doesn’t seem to be available in the public domain
II. However, IOB’s credit to women stood at ₹25,309 Crores as on March 31, 2021 across their various special schemes exclusively for women for both income and non-income generating activities. This constituted 16.01% of the Bank’s Adjusted Net Bank Credit
So, now, how should you go about it?
I. For more information on how to apply, application form and list of documentation required, reach out to an Indian Overseas Bank branch nearest to you – https://www.iob.in/Branch.aspx
II. Alternatively, you may reach out to the Bank’s 24×7 helpline number 1800 425 4445
Go on then…and do spread the word!
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