46 XX | Enlightener Series | C. Private Sector Schemes | C.21 Shriram Finance Women Entrepreneur Loan

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…

Shriram Finance Women Entrepreneur Loan, was launched by Shriram Finance Limited (SFL), a Non-Banking Financial Company (NBFC) registered with Reserve Bank of India (RBI), to provide women-owned businesses with the financial resources needed to start, grow, or expand their ventures so that they can run their businesses independently.

How is it being implemented?

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

Women who are professionals, self-employed individuals or run a business in trading or manufacturing or services sector

What’s on offer?

I. Product

Term Loan
Ticket Size: ₹1 Lakh to ₹30 Lakhs

II. Purpose:

Investment/acquisition of fixed assets to upgrade technology, expand product lines etc.
Working capital requirements

III. Borrower Type:

Individuals, Sole Proprietorship, Partnership, Limited Liability Partnership (LLP), Private Limited Company, Public Limited Company

IV. Security or Collateral or Guarantee or Insurance

Security: First charge over assets created out of the loan disbursed under the Scheme
Collateral: Nil
- However, women who do not have a steady source of income can qualify for a secured loan
  under this Scheme if they own property. In this case, the loan-to-value ratio for unemployed
  women will be lower than those with a steady income source
Guarantee: Nil
Insurance: For more information around this, please contact SFL via means mentioned below

V. Interest Rate

Typically ranges from
- 15% – 30% per annum on reducing balance basis, OR
- 12% – 42% on fixed basis
For SFL’s latest interest rate policy, please refer here
SFL will consider lower than its normal interest rates especially for women entrepreneurs. For more information on this, please contact SFL via means mentioned below

VI. Processing Fee

Typically, upto 5% of loan amount
SFL may consider lower than its normal processing fee (2 – 3% of loan amount) especially for women entrepreneurs. For more information on this, please contact SFL via means mentioned below

VII. Margin Money Requirement

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

VIII. Tenure, Repayments & Pre-Closures

Tenure: 12 – 60 months
Repayments: EMIs, can negotiate more flexible repayment terms. You may calculate potential EMIs using this calculator
Foreclosure Charges:
- 4% of principal outstanding if the account is foreclosed within 12 months
- 3% of principal outstanding if the account is foreclosed between 12 – 24 months
- 2% of principal outstanding if the account is foreclosed after 24 months
- For SFL’s latest foreclosure policy, please refer here
- However, there may be no penalties charged from women entrepreneurs on early repayment of the loans. For more information around this, please contact SFL via means mentioned below
Part Pre-payment Charges: For more information around this, please contact SFL via means mentioned below

IX. Turnaround Time

Typically, loans are disbursed within 2 – 3 business days, depending on the credibility of the information furnished, fulfilment of the eligibility criteria and submission of relevant documents.
Loan applications from women-owned businesses are processed on a priority basis