How SBI Business Loan for Women Works?

SBI Business Loan for Women

Business is meant for people who are ready to face challenges. And if a woman takes up this challenge, lots of supportive schemes stand up to ensure that the experience is as smooth as possible. In the past two decades, the number of women-owned businesses has increased and due to this many financial institutions have come up with the multiple business loan schemes for women.SBI Stree Shakti Package is one of them. SBI offered business loan for women is characterized by a low rate of interests, high loan repayment tenures, low processing fees, minimum documentation, etc. 

SBI agrees with the fact that no matter how great the business is if there is not sufficient investment for it, the success of it is always in question. The reason being SBI Business Loan can be availed by all. With the help of these loans, women can find owning a business more easily and affordable.

Let’s have a look at some key features of the SBI business loan for women:

  • Rate of interest is lowered by 0.5% if the loan amount exceeds Rs. 2,00, 000.
  • SBI business loan margin is reduced by 5% as applicable to separate categories.
  • This scheme is only offered to the women who have participated in the Entrepreneurship Development Programmes.
  • SBI business loan for women can be availed without security if the loan amount is up to Rs. 5,00,000.

Businesses owned by women have increased the employment opportunity in India. This means the growth of women-owned businesses also boosting up the national economy. To support this growth and development of the nation SBI business loan comes along with the following benefits:

  • Easy to access

This loan is easily accessible as the borrower does not require providing collateral for the loan amount up to Rs. 5 lakhs. 

  • Low rate of interest 

Women who wish to avail SBI business loans can have the benefit of concession on the interest rates. SBI offers a concession of 0.5% on business if the loan amount exceeds Rs.2 lakhs. This can help women entrepreneurs to use the money saved to scale for their business.

  • Flexible repayment terms 

SBI business loan for women entrepreneurs can be repaid in easy equated monthly installments (EMIs). SBI understands that every business faces many ups and downs which are why they offer easy and flexible loan repayment tenures.

To facilitate the borrowers SBI has the EMI calculator which is easy to use. It helps a borrower to know about the monthly payment amount so he/she can choose the repayment tenure, loan amount accordingly. This also decreases the chances of being a loan default and eventually helps the borrower in maintaining and improving the credit score.

Here are few more benefits of SBI business loan EMI calculator:

  • SBI Business loan EMI calculator helps a borrower to calculate the monthly EMI at a different rate of interest.
  • SBI EMI calculator facilitates the borrower to know his/her capacity to repay the loan after meeting the regular monthly expenses.
  • It gives a rough idea about the monthly EMI and so a borrower can plan the monthly budget accordingly.

The interest rate plays a major in any type of loan. SBI business loan rate of interest is based on any factors some of those factors are –

  • Loan amount: The business loan interest rate in SBI depends upon the availed loan amount. They have a negative relationship with each other as higher the loan amount lesser will be the interest rate.
  • Credit Score: SBI business loan for women comes at a higher rate of interest if the borrower’s credit score is low or vice versa. 
  • Revenue: The rate of interest will be lower if the business turnover is high.

Eligibility for the SBI business loan for women

The main factors on which the eligibility of a borrower depends are:

Age- Age plays a significant role as it enables the lender to know about the repayment capacity of a borrower. SBI offers business loans to those who are a minimum of 21 years at the time of loan approval and a maximum of 65 years at the time of loan maturity.

Ownership- a borrower should have more than 50% of its share capital to avail the SBI business loan for women.

Required Documents 

Here is the list of generic documents required for the SBI business loan however the documents requirement varies depending on the factors like loan amount, etc.

  • Residential proof: Aadhaar Card, Voter’s ID card, Bank statement, registry copy, rent agreement, utility bills.
  • Proof of Identity: Passport, Driving License, PAN Card, Aadhaar Card, Voter’s ID Card.
  • Proof of Business existence: PAN, sales tax/ excise/ VAT/ service tax registration, Copy of partnership deed, Trade license, certificate of practice, registration certificate issued by RBI, SEBI.
  • Income Tax PAN copy for 24 months.
  • Last 6 months bank statement. 

Following these simple steps, a woman can avail a Business loan for her and can easily start.