SBI Business Loan for Women

Please Note: SBI is not a Paisabazaar partner. Offers would be from partner banks/NBFCs only. Currently, this scheme is not functional, however you may check the SBI’s Simplified Small Business Loan Scheme for Women Entrepreneurs.

Women are increasingly making a mark in entrepreneurial ventures. This increased participation is evident from the increased ratio of women opting for business loans. Keeping in mind the specific business funding needs of women, the State Bank of India offers a unique customized scheme, namely the Stree Shakti Package for female entrepreneurs.

SBI Business Loan for Women – 2023 (Stree Shakti Scheme)
Interest Rate	Depends on your business profile
Loan Amount	Up to Rs. 20 lakh
Share capital owned by women	50%
Collateral	Not required for loans up to Rs. 5 lakh
Margin	Lowered by 0.5% for separate categories

*SBI 1 year MCLR with effect from 15th Feb 2023 is 8.50%.

Also Read: What are the top 5 loan schemes in India for female entrepreneurs to start their business?

Interest Rate

Interest Rate	Depends on the applicant’s profile & business requirements
Processing Fee	From 1% – 5% of the sanctioned loan amount
Loan Amount	Min. Rs. 10,000 – Max. up to Rs. 500 crore*
Collateral	Not required for unsecured business loans
Repayment Tenure	From 12 months – 5 years, may exceed as per business requirements
Loan Disbursal Duration	Depends on case to case

Note: Note: The mentioned fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges.

The interest rate is dependent upon the prevailing base rate of the bank at the time of loan approval. There is a rate concession of 0.5% in case the loan amount is exceeding Rs 2 lakhs.

Under this scheme, there is no need for security by way of mortgage of assets in case the loan amount is up to Rs 5 lakh.

Eligibility Criteria

The business loan is focused on promoting entrepreneurship amongst women. The MSME Ministry of India defines a woman entrepreneurial business as “A small scale industrial unit/industry-related service or business enterprise managed by one or more women entrepreneurs in proprietary concerns or in which she/they individually or jointly have a share capital of not less than 51% as partners/shareholders/directors of private limited company/members of co-operative society’’.

• Women-owned business: Accordingly, the qualifying criteria to avail this business loan are that the enterprise mandatorily has a shareholding of over 50% by women
• EDP participation: Additionally, female entrepreneurs should pursue the Entrepreneurship Development Programmes (EDP) organized by the state agency to obtain a loan under this scheme.
• Applicability: The loan will be extended to small business units engaged in retail trade, manufacturing activities, provision of services. Self-employed professional women like doctors, architects, and CAs are also eligible to obtain a business loan.

The Stree Shakti Loan scheme has financially empowered women, especially in rural areas. Some of the popular small business segments where this scheme finds application are:

• Dairy produce
• Manufacture of readymade clothing
• Marketing of farm produce like seeds
• Production of indigenous unbranded soaps and detergents
• Cottage industries like the manufacture of spices and incense sticks

 The loans availed are to be applied exclusively for business purposes. The nature of the loan may be short-term working capital assistance or a long-run term loan to facilitate capital expenditure. Some additional features include:

Relaxation criteria: There are concessions and reductions in margins, with optimal floating interest rates linked to the bank’s base rate to provide economic incentives to women entrepreneurs. For example, the margin will be lowered by 5% in the case of certain categories. However, there is no interest concession offered on loan advances to retail traders

Repayment Tenure

The minimum repayment period offered by SBI bank is 12 months, whereas the maximum repayment period is of 5 years. (may exceed as per the business requirements)

Documents required for Loan Application

Mentioned documents must be submitted at the time of loan application for the loan to be considered for further processing by the bank.

• Identity Proof: Valid proof like Voter ID Card, Passport, Driving License, PAN Card
• Residence Proof: Telephone bill, electricity bill, property tax receipt, passport, Voter’s ID card of the proprietor, partner or director (in case of a company) is accepted as proof of residence
• Address Proof of the registered address of the business unit: The eligible documents comprise the incorporation certificate or registration certificate in the case of a company or partnership firm.
• Financial Statements: In addition to incentivizing entrepreneurship, SBI is also concerned with the repayment capability of the borrower. Thus, the balance sheets, income statement, and last 3 years’ GST returns of the company
• Business plan: A business plan with projected financials for at least 2 years in case of working capital assistance and for the loan tenure in case of a term loan is insisted upon by SBI
• Detailed profile of the business enterprise name, names of promoters, directors, partners, nature of the business activity, addresses of all existing facilities and premises, shareholding ratios, etc
• The bank may also require the financial statements of the previous three years of sister concerns like subsidiaries, associate concerns, or group companies
• Copies of lease agreements, ownership title deeds of real estate property being offered as collateral

Additional documents might be required depending on various applications and person-to-person in which the sole discretion will be of the bank.

FAQs

Q1. What are the documents required for a business loan from SBI?

Below mentioned are the documents required to get a business loan from SBI:

• 2 Passport sized photographs
• Duly filled Application form
• KYC documents of applicant and co-applicants/partners
• Self-written Business Plan
• Identity, Address, Age and Income Proofs
• Business Address Proof
• Proof of business vintage along with P&L statement
• Last 12 months’ bank statement
• Copy of last year 2 years’ ITR and Sales Tax returns
• Copy of Establishment, Registrations and Licenses

Q2. How can I get a small business loan from SBI?

To get an SME loan from SBI you can visit paisabazaar.com to check and compare all types of SME loans offered by SBI and submit basic details to get a call from SBI’s representative to proceed further.

Q3. What is the interest rate for business loans from SBI?

The interest rate of SME loans offered under CGTMSE and provided by SBI starts from as low as 7.40% p.a. onwards.

Q4. How many types of loans are available from SBI?

There are several types of loans available from SBI. To check the details of each loan you can either visit paisabazaar.com or can go to the official website of SBI.