Women are the engines of enriching the society, but woefully, their laudable contributions are often overlooked. Around the world, women are doing extraordinary things - but these achievements were often not recognized. In recent era, Women entrepreneurship has been recognized as an important source of economic growth. Women entrepreneurs create new jobs for themselves and others, provide society with different solutions to management, organization and business problems. However, they still represent a minority of all entrepreneurs. Women entrepreneurs often face gender-based barriers to start and grow their businesses, lack of access to formal finance mechanisms; limited mobility and access to information and networks, etc.

With an objective of empowering women and to provide financial assistance to women and in order to encourage women entrepreneurs who wish to start/expand their business, a new credit product on the occasion of the International women's day on 8th March 2021, which has been named - "Vikas Asha" is introduced with following features:

Sl. No Details Guidelines
1. Name of the Product Vikas Asha
2. Purpose

To meet business related needs including purchase/ construction of business premises, purchase of machinery/equipment/vehicle and also working capital requirements under Micro and Small Enterprises including Retail Trade

3. Eligibility

Individuals, Proprietorship concern, Partnership firm, LLP, Corporate bodies (In case of Partnership Firm, the majority of partners should be women and incase of Companies the management should be controlled by the Women)

  1. Existing customers with satisfactory track record (both conduct of account and financials of the applicant unit shall be satisfactory)
  2. New customers subject to satisfactory dealings with their existing bankers, if any.
  3. New units subject to satisfactory market opinion on the promoters and prospects of the project/business proposed.
4. Nature of credit facility

Term loan and/or Working capital by way of Overdraft facility

5. Quantum of finance Up to Rs.10.00 lakhs only. In case of existing satisfactorily running units, the amount of Rs.10.00 lakhs shall be in addition to the existing exposure, if any.
6. Security

I. Primary Security:
Hypothecation of assets created out of Bank finance / hypothecation of paid stocks / book debts. Book debts of a period of up to 90 days shall be considered while fixing drawing power.

II Collateral Security:
i. If covered under CGTMSE, no collateral security shall be obtained.
ii. If not covered under CGTMSE, collateral security by way of Mortgage of non-agricultural property / lien on NSC/KVP, Deposits,assignment of LIC policies / hypothecation of vehicles, totally valued not less than 20% of existing and proposed credit facility.

(No CGTMSE coverage for credit facility sanctioned under Retail Trade activity)

7. Margin The primary security coverage ratio should be a minimum of 125%.
8. Guarantee In case the credit facility is not covered under CGTMSE, third party guarantee acceptable to the Bank having net worth of at least equal to the loan amount shall be obtained.
9. Disbursement 1. For Working Capital- Running limit
2. For Term Loan- Disbursement against invoice/bills/vouchers/quotation directly to the vendor/supplier. In case of construction of business premises, amount has to be released in stages as per progress of construction.
10. Repayment 1. Working Capital limit - Annual review of the account
2. Term loan - Equated monthly installments up to 84 months including moratorium of up to 6 months. However, in case of construction of business premises, the moratorium can be extended up to a maximum of 12 months
11. Rate of Interest 11.00% p.a. and Overdue rate at 13.00% p.a. (Normal @ 11.00% p.a.+ Overdue interest @ 2.00% p.a.)