Suchita Mane
Apnapaisa.com
This summer attending my friend’s wedding brought me double delight where I bumped with my childhood friend Naina who was doing photographic coverage of the wedding with great precision. I was quite thrilled to see my school mate turning photographer for another school mate’s marriage. My doubt was immediately clarified that she was not covering the marriage as a friend but as a professional photographer.
I was amazed so see the shy housewife for many years transforming into a full-fledged entrepreneur or you may call confident photographer. Beaming with pride she shared with me about the celebrity marriages she is going to cover this season.
It set my thought process- How did Naina achieve this remarkable feat?
A brief on her background- Naina hails from a middle class family and got married at an early age into a middle class family and her husband too had a modest job.
I could not contain my surprise and asked her how come she managed such a professional set up when it costs a fortune? To this Naina replied that it had become possible due to the loan she availed from a PSU Bank which enabled her to buy all these expensive equipments required by this profession.
I thought of putting up more details for the benefit of all those aspiring women who want to turn into entrepreneurs.
Read on to know the details:Curiosity got the best of me and I started the process of collecting information from various sources. There is a bouquet of loan offering from various banks available not only to working professionals but also to women entrepreneurs both urban & rural who are seeking an opportunity to support their family irrespective of the strata of society they belong to.
Surprising is the fact that in India most women tend to go for joint loan with spouse/ approved family members, the ratio of single women availing loan is not something to write home about. Due to insufficient awareness on this subject not many women are walking in banks for availing loan for start-ups. This has resulted into closing down/withdrawal of many of such schemes by banks.
Though availing loan under these schemes is time consuming and involves extensive documentation, the process is simple which can be explained in 3 easy steps for understanding purpose:
1. Create a project plan (Basic Business Plan consisting of Nature of Business, Infrastructure Needs etc.)
2. Keep the required documents ready (Proof of Identity, Residence, Income etc)
3. Approach your preferred bank
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The loans are made available for various activities like setting businesses in SSI Units, Agriculture & Allied Activities, Small business like Florist, Bakery, Tailoring, Beauty Parlor, Crèche, Tuitions class, Travel Agency, Papad making, Ceramics, Handicrafts, Laundry, Canteen and Catering, Pickle and Masala Making and many more. The activities for which such loans are given are very exhaustive and cover many business activities.
Special Additional benefits of subsidy on capital are provided under all such schemes launched by PSU Banks as well as under specific various Government Sponsored Programmes like Central Bank’s Cent Kalyani, Vijaya Bank's Assistance to Rural Women in Non-Farm Development (ARWIND) & Assistance For Marketing Of Non Farm Products Of Rural Women (MAHIMA), PNB's PNB Mahila Udyam Nidhi Scheme, PNB Mahila Samridhi Yojna, Scheme For Financing Creches, PNB Kalyani Card Scheme and PNB Mahila Sashaktikaran Abhiyan etc.
A women has to be 18 years old and tenure of such loans varies from 3 year to seven years. Applicant has to contribute some margin money as well but for the loan upto Rs. 25000 no margin money (own funds) is required. For loans above Rs. 25000 the margin money requirement varies from 15% to 25% of the loan amount. These loans are given at concessional rate of interest ranging from 13% to 15% .
The Processing Fees charged for such loans ranges from 0.5% to 2%
While borrowing money, the borrower has to provide Collateral Security ( By way of assignment of LIC Policy (SV)/ Bank’s own T.D./ N.S.C./ K.V.P., RBI Relief Bond etc.). There is provision of moratorium period of 3 to 6 months depending on the Cash flow / project viability report. Meaning that EMI for such loans will start on completion of the period of moratorium granted by the bank.
Few banks have even clubbed benefits of availing business purpose loans along with saving accounts widely known as power accounts for women. (E.g. Corp Mahila Power Scheme- a Savings-cum-loan Product for women)
Some PSU lenders in collaboration with NGOs have even launched Self Help Groups/Trusts which provide basic developmental assistance to women who wish to acquire the essential knowledge and skill sets required for starting their own business. These groups provide training on how to start and manage a business, in planning, marketing, it also provides pointers on how to reduce costs and to achieve break even within a stipulated time frame. (E.g. Canara Bank's CED, IOB's The Sakthi IOB Chidambaram Chettiar Memorial Trust)
So all you women who have that spark in you, ignite it by way of turning entrepreneur and move on the path of self-reliance.
It takes only one step to start the journey!
ApnaPaisa is India's leading Online market place for financial products such as
loans, credit cards and
insurance plans. Author can be reached at
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