Syndicate Bank provides a programme named “Synd Mahila Shakthi Scheme” that promotes the growth of women entrepreneurs. Through lending facilities, the bank provides financial help to women entrepreneurs working in small businesses, professional or self-employment, and retail commerce through this initiative. This bank seeks to pave the way for women’s economic empowerment by offering business loans for working capital or company development. The Synd Mahila Shakthi Scheme is examined in depth in this article.
Loan Information for the Synd Mahila Shakthi Scheme
The following are the terms of the Synd Mahila Shakthi Scheme business loan, interest rates, charges, fees, and commissions:
- The loan amount granted under the plan is up to a maximum of Rs. 5 crores at a concessional rate of interest to women entrepreneurs to establish a new business or enhance an existing one.
- For loans up to Rs. 10 lakhs, the base rate (currently 10.25 per cent) will be applied, and no collateral security will be required.
- Loans in excess of Rs. 10 lakhs will be granted to women entrepreneurs with a 0.25 per cent discount on the relevant rate of interest, and there will be no processing fees or paperwork requirements.
All Micro Enterprises will receive a 0.50 per cent interest rate reduction for a rapid payback to be refunded at the moment the loan account is closed. As a result, the ultimate rate of interest after concession would never be lower than the base rate.
The Goal of the Synd Mahila Shakthi Scheme
The plan provides a cash credit facility to cover the working capital requirements of existing or new units. Term financing facility to establish a unit/business, either manufacturing or service firm, for individuals who qualify under the Micro, Small, and Medium Enterprises Act (MSME). It is mostly given to update current units through the acquisition of machinery, equipment, computers, cars, and so on.
Synd Mahila Shakthi Scheme Features and Benefits
The following are some of the primary characteristics and benefits of applying for a business loan under the Synd Mahila Shakthi Scheme with Syndicate Bank:
- The women entrepreneurs proposed a 0.25 per cent loan rate reduction.
- A term loan and working capital combined.
- The working capital must be renewed annually, and the interest must be paid on a monthly basis.
- The maximum payback length is adjustable, ranging from 7 to 10 years, including a repayment vacation or moratorium period.
- It also provides candidates with a free credit card.
- Beneficiaries can get free skill development training at SIRD or RUDSETI.
- Beneficiaries can also be sponsored by NSIC, DIC, NGOs, and so forth.
- Beneficiaries will also receive ATM cards, Mobile Banking, SMS Banking, Internet Banking, the Synd Suraksha and SyndArogya schemes, and other services.
Criteria for Eligibility
- Any woman entrepreneur who meets the following conditions can apply for the Synd Mahila Shakthi Scheme.
- Any woman with a technical educational background, such as a diploma or a graduate degree, has knowledge or expertise in a certain field or company.
- Women entrepreneurs that have expertise and experience in their field. (In the event of self-employment, a minimum of two years of company continuity is required.)
- Those who have a 50 per cent financial stake in a sole proprietorship are more concerned about women.
- Partnership firms with a focus on women outperform those with a 50 per cent financial stake.
- Companies having a woman as Managing Director/a Director in a prominent position, both public and private.
- The Cooperative Society
- What is the Synd Mahila Shakti Scheme?
The Synd Mahila Shakti Scheme is a financial inclusion scheme launched by Syndicate Bank to support the empowerment of women entrepreneurs in India. The scheme aims to provide affordable financial assistance to women-owned businesses and to promote entrepreneurship among women.
- What are the benefits of the scheme?
The scheme offers loans up to Rs. 5 lakh without the need for collateral security at concessional interest rates of 1% below the card rate. This makes it easier for women entrepreneurs to access finance at a lower cost. The loan can be used for a variety of purposes, including setting up a new business, expanding an existing business, purchasing equipment or machinery, and working capital requirements.
- Who is eligible to apply for the scheme?
Women entrepreneurs who have a business plan approved by a competent authority are eligible to apply for the scheme. The scheme is open to women entrepreneurs across different regions and communities in India.
- How can I apply for the scheme?
To apply for the scheme, you need to visit the nearest branch of Syndicate Bank (now merged with Canara Bank) and submit your business plan along with other required documents. The bank officials will guide you through the application process and provide you with all the necessary information.
- What are the documents required for the application?
The documents required for the application may vary depending on the purpose of the loan. However, some of the common documents required include proof of identity, proof of address, proof of business, and financial statements of the business.
- What is the repayment period for the loan?
The repayment period for the loan can range from 3 to 7 years, depending on the purpose of the loan. The bank officials will provide you with more information on the repayment period and other terms and conditions of the loan.
- How long does it take to process the loan application?
The processing time for the loan application may vary depending on the complexity of the application and the volume of applications being processed by the bank. However, the bank officials will provide you with an estimated time frame for the processing of your application.
- What is the maximum loan amount that can be availed under the scheme?
The maximum loan amount that can be availed under the scheme is Rs. 5 lakh. However, the loan amount sanctioned may vary based on the purpose of the loan, the financial position of the business, and other factors.
- Is there any processing fee or prepayment penalty associated with the loan?
The bank may charge a nominal processing fee for the loan application. However, there is no prepayment penalty for the loan, which means that the borrower can repay the loan before the end of the repayment period without any additional charges.
- What happens if I default on the loan repayment?
In case of default on the loan repayment, the bank may take legal action to recover the outstanding amount, which may include the auction of assets and property. Therefore, it is important to ensure timely repayment of the loan to avoid any legal complications.
- Can I apply for the loan online?
As the scheme is offered by Canara Bank (which has merged with Syndicate Bank), it is likely that the loan application can be made online through the bank’s website. However, it is recommended to check with the bank officials for more information on the online application process.
- Can I apply for the scheme if I already have an existing loan with another bank?
Yes, you can apply for the scheme even if you have an existing loan with another bank. However, you will need to provide details of your existing loan and other financial commitments as part of the loan application process.