Syndicate Bank is targeting to reach out to over 20,000 women entrpreneurs across the country through a new scheme 'SyndMahilaShakti', an initiative for women empowerment.
The bank is observing 'SyndMahilaShakthi' week currently till December 20 across the country and aims to extend loans to over 20,000 women entrepreneurs to take up various self-employment activities under micro, small and medium enterprises, a press release said.
Since December 15, the bank has sanctioned loans worth Rs 68 crore to about 5,415 women entrepreneurs till Wednesday, officials said.
Concessional interest rates
Under the scheme, the bank is extending finance up to Rs 5 crore per woman beneficiaries at concessional interest rates.
The rate of interest for loans up to Rs 10 lakh is at the base rate of 10.25 per cent, while for loans exceeding Rs 10 lakh, a concession of 0.25 per cent is being provided on applicable interest rate.
The borrower has to contribute 15 per cent margin on the loan, while the processing and documentation charges are fully waived on these loans. No collateral security and no guarantee is insisted for loans up to Rs 10 lakh.
The beneficiaries can avail themselves of credit card facility without any admission fee and they can also avail themselves of various facilities such as instant global debit cards/ATM cards, SMS banking, mobile banking, Internet banking, any branch banking, SyndSuraksha insurance policy and SyndArogya health insurance cover, the statement said.
All micro enterprises will get a rebate of 0.5 per cent in rate of interest for prompt repayment to be reimbursed at the time of closing the loan account. The loans can be repaid in a maximum period of 7 to 10 years, including repayment holiday.
The bank shall be covering all eligible borrowers under Credit Guarantee Fund Trust for Micro and Small Enterprises scheme.
Eligible borrowers can also be sponsored by district industries centre, NGOs, women and child development department and self help groups, among others. The beneficiaries will be given free skill development training across the country, it said.