The Bhartiya Mahila Bank business loan was introduced in 2013 as a tool to advance women-owned businesses in the country. Its goals included increasing access to the workforce, increasing financial independence, and paving the way for economic empowerment for women.
In this article, we will discuss the Mahila business loan, how it works, and what documents are needed to apply for it.
What is the Mahila Bank Business Loan?
The Bhartiya Mahila Bank (BMB) is a public-sector financial institution established in 2013. The former Prime Minister of India, Dr. Manmohan Singh, inaugurated it as India’s first all-women financial institution.
The BMB focuses primarily on women’s financial requirements and empowerment. The organisation seeks to promote women’s empowerment through financial inclusion, providing a safe and supportive environment for growth and services to grow their businesses. It offers attractive rates of interest, services aimed towards women customers and employees, and unique CSR initiatives.
Among these offerings is the Bhartiya Mahila Bank Business loan. The BMB’s business loans are meant to meet the need for working capital, business expansion, and more. It offers attractive interest rates and collateral-free loans of up to Rs. 1 crore.
What are the Different Types of Mahila Business Loans?
In 2000, the Government of India established the CGTMSE (Credit Guarantee Funds Trust for Micro and Small Enterprises), offering credit guarantees to financial institutions. Under the CGTMSE scheme, the following Bhartiya Mahila Business bank loans are available:
1. BMB Shringaar: These include loans for beauty parlours, salons, and spas.
2. BMB Annapurna Loan: This includes loans for food catering businesses.
3. BMB SME Easy: This includes loans for small and medium-level enterprises.
4. BMB Parvarish: This loan provides aid for women looking to finance daycare centres.
Loan Types/Categories
BMB Shringaar
BMB Annapurna
BMB SME Easy
BMB Parvarish
Age
Between 20 to 60 years
Between 18 to 60 years
Dependent on the profile requirement of the SME
Between 21 to 55 years
Repayment tenure
7 years
3 years
7 years
5 years
Collateral
None
None
None (Up to 1 crore)
None
What Documents are Required to Apply for a Mahila Business loan?
It is essential to keep the necessary documents ready to obtain any loan. This streamlines the process and makes it quicker and easier. To apply for a Bhartiya Mahila Business bank loan, the following documents are required:
1. For salaried workers
– Identity proof: This can include your Adhaar card, voter’s ID, driving license, or passport.
– Address proof: Documents like telephone, electricity, and property tax bills can be presented.
– Proof of income: Documents for proof of income include the account assigned for salary, salary slips over the last 3 months, bank statements from the last 6 months, or the latest Form 16.
2. For self-employed workers
– Identity proof: This can include your Adhaar Card, voter’s ID, driving license, or a valid passport.
– Address proof: Documents such as property leases, business address proof, sales deeds, or property tax bills can be presented.
– Proof of income: Profit and loss statements, bank statements from the last 6 months, ITR from the previous 2 years, current account statements, and debt information are required.
– Additional documents: Additional documents for the self-employed individuals include certificates of employment or continuation of organisation (such as previous year’s appointment letters or the previous two years’ sales tax or ITR), documents of assets (like property assigning letter, certificate of proof of payment for the property, document stating sold property, sales deed documents, and property tax paying reports).
What are the Steps to Apply for the Bhartiya Mahila Business Bank Loan?
To apply for the Mahila business loan, the following steps are required:
1. Find your nearest BMB branch
After ensuring you meet the business and age criteria to apply for the Bhartiya Mahila Business bank loans, find the nearest BMB branches and prepare your documents.
2. Get an application form
Obtain an application form from the BMB and fill it out in the prescribed format. You will need to fill in the necessary credentials correctly. The basic details required include:
– The name and address of your enterprise and the date of establishment
– Caste certificates
– Contact information like your mobile numbers and email address
– PAN card and/or Adhaar card
– The constitution of your business (for example, a proprietorship, partnership, Pvt. Ltd, or co-op).
– Loan details, bank and credit details, and details or any collaterals offered.
– The name, address, and PAN card details of the proprietors, partners, or directors of the company.
3. Submitting the application form
After completing the business loan forms, you must submit them to the financial institution officials along with the necessary documents.
4. Attach the necessary documents
The BMB will also require special KYC proof for verification along with the application form. This could include your PAN card and Adhaar card.
What are the Benefits of the Bhartiya Mahila Business Bank Loan?
The BMB was a significant government initiative. It has helped countless women (customers and employees) nationwide pursue their financial and entrepreneurial goals. Its unique structure provided a supportive environment for Indian women and helped establish several businesses across the country. In 2017, the BMB was integrated into the State Bank of India, which continues to focus on financially empowering women business owners. The Mahila business loan comes with several benefits for women-owned businesses. These include:
1. Collateral-free loans (up to 1 crore)
2. Competitive interest rates
3. Flexible repayment options
4. Combinations of working capital and term loans
Wrapping up
Finding the right financial institution is essential if you want to pursue your entrepreneurial goals. With the proper professional guidance, you can streamline the process of availing of your loan and find options that best suit your needs.
Tata Capital offersonline business loans at competitive interest rates, flexible loan tenures, minimum documentation, and no collateral requirement. Our 5-step application process allows for a quick and easy online application, helping you set up your business as soon as possible.
20 November 2024
5 mins read
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