SBI is offering loans of up to ₹2 crore to women; they will also benefit from interest rate concessions..

Women can start their own businesses through the State Bank of India's (SBI) Stree Shakti scheme. This scheme covers a wide range of business activities, including those in the trade and service sectors. Additionally, there are specialized schemes like 'Annapurna' for food-related businesses and 'Shringar' for ventures such as beauty parlors.

Eligible women entrepreneurs can also avail of interest rate concessions on loans of up to ₹2 crore. Here are the details of the scheme.

If you are a woman planning to start a new business or expand an existing one, SBI's Stree Shakti scheme could be beneficial for you. The scheme aims to provide easy financial assistance to women for business purposes. Loans are available to women operating in various sectors, including manufacturing, trading, and services.

Under this scheme, women can obtain loans of up to ₹25 crore, depending on their requirements. The loan covers both working capital—funds needed for day-to-day business operations—and term loans. However, the loan amount depends on the nature of the business, specific needs, and the bank's assessment. The loan is finalized after the bank evaluates the business's status and the applicant's eligibility. For larger businesses, interest rates on loans exceeding ₹2 crore may be determined based on credit ratings.

A key feature of the scheme is the concession on interest rates; women can receive an interest rate reduction of up to 0.50% on loans of up to ₹2 crore. This can lower the overall cost of the loan and assist in business operations. However, the final interest rates and terms will be determined according to the bank's policies. Applicants should obtain full details regarding applicable interest rates, charges, and other terms and conditions from the bank before availing of the loan.

As part of the Stree Shakti initiative, SBI runs specific schemes tailored to different types of women-led businesses. For instance, the 'Annapurna' scheme is useful for women involved in food-related businesses, such as catering and restaurants, while the 'Shringar' scheme caters to the specific needs of businesses like beauty parlors. This allows women to access financial assistance tailored to the nature of their business.

Repayment tenure varies depending on the business size and the type of loan.

For term loans, a tenure of 7 to 10 years may be available, whereas working capital facilities are determined based on the business's cash flow and requirements. Banks also consider 'margin money'—the borrower's own contribution—which typically ranges from 15% to 25% of the loan amount; applicants should assess their financial capacity beforehand.

Regarding eligibility, women entrepreneurs can also avail of credit guarantee support through the CGTMSE scheme.

This can provide relief from collateral requirements for certain loans. Available information indicates provisions for relaxing collateral norms for loans up to ₹1 crore in specific cases. However, this facility is not automatically granted to every applicant; the bank makes the decision based on eligibility criteria and scheme guidelines.

You can apply for the loan via the SBI website or at a bank branch. Branches often feature dedicated desks to assist women.

Additionally, benefits such as convenient application services, business advisory support, lower processing fees, and flexible repayment options are available.

Certain documents are required when applying for the loan. These include KYC documents (such as Aadhaar, PAN, or Voter ID), proof of residence, and a business plan or project report. For existing businesses, the bank may request financial records from the past three years, income tax returns, and bank statements for the last six months.

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