Union Nari Shakti Scheme: Empowering Women Entrepreneurs with Financial Support

The Union Nari Shakti Scheme, introduced by Union Bank, aims to encourage women entrepreneurs by offering financial support for their business ventures. Through the STP Scheme under Union Nari Shakti, eligible women between the ages of 21 and 65 can avail loans ranging up to Rs. 10 lakhs at reduced interest rates. This initiative is targeted towards women-owned and managed MSMEs, as well as Women Self Help Groups (SHGs) with a valid UDYAM Registration Certificate.

Eligibility Criteria:

• Women-owned and managed MSMEs with a valid UDYAM Registration Number.
  
  
• In partnerships/companies, women must hold a minimum of 51% share capital.
  
  
• Women Self Help Groups (SHGs) with a valid Udyam Registration Certificate.
  
  

Purpose of the Loan:
The scheme provides Term Loans for activities such as purchasing, constructing, renovating factories, offices, shops, godowns, or acquiring plant & machinery. It also offers Cash Credit for fulfilling working capital requirements.

Quantum of Finance:

• Minimum: Rs. 2.00 Lakhs
  
  
• Maximum: No ceiling, based on the financial needs of the MSMEs.
  
  
• SHGs can avail a maximum of Rs. 20.00 Lakhs.
  
  

Margin and Processing Charges:

• Minimum 5% margin for loans up to Rs. 100.00 Lakhs.
  
  
• Minimum 15% margin for loans above Rs. 100.00 Lakhs.
  
  
• Processing charges are nil for exposures up to Rs. 200 Lakhs, with a 50% concession for higher amounts.
  
  

Security Requirements:

• Primary security: All assets financed by the bank are to be charged in favor of the bank through hypothecation or mortgage.
  
  
• Collateral: Loans up to Rs. 5.00 Crores can be covered under CGTMSE without collateral. Loans above Rs. 5.00 Crores may require collateral coverage based on the scheme's requirements.
  
  

Rate of Interest:
The scheme offers concessional rates of interest to eligible applicants, enhancing affordability and sustainability for women entrepreneurs.

The Union Nari Shakti Scheme stands as a cornerstone initiative to foster economic empowerment among women, promoting inclusivity and growth in the MSME sector. For more details and application procedures, eligible applicants are encouraged to contact Union Bank directly.