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OPTIMiSM 2017 June 2017 . II (6) Vol. II (6)

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Message from DMDs

Shri Ajay Kumar Kapur Shri Manoj Mittal Dy. Managing Director Dy. Managing Director

Dear All,

The World Bank in its World Economic Prospects report (June 2017) has stated that, economic activity in India is underpinned by favorable monsoon rains that supported agriculture and rural consumption, an increase in infrastructure spending and robust government consumption. Also the government spending on capital formation has increased and partially offset soft private investment. The domestic demand is expected to remain strong, supported by ongoing policy reforms, especially the introduction of the nationwide Goods and Services Tax (GST) with effect from July 01, 2017. The proposed GST regime is also supposed to create a conducive environment for MSMEs and small business owners. Recognizing the potential of MSME sector for the nations development, the Government of India, through its various agencies, has taken many key steps to strengthen the sector and promote innovation and capacity building. The recent act of GoI enlarging the definition of Start-ups that inter-alia includes increase in gestation period upto seven years from five years, relaxation in the norms for tax benefits and inclusion of employment generation potential, is expected to boost job creation, entrepreneurship and innovation in the MSME sector.

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Govt. of India initiatives for women entrepreneurs: MUDRA: In order to encourage women entrepreneurs, MUDRA has women enterprise funding programme under which the financing

banks / MFIs may consider extending additional facilities, including interest reduction on their loan. At present, MUDRA extends a reduction of 25 bps in its interest rates to MFIs / NBFCs, who are providing loans to women entrepreneurs.

Stand-up India (SUI): The scheme aims to facilitate bank loans between `10 lakh and `1 crore to at least one SC/ST borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise. The enterprise may be in manufacturing, services or trading sector. In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be held by either an SC / ST or women entrepreneurs.

CGTMSE: The scheme aims to promote women entrepreneurship by way of providing higher guarantee coverage of 80% of the amount

(subject to a max. of `40 lakh) for loans upto `50 lakhs. Concession in Annual Guarantee Fee is also provided to women entrepreneurs. (Sources: Websites of various banks. For further details please contact respective bank branches.)

SPECIAL LOAN SCHEMES FOR WOMEN

In the middle of difficulty lies opportunity. Albert Einstein

Scheme Purpose Amount Rate of Interest Other features

STREE SHAKTI PACKAGE (by State Bank of India)

To support entrepreneurship among women by providing certain concessions.

Need based The interest rate will be lowered by 0.5% in case the loan exceeds `2 lakh.

No security is required for loans up to `5 lakh in case of tiny sector units.

The margin will be lowered by 5% for others.

CENT KALYANI (by Central Bank of India)

To encourage women entrepreneurs to start new project or expand / modernise the existing unit. The scheme is aimed to meet capital expenditure & also meet day-to-day expenditure.

Max. `100 lakh

Loan up to `10 Lacs - MCLR + 0.25%

Loan above `10 Lacs and up to `100 Lacs - MCLR + 0.50%

Additional Interest concession of 0.25% if account is rated by external agency.

Margin 20% No collateral security /

third party guarantee required as advance is covered by Guarantee cover of CGTMSE.

UNION NARI SHAKTI (by Union Bank of India)

To finance all women-owned and managed Micro and Small Enterprises engaged in manufacture or production, processing or preservation of goods or enterprises engaged in providing or rendering of services.

Min. `2 lakh; Max. `100 lakh.

Micro MCLR plus (1.15% to 1.9%)

Small MCLR plus (1.4% to 2.4%)

Margin - Upto `10 Lakh 5%; Above `10 Lakh 15%.

Customers under sole banking arrangement only.

PNB VANITA (Punjab National Bank)

For setting up new unit / enterprise or for expansion / modernization of existing unit; for acquisition of fixed assets (Plant & Machinery, equipment, furniture & fixtures); and to meet working capital needs.

Composite loan upto `25,000/-.

Preference will be given to women belonging to ST/ SC/ BPL category.

Margin Nil.

SYNDMAHILASHAKTHI (Syndicate Bank)

Term Loan: (i) To set up a unit/ expansion /upgradation Cash Credit: To meet working capital requirements for existing or new units.

Upto `5 crore.

Upto `10 lakh Base rate Above `10.00 lakh - 0.25% concession on applicable rate of interest.

Margin 15% No processing and

documentation charges.

UDYOGINI (Saraswat Bank)

To take care of the financial requirements of women entrepreneurs allowing them to concentrate on their business growth.

Need based Micro & Small PLR 0.5% Medium - PLR

Margin: Micro Nil Small & medium - 10%-

15%lower then the Banks norm

UNITED MAHILA UDHYAMI YOJANA (United Bank of India)

To encourage and empower women entrepreneurs by offering hassle free financial assistance at liberal and concessional terms for undertaking production, manufacturing or service related economic activities.

Max. `10 lakh.

As per Banks extant guidelines Margin: Nil for limit upto

`25,000/-; 10% for limit above Rs.

25,000 and upto `5.00 lakh;

15% for loan above `5.00 lakh.

IOB SME MAHILA PLUS (Indian Overseas Bank)

Term Loan for fixed Assets and Cash Credit for Working Capital.

Composite loan upto `2 crores.

Base Rate +1.25 to 1.75%

PSB UDYOGINI SCHEME FOR WOMEN ENTREPRENEURS (Punjab & Sindh Bank)

To encourage the women entrepreneurs to avail the loans on liberal terms and exclusive catering of credit under Direct agriculture activities, Tiny SSI sector, Business enterprises, Retail traders, Professional and Self employed etc.

Need based As per rate applicable to MSMEs. No margin upto `25,000/-

Margin of 15-25% above `25,000/- depending upon the purpose and quantum of loan.

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Can you imagine a guide available to you for shaping your dream or a banking service available at your fingertip? This has been made possible by SIDBI through its digital solutions enabling MSME aspirants to realize their entrepreneurial dreams. Some of the digital initiatives which are making the lives of MSMEs smoother are highlighted below:

Startupmitra Portal - The main objective of the www.sidbistartupmitra.in portal is to bring all the stakeholders in the start-up eco-system namely start-up entrepreneurs, incubators, investors (angel investors/ Venture Capital Funds), advisors, Industry Bodies and banks together through the electronic platform as well as to serve as a single window for providing solutions to various needs of the start-ups. The platform facilitates entrepreneurs to engage with incubators, investors, mentors and other stakeholders besides providing information on various government schemes for the benefits of start-up.

Standup Mitra Portal The portal www.standupmitra.in facilitates bank loan between `10 lakh to `1 crore to at least one SC/ST and one women borrower per bank branch for setting up Greenfield enterprises in manufacturing, services or trading activities. The portal acts as a virtual market place with eased business leads, standardized application with entire annexures downloadable in one go, enable applicant to revisit and submit edited applications, reduced reporting/M&E involvements and so on. The maximum rate of interest under the scheme is capped at MCLR + 3% plus tenure premium.

Udyamimitra Portal Under the www.udyamimitra.in portal, financial assistance is provided for all enterprise loans including MUDRA loans upto `10 lakh and MSME loans for amount beyond `10 lakh and upto `1 crore for existing and new enterprises. portal has been set up to leverage IT architecture of Stand-up Mitra portal which aims at instilling ease of access to MSMEs financial and nonfinancial service needs. The Portal, as a virtual market place endeavours to provide 'End to End' solutions not only for credit delivery but also for the host of credit-plus services by way of hand holding support, application tracking, multiple interface with stakeholders (i.e. banks, service providers, applicants)

MUDRA Mitra App MUDRA Mitra is a mobile phone application providing information regarding Micro Units Development and Refinance Agency Ltd. (MUDRA), a wholly owned subsidiary of SIDBI and its various products/schemes. It will guide a loan seeker to approach a banker in availing MUDRA loan under Pradhan Mantri Mudra Yojana (PMMY). Users can also access useful loan related material including sample loan application forms.

SIDBI MITRA App As part of its digital initiatives, SIDBI developed new mobile app. SIDBI Mitra to facilitate mobility in viewing customer accounts, providing direct channel to customers to interact with the Relationship Managers (RM) and raising other service requests, etc.

SmallB website SIDBI-developed website www.smallB.in is a virtual mentor and handholding forum for the potential / budding and even existing entreprene