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SBI Stree Shakti Yojana Details: If you are a woman entrepreneur looking to start a new business or expand an existing one, the State Bank of India (SBI)—the country's largest public sector bank—offers an excellent scheme for you. The primary objective of SBI's 'Stree Shakti Yojana' is to empower women entrepreneurs by providing them with financial assistance.

Loans are available under this scheme on favorable terms for businesses in the manufacturing, trading, and service sectors. Additionally, women receive a special concession on interest rates.

Let us understand in simple terms how much loan can be availed under this SBI scheme, the extent of the interest rate concession, and the specific conditions involved.

How much loan can be availed?

Depending on business requirements and financial standing, women can secure a loan of up to ₹25 crore under this scheme.

Working Capital and Term Loan: This loan covers both day-to-day business expenses and the purchase of long-term assets or machinery.

Bank's Assessment: The final loan amount is determined by SBI based on an evaluation of the applicant's eligibility, business plan, and financial status.

Credit Rating: For loans exceeding ₹2 crore, the applicable interest rate may be linked to the applicant's credit rating.

Special 0.50% concession on interest rates

To encourage women entrepreneurs, SBI offers interest rate concessions under this scheme. Women receive a concession of up to 0.50% (50 basis points) on interest rates for loans up to ₹2 crore. This significantly reduces the cost of debt repayment for women-led businesses.

However, the final interest rate and other charges are determined according to SBI's prevailing norms; therefore, it is advisable to verify the exact rates at a nearby branch before availing the loan.

Annapurna and Shringar schemes to boost women-led businesses

Under its 'Stree Shakti' initiative, SBI also offers specialized loan schemes tailored to the specific needs of women across various business sectors. Under this initiative, the Annapurna Scheme provides financial assistance specifically to new or existing businesses involved in catering, restaurants, tiffin services, and the food sector.

On the other hand, the Shringar Scheme offers loans on favorable terms to women entrepreneurs in the beauty parlor, salon, and wellness sectors, enabling them to expand their businesses, purchase beauty equipment, and upgrade their infrastructure. Both schemes are designed to foster self-reliance and economic empowerment among women in their respective fields of expertise.

**Repayment and Margin Money Terms**

The loan repayment period depends on the size of the business and the type of loan. For term loans, the repayment tenure can range from 7 to 10 years. Depending on the loan amount, the bank may require a margin money contribution of 15% to 25%; this means the applicant must fund a portion of the total cost themselves, while the bank provides the remainder as a loan.

**Points to Consider Before Applying**

If you intend to apply for a loan under this scheme, ensure you have your business project report (DPR), KYC documents, financial records, and an accurate account of your available margin money ready. Before submitting an application, be sure to obtain details regarding interest rates, processing fees, and other service charges from the bank official.

Disclaimer: This content has been sourced and edited from Money Control. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.