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Synd Mahila Shakthi Scheme

Synd Mahila Shakthi Scheme

Synd Mahila Shakthi Scheme

Syndicate Bank has a scheme called “Synd Mahila Shakthi Scheme” to promote women’s entrepreneurship development. Under this scheme, the bank grants financial assistance to women entrepreneurs for those who are engaged in small business, professional or self-employed and retail trade through credit facilities. This bank aims to set a path towards the economic empowerment of women by providing business loans to meet the requirement of working capital or for business expansion. In this article, we look at the Synd Mahila Shakthi Scheme in detail. To know about Women Entrepreneurs Platform

Synd Mahila Shakthi Scheme Loan Details

The following are the details of Synd Mahila Shakthi Scheme business loan Interests, charges, fees and Commissions:

  • To start up with the new business or to upgrade the existing business, the loan amount offered under the scheme is up to the maximum of Rs. 5 crores at a concessional rate of interest to the women entrepreneurs.
  • The base rate (at present 10.25%) will be applied for the loans up to the amount of Rs. 10 lakhs, and there is no collateral security will be insisted upon.
  • For the loans offered above Rs. 10 lakhs with the concession of 0.25% on the applicable rate of interest will be offered to the women entrepreneurs, and there are no processing charges, and documentation will be levied from the applicants.

Rate of Interest

  • All Micro Enterprises will get a deduction of 0.50% in the rate of interest for a quick repayment to be reimbursed at the time of stopping the loan account. Therefore, the final rate of interest after concession would not be below the base rate in any case.

Purpose of Synd Mahila Shakthi Scheme

Under the scheme, the cash credit facility is offered to meet the requirements of working capital for the existing or new units. Term loan facility to set up a unit/business either Manufacturing Enterprises or service enterprise those who are qualified under the Micro, Small and Medium Enterprises (MSME). It is offered mainly to upgrade existing units by the purchase of machinery, equipment, computers, vehicles etc.

Features and Benefits of Synd Mahila Shakthi Scheme

The below following are some of the main features and benefits of applying Synd Mahila Shakthi Scheme for a business loan with Syndicate Bank:

  • The women entrepreneurs offered with the concession of 0.25% in interest rate.
  • A combo of term loan and working capital.
  • The working capital has to be renewed annually, and the interest to be serviced monthly.
  • The maximum repayment tenure is flexible as it can be lasting up to 7 to 10 years, including repayment holiday or moratorium period.

Other Features

  • It also offers free Credit Card to the applicants
  • The beneficiaries can undergo training for skill development in SIRD or RUDSETI at free of cost.
  • The list of beneficiaries can also be sponsored by NSIC, DIC, NGO etc.
  • The beneficiaries will also be provided with ATM cards, Mobile Banking, SMS Banking, Internet Banking, Synd Suraksha and SyndArogya scheme.

Eligibility Criteria

Synd Mahila Shakthi Scheme can be applied by any women entrepreneur who satisfies the below following criteria.

  • Any women with Technical Educational Background such as Diploma or Graduate having the knowledge or experience in the line of activity or business.
  • Women entrepreneurs along with the knowledge and experience in the line of business. (In case of self-employed, minimum of 2 years of business continuity)
  • Individuals
  • Sole Proprietor concern with the women leads those who have 50% of financial holding.
  • Partnership Firms concern with women leads those who have 50% of financial holding.
  • Public and Private Limited Companies with a woman as Managing Director/a Director in a key position.
  • Co-operative Society

Documents Required for Synd Mahila Shakthi Scheme

The below listed are the documents that need to be furnished at the time of applying Synd Mahila Shakthi Scheme for a business loan:

  • Identity Proof: PAN Card, Aadhar Card, Driving License, Voter ID Card Proprietor, partner of Director (if a company), etc.
  • Address Proof: Aadhar Card, Legal Passport, Utility bill, Property tax bill, etc.
  • Documents regarding firm/shop/manufacturing unit registartion.
  • Registration certificate of the firm under MSME.
  • 6 months Salary account bank statement
  • Copies of sales-tax return filing documents.
  • Copies of income tax-return filing documents.
  • Proof of Employment/Business Continuity
  • Salaried: Form 16 or Appointment letter, dated 2 years or an earlier period
  • Self-employed: ITR or Sales/Service Tax registration certificate, dated 2 years or an earlier period.

Loans covered under CGMSE

The Syndicate Bank also assists businesses in availing loans under government schemes such as CGMSE. The below following are the business loans that are covered under the CGMSE

  • Hypothecation of equipment, machinery, vehicle and stock purchased out of Bank finance.
  • Primary security or mortgage of property and building associated with the business would be obtained.
  • There is no collateral security and or third party guarantee would be obtained.

Synd Mahila Shakthi Scheme Application Procedure

The applicants have to follow the below offline procedure to apply for the Synd Mahila Shakthi Scheme in the Syndicate bank.

Approach the Branch

Step 1: Approach the nearest Syndicate Bank Branch in your locality for applying for a business loan under Synd Mahila Shakthi Scheme.

Application Form

Step 2: Application forms are available in the bank and have to fill out the business loan application form of Synd Mahila Shakthi Scheme in a prescribed format.

Fill in the Right Credentials

Step 3: Fill the application form with appropriate details without any mistakes. Provide the given following details in the application form.

    • Enterprise Name and Address
    • PAN Card/ Aadhaar Card
    • Phone/Mobile number
    • E-mail address
    • Details of collateral security offered
    • Name, address and PAN details of proprietors/partners/directors of the company
    • Banking and existing credit details

Submit the Application Form

Step 4: Submit the business loan form in the prescribed format to the concerned bank official along with all the supporting certificates mentioned above.

Attach Required Documents

Step 5: On Submission, attach the specified KYC proofs along with the business loan application form.

Note: Please carry originals of all relevant KYC documents such as PAN, Aadhaar, etc. for verification purposes.

Also read about, Udyogini Scheme for Women Entrepreneurship Saranya – Self Employment Scheme for Women UCO Mahila Pragati Dhara (UMPD) Loan for Women Entrepreneurs

Post by Sinduja Shankar

IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. We have since helped start and operate tens of thousands of businesses by offering a range of business services. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.

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