Loans offered by Public Sector Banks to Women, Finance

AB Vanitha Vahan Scheme is mainly for Salaried women (permanently employed / professional and self-employed having an income proof). As per the name indicates this scheme is open exclusively to women for purchasing new four wheelers / two wheelers as well as on second sale. For purchasing four wheelers, income should be more than Rs.1,00,000 /- p.a, and for purchasing two wheelers, income should be more than Rs.60,000 /- p.a . 50% of the husband's salary will be taken for computing eligibility provided he is a co-obligant. Margin amount is 10% on road price.

Quantum of Finance for a New Vehicle is 90% on road price, which includes Invoice price, Life tax, Registration charges, Insurance and accessories, if any, worth Rs.5,000 /- or 3 years gross salary whichever is lower. For Second Sale, Four wheelers (not more than three years old); 60% of garage value or 3 years gross income whichever is lower.

Repayment of this scheme for four wheelers is between minimum 12 months and maximum 72 months (EMI) and for two wheelers is between minimum 12 months and maximum 60 months (EMI). Interest rate is as applicable on the date of loan with 0.50% concession in rate of interest for prompt payment. Co-obligation of husband or father or any third party is acceptable to the bank. Hypothecation of vehicle purchased is considered as security. Documents needed are Driving License, Proof of Income ie; (Salary Slip/ IT Returns/ Assessment Order, Proforma Invoice) and valuation certificate from reputed garage for second sale. No processing charges and administrative charges is applicable.

Purpose of Star Mahila Gold Loan Scheme is for purchase of Gold ornaments, preferably hallmarked, from reputed Jewellers and/or Gold coins of Bank of India. This scheme mainly target the group of Resident Indian Women, working or non working, between 18 year and 60 years of age. Working women ie; Women permanently employed in Central/State Govt./PSUs/ Scheduled Banks/Teachers of Government/ Aided Institutions or include professionals like Doctors/ CAs/Chartered Engineers etc., Non Working Women : Not having income proof, Spouse/other close relative who satisfy income criteria to join as co-borrower.

Applicant should get minimum 20 marks, under banks rating exercise, to be eligible for loan under this scheme. Quantum of Advance in Demand/ Term loan is 10 times of monthly net emoluments (take home salary of self / spouse, in case of non working women) and 50% of Gross Annual Income as per latest Income Tax Return for professional women i.e Minimum Rs.50000/- Maximum Rs.2 lakhs. 20% of the cost of Jewellery or Gold may be considered as Margin. Interest which effect from 01.04.09 is 1.75% below BPLR,presently 10.25% p.a., at monthly rests. Repayment of this loan may be made in maximum of 60 EMIs. However, repayment period should not exceed the age of 65 or retirement age of the borrower, whichever is earlier. Repayment can be made through salary deduction /post dated cheques.

Net take home pay (net of EMI ) minimum 50% of the gross income of the applicant/ spouse, in the case of non-working women. Liquid securities [NSC / KVP/ Insurance Policies-surrender value] are accepted as security for Loan over Rs.50,000/-. Proforma invoice required for a loan amount of Rs.1 lakhs and over. Disbursement should be done by DD/ Pay Order favoring the seller ( with the name of the Bank and Account Number). Stamped Receipt/ Invoice for the total cost of jewellery (i.e Loan Amount plus Margin ) to be obtained. Processing Charge for loans upto Rs.50,000 is Rs.500/- and above Rs.50,000 is 1.10% of the loan amount. Minimum Rs.500/-is charged as stamp charge for documents at actual, and loan agreement copy charges are also applicable.

Canara Bank

Name of the loan : Can Mahila

This was a loan to meet the financial needs of women such as any personal financial needs, such as to buy house hold articles, gold, jewellery, computers etc. But this scheme was discontinued with effect from 01.01.2009. For the existing customer interest rate may be 14.50%.

Central Bank of India

Name of the loan : Cent Kalyani

This is a scheme launched to benefit women entrepreneurs and women professionals. This scheme offer financial assistance for economic pursuits in Industry, Agricultural and Allied Activities, Business or Profession. The Bank with a network of branches spread throughout the country welcomes women entrepreneurs to avail financial assistance for pursuing vocations of their choice.

Karur Vysya Bank has introduced or offers installment loan to working women within the age of 18-50 yrs, permanently employed in Central/State Govt. offices, Public Sector undertakings, reputed Public & Pvt. Ltd companies, Teachers, Lecturers, Professors and employees of schools Colleges and Universities and other reputed institutions for purchase of gold / diamond ornaments / silver wares.

Minimum loan amount is Rs.10,000/- and maximum is Rs.1 Lakh with 15% as margin. Interest rate with effect from 10th May 2009 is 14.00% p.a. Repayment of the loan may be settled with in 36 equated monthly installments. DPN/ Personal may be considered as primary security. Collateral security up to Rs.25,000/- is nil and above Rs.25,000/- shall be collaterally secured to the full extent; beyond Rs.25,000/- by way of NSCs/LIC policies (surrender value)/IVP/KVP or Term deposit of Karur Vysya Bank or the gold ornaments to be purchased.

Guarantee may be given by the husband of the borrower. In case husband is not there, guarantee from father or any other earning member of the family or third party guarantee should be obtained. In case of fully secured loans, the guarantee may be waived.

UCO Bank

Name of the loan : Nari Sakthi

This scheme is to provide financial assistance to salaried women. Concession is offered on interest and the repayment can be made in 5years in equated monthly installments. This is a modified version of UCO Cash scheme. Applicant should be either a permanent employee or should have completed 3 years of service. Minimum take-home pay should be 40% of gross salary after all deductions including EMI against this loan. Regular income other than Salary Income may also be reckoned for considering the eligible amount. Quantum of loan is 90% of the proposed expenditure or Rs.2 Lakhs whichever is lower. Additional loan amount may be allowed within the quantum ceiling to the existing borrower for the purpose the earlier loan was sanctioned. Loan will be on clean basis with two guarantors including that of Spouse/Nominee of PF/Gratuity. One guarantor other than spouse may be waived if additional liquid security is provided up to 40% of the loan amount. The rate of Interest is 12.50% p.a. The loan amount with interest is repayable in 60 equated monthly installments but one year before retirement. Service Charge 1% (Min. Rs.500/-) is also applicable.

United Bank of India brings a special loan scheme to cater to all personal financial needs of women who is either a salaried person or a self-employed/ professional. This Scheme is mainly for buying gold ornaments, diamonds, precious stones, purchase of consumer durables/ household goods etc. And also to meet the expenses of wedding, domestic trip and other personal expenses.

Women eligible for the scheme should be 18 years and above, maintain a Savings/ Current Deposit/ Term Deposit A/c with the Bank and fulfill the following criteria: Any working woman (service holder/ professional & self-employed person) with a minimum take home salary of Rs.5,000/- OR a house wife jointly with her husband/working son or daughter within the eligible limit of income.

Quantum of loan given is minimum Rs.0.10 lakhs and Maximum Rs.0.50 lakhs (may be extended upto Rs.1.00 Lakhs in deserving cases), subject to the condition that the total deductions shall not exceed 60% of borrower-customer’s gross salary. 5% of the cost of article to be purchased as a margin. Primary security is Hypothecation of the Article(s) to be purchased with the Loan. And collateral security i) For salaried - In case of an individual whose salary is disbursed through the branch no additional security is required. ii) Professional & Self-employed- the loan should be additionally secured by 30 to 50% of the loan amount by way of assignment of LIC Policy (SV)/ Bank’s own T.D./ N.S.C./ K.V.P., RBI Relief Bond etc. or personal guarantee of at least one person acceptable to the bank.

Rate of Interest with effect from 09.04.2007 is 14.00% p.a. i.e. BPLR + 0.75% at present. Concession of 0.25% for a group of borrowers (minimum 10) from single organization shall be allowed provided the employer undertakes to deduct EMI from salary and remit the same to the financing branch or the accounts are maintained under United Salary Payment Scheme. Interest rate revised with effect from 01.04.2009 is BPLR + 0.75% i.e. 13.00% p. a. Loan amount may be repaid with in maximum period of 36 months by equated monthly installments, the loan shall be liquidated within the age of 60 years. 0.5% of the loan amount may be considered as a processing fee.

Vijaya Bank

Name of the loan: Assistance to Rural Women in Non-Farm Development (ARWIND)

The scheme of Assistance to Rural Women in Non-Farm Development (ARWIND) is being introduced mainly to support their economic activities in Non-Farm sector on a cluster or group basis by rural women. This scheme has two components- Credit Components, Promotional Components.

Under Credit component, a voluntary agency having minimum 3 years of proven track record in assisting women’s groups, women’s development corporation set up by the Central or State governments, KVIC/KVIBs or any institutions under the KVIC/KVIB fold, any other registered institution including cooperatives, trusts and corporations set up by Central or State governments for the purpose may evolve a scheme to organize rural women’s groups for undertaking any productive activity in the non-farm sector and assist them in setting up their own units and /or provide such other backward or forward linkages including training as are considered necessary for improving viability of individual or group enterprises.

The loan assistance under this scheme to the individuals, would not normally exceed Rs.50000/- per borrower or say Rs.10 lakhs for a group activity involving 20 rural women. As per Reserve Bank of India guidelines, for loans upto Rs.25000/- per borrower, no margin money or collateral security or third party guarantee will be insisted upon by the financing banks except hypothecation of assets created out of the loans. The rate of interest chargeable to the beneficiaries or banks will be those as may be specially by the Reserve Bank of India / NABARD from time to time. Repayable may be subject to the cash flow of the scheme, the loan repayment period will be between 3 to 10 years with a moratorium of 6 to 12 months.

Name of the loan: Assistance For Marketing Of Non Farm Products Of Rural Women (MAHIMA)

Assistance For Marketing Of Non Farm Products Of Rural Women (MAHIMA) scheme envisages providing loan and also assistance in grant to the Registered Voluntary Agencies (VA), Non-Governmental Organisations (NGOs) and other promotional organisations engaged in marketing the products of rural women.

Voluntary Agencies (VA), Non-Governmental Organisations and other promotional organisations including co-operatives, federations of marketing organisations engaged in the business of marketing of women’s products are eligible to be covered under the scheme. The organisations should have been working for at least 3 years with proven track record and experience in production or marketing of rural products and should satisfy the norms of the financing banks and NABARD prescribed from time to time.

NABARD will provide 100% refinance for the bank loans and maximum refinance is restricted to Rs.10 lakh only. The quantum of assistance by way of promotional grant would normally be restricted to Rs.5000/- per women entrepreneur to be covered by the agency concerned or up to 25% of the minimum sales turnover of Rs.10 lakh envisaged to be achieved within 3 years, whichever is lower. In other words would mean that the promotional grant assistance would normally be limited to Rs.2.50 lakhs per agency, in case the agency is able to cover a minimum of 50 women individually or in groups, with a turnover of Rs.10 lakhs in order to make it operationally viable, at least, over a period of 3 years.