Looking for a small business loan for women-run MSE businesses?
You have landed at the right place. This page contains all the information you will need on Union Bank of India’s business loan for Micro and Small Enterprises run by women.
Union Bank of India Nari Shakti Loan
This loan helps women running Micro and Small Enterprises fulfil their day-to-day as well as long-term business needs. The maximum loan amount sanctioned under this loan is Rs. 1 crore. This loan scheme is one of the bank’s initiatives to empower and encourage women to engage in income-generating activities.
Features of Nari Shakti Loan
Why this Loan?
- The Union Bank of India Nari Shakti Loan is meant for small businesses in the MSE sector run by women to finance their capital requirements
- All MSME businesses in the manufacturing, service and trading sectors where the management is controlled by women and partnerships where a majority of partners are women are eligible for this loan
- This is a collateral-free loan
Loan Amount
- The maximum loan amount is Rs. 1 crore
Interest
- Credit Risk Rating UBI 1/2/3: The interest rate for this loan is defined as the sum of Marginal Cost of Funds Based Lending Rate (MCLR) of Union Bank of India and Credit Risk Premium which depends on the credit risk rating of the borrower. Currently, the MCLR of Union Bank of India is 7.20% and Credit Risk Premium is 1.15% for micro enterprises and 1.40% for small enterprises. This means that the effective interest rate is 8.35% for micro enterprises and 8.60% for small enterprises
- Credit Risk Rating UBI 4/5: The interest rate for this loan is defined as the sum of Marginal Cost of Funds Based Lending Rate (MCLR) of Union Bank of India and Credit Risk Premium which depends on the credit risk rating of the borrower. Currently, the MCLR of Union Bank of India is 7.20% and Credit Risk Premium is 1.90% for micro enterprises and 2.40% for small enterprises. This means that the effective interest rate is 9.15% for micro enterprises and 9.60% for small enterprises
Repayment
- These loans need to be repaid in 7 years after the moratorium ends. The repayment moratorium for this loan can be up to 12 months
Security Needed
- The primary security for this loan is pledging of assets created out of the bank’s finance
- Union Bank of India asks for CGTMSE coverage for this loan
Eligibility
- Individuals, Proprietors, Partnership firms, LLPs and corporate bodies are eligible for this loan as long as the business is managed by women. In the case of partnerships, a majority of partners must be women and in the case of corporate bodies, the management must be controlled by women
Borrower Contribution to Total Cost (Margin Money)
- Union Bank of India charges anywhere from 5% to 15% of the total loan amount as margin
Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest.
Processing Charges
- There are no processing charges for this loan
Documents Needed for Individuals
- Loan Application Form duly filled and signed by the applicant and co-applicant, if any
- Two Passport Size Photographs of applicant and co-applicant
- Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
- Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
- Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Income/Banking Proof: Last 6 months Bank Account Statement of applicant and co-applicant, Loan Statement of Running Loans, Latest Closed Loan NOC, Net Worth of the applicant and co-applicant
- Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
Documents Needed for Proprietorship and Partnership Firms
- Loan Application Form duly filled and signed
- Partnership Deed and Partnership Registration Certificate
- ID Proof of the Firm: Firm PAN Card or PAN Issuing Letter
- Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Income Proof: CMA Data and Project Report, Debtors and Creditors Certificate, GST Return, Last 3 years ITR of applicant and co-applicant, Audited or CA Certified Computation of Income/Trading Account/Profit and Loss Account/Balance Sheet, Annual Audit Report and Tax Audit Report if audited, Form 16A if applicable, Net Worth of applicants, co-applicants and guarantors
- Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
- Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
- Other Relevant Documents: Partnership’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
Documents Needed for Private Limited and Public Limited Companies
- Application Form duly filled and signed
- Company ID Proof: Company’s PAN Card
- Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Business Proof: AOA and MOA, Company Incorporation Certificate, Business Commencement Certificate, Board Resolution, CA/CS verified Share Holding Pattern, ROC Annual Return, DIN Certificate, List of Directors on Company Letter Head, GST Number, Form 32 in case of Director Change
- Income Proof: CMA Data and Project Report, Last 3 Years ITR Acknowledgement copy of Company and all Directors, Last 3 Years Annual Credit Report or Tax Audit Report with Article 3CB, Article 2D, Article 3CD, TDS Certificate/Form 16A, Net Worth Certificate
- Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
- Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
- Other Relevant Documents: Company’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
Reference Facts:
- Union Bank of India Website: www.unionbankofindia.co.in and www.unionbankonline.co.in (net banking)
- Headquarters: Mumbai, Maharashtra
- Call Centre Toll-Free Number: 1800 2222 44, 1800 208 2244