Bank of Baroda launches Mahila Swavalamban scheme for women entrepreneurs. How it stacks up against top loan options | Mint

Bank of Baroda has announced two new loan schemes for Micro, Small, and Medium Enterprises (MSMEs), focusing on assisting women entrepreneurs. The loan schemes are Baroda Mahila Swavalamban and Baroda Smart OD.

Baroda Mahila Swavalamban offers loans for women-led enterprises with interest rates starting at 9.15%. Businesses can avail of loans ranging from ₹20 lakh to ₹7.5 crore, with collateral-free options available for loans up to ₹5 crore through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) guarantee. The CGTMSE is a government scheme to make collateral free loans easily accessible. 

 The scheme provides a 50% rebate on processing charges and allows repayment over a maximum tenure of 120 months, including a moratorium period. It is open to UDYAM and GST-registered enterprises that are at least 51% owned by women.

UDYAM registration is a free and online process designed for Micro, Small, and Medium Enterprises (MSMEs) in India.

Baroda Smart OD is targeted at GST-registered businesses, providing a digital overdraft facility. Loan amounts range from ₹0.50 lakh to ₹25 lakh, with interest rates starting at 10%. The scheme requires minimal documentation, tenure is capped at 12 months, and rebates on processing fees are available.

Comparing Other Business Loan Schemes for Women 

Other financial institutions offer a range of loan options for women entrepreneurs:

Cent Kalyani (Central Bank of India): Offers loans at interest rates between 8.70% and 8.95%, with no processing fees or collateral requirements. Loan amounts can go up to ₹1 crore.

Mudra Loan under PMMY: The scheme provides loans of up to ₹10 lakh, with concessional interest rates and collateral-free terms. It is available under three categories—Shishu, Kishor, and Tarun—and supports both new and existing businesses.

ICICI Bank’s Self-Help Group-Bank Linkage Programme: Offers collateral-free loans of up to ₹10 lakh for self-help groups, with a maximum tenure of 36 months.

Stand-Up India: Targets Greenfield enterprises, offering loans from ₹10 lakh to ₹1 crore with repayment periods of up to seven years.

PNB Mahila Udyami: Provides loans up to ₹10 lakh with discounted interest rates, flexible repayment terms, and a focus on promoting women-led ventures.