• UCO Bank Mahila Pragati Dhara

    UCO Bank was founded in 1943, it is a commercial bank and a Government of India Undertaking. The board of directors of UCO Bank consists of government representatives from Government of India and Reserve Bank of India.

    UCO Mahila Pragati Dhara was specifically designed to empower and encourage women entrepreneurs. This scheme offers hassle free financial assistance for undertaking production, manufacturing or service activities under Micro and Small Enterprise Sector.

    Types of Facilities offered for UCO Mahila Pragati Dhara

    UCO Bank offers Term loan and cash credit to the women entrepreneurs to financially assist them.

    Purpose of UCO Mahila Pragati Dhara

    The UCO Mahila Pragati Dhara is offered to women entrepreneurs to:

    • Set up new unit or enterprise or for expansion or renovation of the unit.
    • If it is a manufacturing unit, then loan is offered to acquire a fixed asset or to meet working capital requirement. Fixed assets can be plant, machinery, equipment, vehicle, furniture and fixtures, tools, etc.
    • If women entrepreneurs are involved in a service industry, then they will be financially assisted to start a new unit for modernisation, expansion or for renovation for providing their services.

    Features and Benefits of UCO Bank Mahila Pragati Dhara

    The features and benefits of UCO Mahila Pragati Dhara are as follows:

    1. Financial assistance is offered to women run enterprises.
    2. The category covered is the Micro and Small Enterprise.
    3. The prospective borrower must have working experience in the intended line of business.
    4. Term loan is offered on need base and working capital requirement offered is 20% of the projected realistic annual turnover.
    5. There is no margin for loan up to Rs.2 lakh. If the loan limit is above Rs.2 lakh and up to Rs.25 lakh, the margin is 15% of the loan amount.
    6. Primary security is the asset created out of the loan amount.
    7. Term loan is offered for a period of 5 – 7 years based on the life of the asset.
    8. Cash credit is offered for a period of 12 months and it should be in a continuing nature and is subject to renewal every year.

    The category that the banks lends funds to are:

    Particulars Micro enterprises Small enterprises
    Investment in Plant and Machinery of manufacturing units Up to Rs.25 lakh Above Rs.25 lakh and up to Rs.5 crore
    Investment in equipment of service sector units Up to Rs.10 lakh Above Rs.10 lakh and up to Rs.2 crore

    Eligibility to avail UCO Mahila Pragati Dhara loan

    • Any women who is running a unit individually or with a group of women can apply for the UCO Mahila Pragati Dhara loan.
    • If a women is running a partnership firm with other women or men, loan facility is applicable only if she has a major share.
    • Private limited companies where major shares are held by women.
    • Major share of closely held Public Limited companies are held by women.
    • Women entrepreneurs who are involved in production and manufacturing process and service units.
    • The borrower must not be a defaulter to any bank or financial institute.
    • Preference is given to entrepreneurs trained in RSETIs or other approved training institutes.

    Loan amount

    The minimum loan amount offered is Rs.2 lakh and the maximum loan amount offered under UCO Mahila Pragati Dhara is Rs.25 lakh.

    UBO Bank Mahila Pragati Dhara Interest rate

    For loans up to Rs.25 lakh, the interest is 10.70% per annum.

    Documents required for UCO Mahila Pragati Dhara

    The following documents have to be submitted along with your duly filled UCO Mahila Pragati Dhara loan application form:

    • One passport size photograph
    • Proof of identity that is voter’s ID, passport, Driving license, PAN card, signature and photo identification by local authority bodies.
    • Proof of residence that is recent telephone bills, electricity bills, property tax, passport, voter’s ID and certificate from by local authority body.
    • Business address proof.
    • If business premises is rented, rent agreement must be provided.
    • If loan is above Rs.2 lakh, projected balance sheet, profit and loss statement for the next two years must be submitted.
    • If loan is above Rs.2 lakh, last 3 years balance and profit and loss statement must be submitted.
    • Clearance from pollution control board.
    • Details of the plant or machinery that is to be acquired. The detail must contain price of the product and the supplier’s name.
    • License from the competent authority if it is applicable for the business activity.
    • Asset and liability statement.
    • Partnership deed and registration certificate of the partnership.
    • If it is limited company, then Memorandum and Articles of Association and Board Resolution must be submitted.

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