United Mahila Udhyami Yojana

The Loan Provider - United Bank of India

The United Bank of India will be offering the loan to women entrepreneurs under the United Mahila Udhyami Yojana.The public lender has more than 1,400 branches across India and is one of the 14 banks that were nationalised on 19 July 1969. The bank is headquartered in Kolkata and has its major presence in Eastern India.

Who is eligible for loans under United Mahila Udhyami Yojana?

The following is the list of women entrepreneurs/enterprises that are eligible to avail loans under the United Mahila Udhyami Yojana:

1. Enterprises or women entrepreneurs who wish to establish new units or expand/renovate/modernise existing units for the delivery of various services such as beauty parlour, photocopying centre, tailoring, typing centre, cyber cafe, laundry and dry cleaning, cable TV networks, auto-repairing and servicing centre, STD/ISD booths, restaurant, canteen, creche, mobile repairing, training institutes, road transport operator, washing machine, computerised desktop publishing, electronic gadgets, etc. If it is an enterprise, the holding of women entrepreneurs should be equivalent to or more than 50%.
2. Women entrepreneurs involved in manufacturing and production process such as weavers, artisans, potters, craftsman, carpenters, etc. In the case of enterprises, the financial holding of women entrepreneurs should be equivalent to or more than 50%.

1. The below-given categories of entrepreneurs will be preferred during the sanction of loans:

• Cluster of artisans
• Entrepreneurs trained in R-SETIs or any other approved training institute
• Artisans who have teamed up to form self-help groups
• Artisans registered with Development Commissioner (Handicrafts)

Who cannot avail loans under the United Mahila Udhyami Yojana?

1. Beneficiaries under other schemes sponsored by the government
2. Direct trading activities (retail trade)

What categories of MSMEs are eligible for the scheme?

Microenterprises that have been registered under the MSME Act are eligible to avail benefits under the United Mahila Udhyami Yojana. However, the investment in machinery and plant should not exceed Rs.25 lakh for activities relating to manufacturing and production activity. For service-related activities, the investment in equipment should not be more than Rs.10 lakh.

How will the services be rendered?

The benefits available under the United Mahila Udhyami Yojana will be dispensed through all the branches of the United Bank of India.

What can the loans availed be used for?

The loans availed under the United Mahila Udhyami Yojana can be used to:

1. Fulfil working capital requirements
2. Acquire fixed assets including machinery, plant, equipment, tools, furniture, etc.

What is the maximum loan amount under the scheme?

Under the United Mahila Udhyami Yojana, the maximum loan that can be availed is Rs.10 lakh. There is no margin for up to Rs.25,000 but for loans above Rs.25,000 and less than Rs.5 lakh, the margin will be 10%. For loans above Rs.5 lakh, the margin will be 15%.

How can the loans be repaid?

Term loans with a duration of 3 years to 5 years can be repaid through monthly EMIs (Equated Monthly Instalments) and this will exclude moratorium based on asset life, subsistence requirement of the borrower, and income generation for the project.

For cash credit, the period of loan is 12 months and it should be of a continuous nature subject to renewal and review each year.

Is security required to avail a loan under the scheme?

No. As the loans would be covered under the Credit Guarantee Coverage of CGTMSE, no collateral security is required to avail a loan. The Annual Service Fee (ASF) and one-time Guarantee Fee (GF) will be borne by the United Bank of India.