In today’s world, women are not just managing homes – they are also starting businesses, running companies, and becoming job creators. To support such women, the State Bank of India (SBI) has launched a new loan scheme called SBI Asmita SME Loan for Women Entrepreneurs.
This loan is specially designed to help women start or grow their business without worrying too much about money.
In this blog, we will cover everything in very simple words:
- What is SBI Asmita Loan?
- Who can apply for it?
- How much loan is available?
- What is the interest rate?
- Benefits and special features
- Required documents
- Why this loan is important for women
What is SBI Asmita Loan?
SBI Asmita Loan is a special business loan for women entrepreneurs.
The purpose is simple:
- To provide financial help to women who want to start or grow their business.
- To encourage more women to run MSMEs (Micro, Small, Medium Enterprises).
- To make women financially independent and strong.
Under this scheme, women can get a loan starting from ₹10 lakh up to ₹5 crore.
Why is this Loan Special for Women?
The Government of India and Public Sector Banks have been working on reforms to make banking easier and more supportive for women.
Some important facts:
- Around 20.5% MSMEs in India are owned by women.
- These MSMEs provide 18.73% of jobs in the country.
- Over 70% of informal micro-businesses are run by women.
This clearly shows that women are contributing a lot in the business world, but their biggest challenge is arranging money.
SBI introduced Asmita Loan to solve this problem.
Who Can Apply for SBI Asmita Loan? (Eligibility)
- Women-Owned Units:
- If you are a woman entrepreneur and hold 50% or more shareholding in your business, you can apply.
- If you are a woman entrepreneur and hold 50% or more shareholding in your business, you can apply.
- Types of Businesses Eligible:
- Proprietorship (individual business)
- Partnership Firms
- Private Limited Company
- Public Limited Company
- Proprietorship (individual business)
- MSME Registration Required:
- You must have a valid Udyam Registration Number (URN).
- Both new businesses (Greenfield) and existing ones (Brownfield) are eligible.
- You must have a valid Udyam Registration Number (URN).
- Loan Amount:
- Minimum: ₹10 lakh
- Maximum: ₹5 crore
- Minimum: ₹10 lakh
How Can You Use This Loan?
The SBI Asmita Loan is flexible. You can use it for different business needs:
- Working Capital – money for day-to-day operations.
- Buying new machinery or equipment.
- Business expansion or modernization.
- Improving layout or design for better productivity.
- Purchasing commercial vehicles.
- For self-employed professionals (like doctors, architects) to buy equipment.
- For any genuine business activity.
Key Loan Features and Terms
- Loan Types Available:
- Term Loan
- Working Capital Loan
- Overdraft Facility (OD)
- Non-Fund Based Facility
- Term Loan
- Repayment Period:
- Term Loan: Up to 7 years (including 6 months repayment holiday).
- Cash Credit: Renewal every year.
- Term Loan: Up to 7 years (including 6 months repayment holiday).
- Prepayment:
- You can repay early without any penalty.
- You can repay early without any penalty.
- Security (Collateral):
- Primary: Hypothecation of Stocks & Machinery.
- Additional Collateral: Not required (NIL).
- Personal Guarantee: From proprietor/partners/directors.
- Primary: Hypothecation of Stocks & Machinery.
- CGTMSE Cover:
- This loan comes under the Credit Guarantee Fund for MSMEs (CGTMSE) scheme.
- This gives protection to both bank and borrower.
- This loan comes under the Credit Guarantee Fund for MSMEs (CGTMSE) scheme.
Interest Rates (Very Important)
The interest rate depends on your business risk rating:
- For Existing Businesses (Brownfield):
- BRE 01–02: 8.40%
- BRE 03–05: 8.90%
- BRE 06: 9.40%
- BRE 01–02: 8.40%
- For New Businesses (Greenfield):
- CUE 01–03: 8.90%
- CUE 04–07: 9.40%
- CUE 08–10: 9.90%
- CUE 01–03: 8.90%
Simply put: If your business risk is low, interest will be lower.
Insurance Benefits (Extra Safety)
This loan also comes with free insurance coverage for women borrowers.
- Health Insurance (Mediclaim):
- ₹1 lakh to ₹3 lakh coverage.
- Covers hospitalization, surgery, emergency ambulance, etc.
- ₹1 lakh to ₹3 lakh coverage.
- Accident Insurance:
- ₹1 lakh to ₹20 lakh coverage.
- Covers accidental death, permanent disability, loss of sight/hearing, etc.
- ₹1 lakh to ₹20 lakh coverage.
The best part – SBI will pay the premium up to ₹3,500 per year.
Why Choose SBI Asmita Loan?
- Exclusively for women entrepreneurs.
- No extra collateral required.
- Low interest rates compared to private lenders.
- Free health and accident insurance.
- Suitable for both new and existing businesses.
- Backed by SBI – India’s largest and most trusted bank.
Required Documents
To apply, you need:
- Udyam Registration Certificate
- GST Registration (if applicable)
- KYC Documents (PAN, Aadhaar, Address proof)
- Business Project Report/Profile
- Last 2-3 years financial statements (for existing units)
- Bank Account Details
Other Government Schemes for Women
Along with SBI Asmita Loan, women can also benefit from other schemes:
- Stand Up India Scheme
- Mudra Yojana
- Skill Development Programs (Samarth Initiative)
- ZED Certification Scheme – women get 100% subsidy
These can be used together to maximize support.
The SBI Asmita Loan for Women Entrepreneurs is not just another loan. It is a big step towards women empowerment and Atmanirbhar Bharat (self-reliant India).
If you are a woman who dreams of starting or expanding a business, this loan can provide the financial strength you need. With loan amount up to ₹5 crore, no collateral, low interest, and free insurance, it is one of the best options available today.
To apply, visit your nearest SBI branch or the official SBI website.