Cent Kalyani Scheme

Table of Contents

The Central Bank of India has a programme to support and finance aspiring female entrepreneurs. The Cent Kalyani Scheme gives female entrepreneurs the ability to launch small- and medium-sized firms, upgrade their current operations, and tweak their organisational structures to suit the demands of the contemporary business environment. This might also be utilised to grow the present company by hiring more people, developing the production or service methods, and becoming an even more successful business owner.

This programme aims to empower women so they may launch new initiatives or grow current businesses. This programme offers support in the form of capital expenditures as well as day-to-day expenses. The Central Bank of India is the provider of this programme.

Cent Kalyani Scheme and Goals

The main goal of the Cent Kalyani Scheme is to promote female entrepreneurs working in cottage or small- and medium-sized businesses as the finest in the sector. This complies with the MSME Act, which the Indian government passed into law in 2006. The programme is primarily aimed at women who work in small-scale manufacturing and service-oriented home-based businesses.

This is the ideal plan for a female entrepreneur who is preparing to launch or has already established her own firm to gain traction in their specific sector.

The Scheme’s Objective

  1. The main goal of the programme is to aid in the establishment or growth of a firm in the MSME sector using a two-pronged approach:
  2. Capital expenditure: The purchase of one-time investment materials like machinery, equipment, and plant settings is included in the capital expenditure.
  3. Consumables, power, water, and any other expenditures incurred during regular business operations are included in running expenses.

Eligibility Criteria

The details of the Cent Kalyani Scheme’s qualifying requirements are shown below;

Below is a detailed description of the service provided by the Cent Kalyani Scheme:

  • Limit on Overdraft Cash Credit Working Capital
  • A loan for a specific period of time
  • Non-fund-based cap (for Working capital as well as term loan)

Documents Needed

The following is a list of the documentation needed for the Cent Kalyani Scheme:

  1. It is necessary to fulfil KYC standards, and names that change after marriage must be recorded.
  2. two-year historical balance sheet, as well as planned and forecasted balance sheets and other financial statements
  3. IBA-approved standard application form
  4. Hypothecation letter
  5. interest letter

The Targeted Sectors

The sectors that are primarily being targeted by this scheme are both the manufacturing and service industries, enlisted as follows,

  • Manufacturing
  1. Handlooms
  2. Food processing
  3. Textile industry
  4. Arts and crafts
  5. Cottage industry
  6. Home-based manufacturing industries
  • Service 
  1. Doctors
  2. Lawyers
  3. Engineers
  4. Dieticians
  5. Fashion designers
  6. Health and beauty clinics
  7. Beauticians; such as hair stylists, beauty parlour owners and bridal make-over industries
  8. Tailoring and boutique owners
  9. Transport operators
  10. Small businesses such as lunch-makers, snack shops, canteens and mobile restaurants
  11. Typing, photocopy shops, STD/ISD PCOs
  12. Libraries
  13. Daycare creches for children

Scheme Highlights & Benefits

The highest amount of finance is Rs. 100 lacs.

There is a reduction in the interest rate:

  • Loan up to Rs. 10 lacs at +0.25% MCLR MCLR + 0.50 percent for loans of more than Rs. 10 lacs but less than Rs. 100 lacs If the account is rated by an outside agency, an additional 0.25 percent interest concession will be given.
  • Processing costs are nothing.

Interest rate for the Cent Kalyani Scheme

Below is a detailed explanation of the Interest Rate for Cent Kalyani Scheme:

  • For loans under ten lakhs, the interest rate concession is MCLR (Marginal Cost of Funds based on Lending Rate) plus 0.25 percent of the loan amount.
  • Loans up to Rs. 100 lakhs and above: If the account is rated by an external agency, a 0.25 % additional interest rate concession will be offered. Marginal Cost of Funds based on Lending Rate (MCLR) with 0.50 percent of the loan amount.

Here is the information for the term loan tenure premium (including the moratorium):

  • 0.20 premiums for one year up to three years.
  • From three to seven years: 0.40 premium

Exclusions from the Scheme

Although it includes a wide range of MSME enterprises owned and operated by women, there are a few exceptions that are not covered by this programme. They consist of the following;

  • People who work in the retail industry, such as store proprietors and retail shop owners
  • Institutions for education and training, whether they are self-financing or receiving outside funding
  • Self-help organisations that receive funding from several other government programmes

Nature of the Services Offered

The programme provides flourishing people and novices to the business with a term loan fund-based working capital facility. These take the shape of;

  • Overdraft loans
  • Letters of credit
  • Cash credit
  • Non-fund-based working capital
  • Letter of guarantee

Margin and Loan Amount

The plan provides a maximum loan of 100 lacs, or 1 crore Indian rupees. This assumes a 20% profit margin for the company. Concessionary interest rates are available up to 10 lacs, and the minimum loan amount is 1 lac. This implies that the borrower must finance 20,000 INR of the 1 lac INR loan amount out of their own funds.

Collaterals and Security

There are several benefits and perks as per the MSME Act, 2006, depending upon the type and amount of money borrowed. The securities and collaterals are as follows;

  • Primary Collaterals: 
  1. Charges on stock
  2. Receivables
  3. Plant, Machinery, and Equipment
  4. Unencumbered assets that have been acquired 
  • Collateral Security: 
  1. The Cent Kalyani scheme is covered by CGTMSE (Credit Guarantee Scheme)
  2. The first-year fees for CGTMSE have to be paid to the bank

What is the Cent Kalyani Scheme’s maximum loan amount?

The Cent Kalyani Scheme allows for a maximum loan of one crore Indian rupees, or 100 lacs.

Financial Quantum

The highest amount of financing offered under the Cent Kalyani Scheme is Rs. 1 million.

Margin

According to the Cent Kalyani Scheme, the term loan is 25%.

Margin and Loan Amount

The plan provides a maximum loan of 100 lacs, or 1 crore Indian rupees. This assumes a 20% profit margin for the company. Concessionary interest rates are available up to 10 lacs, and the minimum loan amount is 1 lac. This implies that the borrower must finance 20,000 INR of the 1 lac INR loan amount out of their own funds.

Working Capital: On Demand

Loan Term: Seven years in total, including a moratorium of between six and twelve months.

What conditions apply to Cent Kalyani?

The Cent Kalyani will assess fees on any inventory, equipment, and receivables. Also included are equipment and unencumbered assets. There is no advance collateral security. There is no need for a third-party guarantee. Processing costs apply. The maximum loan term will be 7 years, with a moratorium period of between 6 and 12 months.

How do I apply for this Loan?

You could download the forms from the website to apply for the application, and along with supporting documents can apply at the nearest Central Bank of India branch.

Where to get a Business Loan for Women?

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These are the Documents Required  for the loans process and Types of Personal Loan