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Tata Capital > Blog > Loan for Business > All You Need to Know about Cent Kalyani Scheme

Loan for Business

All You Need to Know about Cent Kalyani Scheme

All You Need to Know about Cent Kalyani Scheme

In modern business, women have demonstrated remarkable resilience and determination in pursuing their entrepreneurial aspirations. However, access to capital, resources, and support networks remains a significant hurdle for many women looking to start or expand their businesses. In fact, only 20% of women-led companies receive Venture Capital (VC) funding.

Recognising the importance of addressing these challenges, the government has launched the Cent Kalyani Scheme through its Startup India initiative.

In this blog post, we'll cover all of the Cent Kalyani Scheme details, including its objectives, eligibility criteria, application process, and benefits of the scheme.

What is the Cent Kalyani Scheme?

The Cent Kalyani Scheme is a flagship initiative under Startup India designed to encourage and support women entrepreneurs in India. It offers a comprehensive range of financial assistance and support services tailored to women-owned businesses' unique needs.

Whether women entrepreneurs want to start a new venture or expand their existing enterprises, the Cent Kalyani Scheme provides them with the necessary tools and resources to achieve their goals.

Cent Kalyani Scheme: objectives

The objectives of the Cent Kalyani Scheme revolve around empowering women entrepreneurs and fostering their growth in the business landscape. The key objectives of the scheme are to:

1. Provide financial support and business loans for women entrepreneurs.

2. Encourage women to venture into entrepreneurship.

3. Promote women-owned MSMEs.

Cent Kalyani Scheme: eligibility criteria

The Cent Kalyani Scheme is open to new and existing women entrepreneurs who own micro or small enterprises as defined by the MSME Act 2006. Eligible businesses span various sectors, including manufacturing, services, and professional fields.

The scheme encompasses various industries, from traditional sectors such as handloom weaving and handicrafts to modern professions like healthcare, finance, and technology.

In addition to businesses, the scheme also extends its support to professionals and self-employed women, including doctors, chartered accountants, engineers, artists, and artisans. Small businesses such as daycare services, salons, boutiques, tailoring services, and mobile restaurants are also eligible to apply. However, the scheme does not cover retail trade, education institutes, and self-help groups.

Cent Kalyani Scheme: application process

Follow the steps given below to apply for the Cent Kalyani scheme:

Step 1: Obtain the application form

1. Visit the Central Bank of India's official website.

2. Navigate to the application forms section and locate the Cent Kalyani Scheme application form.

4. Download the application form.

Step 2: Complete the application form

1. Fill in all the required details accurately and completely.

2. Provide information about your business or profession, financial status, and the purpose of the loan or financial assistance sought.

3. Double-check the form to ensure all sections are filled out correctly.

Step 3: Gather the required documents for business loan

1. Collect all the necessary documents to support your application.

2. These may include identity, address, income, and business proof.

3. Ensure that the documents are up-to-date and in the required format.

Step 4: Visit the nearest Central Bank of India branch

1. Take the completed application form and the required documents to the nearest Central Bank of India branch.

2. Inform the bank staff that you are applying for the Cent Kalyani Scheme.

Step 5: Submit the application and documents

1. Submit the completed application form and the required documents to the bank officials.

2. Provide any additional information or clarification if requested by the bank.

Step 6: Application verification

1. Bank officials will verify the information in the Cent Kalyani Scheme application form and review the submitted documents.

2. They may conduct further checks to assess the applicant's eligibility.

Step 7: Approval process

1. Once the application is successfully processed and verified, it will be forwarded for approval.

2. The bank's approval committee will review the application based on the eligibility criteria and other factors.

Step 8: Disbursement of the loan amount

1. If the application is approved, the Cent Kalyani loan amount will be disbursed to the entrepreneur's account.

2. The disbursed funds can be used for the intended purpose, such as starting a new business venture or expanding an existing enterprise.

Step 9: Follow-up and communication

1. Stay in touch with the bank officials for any updates or further instructions related to the application process.

2. Maintain regular communication to address any queries or concerns.

Benefits of the Cent Kalyani scheme

Here are some of the scheme's key benefits:

1. Term loan: Fund-based working capital facility – Overdraft/Cash Credit

2. Non-fund-based working capital: Letter of Credit/Letter of Guarantee, etc.

3. Maximum financing amount: Rs. 100 Lacs

4. Margin: 20%

5. Concession in Cent Kalyani Scheme interest rate:

Loan amountInterest rateAdditional concessionTerm loan tenure premium
Up to Rs. 10 LakhsMCLR + 0.25%0.25% if rated by an external agency0.20 premium for 1-3 years, 0.40 premium for 3-7 years
Above Rs. 10 Lakhs up to Rs. 100 LakhsMCLR + 0.50%0.25% if rated by an external agency0.20 premium for 1-3 years, 0.40 premium for 3-7 years

Note: MCLR: Marginal Cost of Funds based on the Lending Rate

6. Primary security: Charge on stock, receivables, plant and machinery, and other unencumbered business assets.

7. Collateral security: No collateral security is required as advance is covered by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) guarantee.

8. Third-party guarantee: Not necessary as advance is covered by CGTMSE guarantee.

CGTMSE coverage: Guarantee cover provided by CGTMSE (The bank pays the CGTMSE fee for the first year).

9. Processing fee: Nil

10. Insurance: Comprehensive insurance of stock, machinery, equipment, etc., with a bank clause.

Final thoughts

As women entrepreneurs continue to make strides in various industries and sectors, the Cent Kalyani Scheme aims to level the playing field and create equal opportunities for them in the business world. In conclusion, the Cent Kalyani Scheme provides women entrepreneurs with financial assistance, guidance, and resources.

Ready to make your mark in the business world? Take advantage of Tata Capital's business loans and unleash your full potential as an entrepreneur. Benefit from Tata Capital's unwavering support and industry expertise to achieve your business goals!

To know more, visit the Tata Capital website or download the Tata Capital App today!

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