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All about Bhartiya Mahila Bank business loan

All about Bhartiya Mahila Bank business loan

The Bhartiya Mahila Bank business loan was introduced in 2013 as a tool to advance women-owned businesses in the country. Its goals included increasing access to the workforce, increasing financial independence, and paving the way for economic empowerment for women.

In this article, we will discuss the Mahila business loan, how it works, and what documents are needed to apply for it.

What is the Mahila Bank Business Loan?

The Bhartiya Mahila Bank (BMB) is a public-sector financial institution established in 2013. The former Prime Minister of India, Dr. Manmohan Singh, inaugurated it as India’s first all-women financial institution.

The BMB focuses primarily on women’s financial requirements and empowerment. The organisation seeks to promote women’s empowerment through financial inclusion, providing a safe and supportive environment for growth and services to grow their businesses. It offers attractive rates of interest, services aimed towards women customers and employees, and unique CSR initiatives.

Among these offerings is the Bhartiya Mahila Bank Business loan. The BMB’s business loans are meant to meet the need for working capital, business expansion, and more. It offers attractive interest rates and collateral-free loans of up to Rs. 1 crore.

Types of Bhartiya Mahila Bank Business Loans

In 2000, the Government of India established the CGTMSE (Credit Guarantee Funds Trust for Micro and Small Enterprises), offering credit guarantees to financial institutions. Under the CGTMSE scheme, the following Bhartiya Mahila Business bank loans are available:

  1. BMB Shringaar: These include loans for beauty parlours, salons, and spas.
  1. BMB Annapurna Loan: This includes loans for food catering businesses.
  1. BMB SME Easy: This includes loans for small and medium-level enterprises.
  1. BMB Parvarish: This loan provides aid for women looking to finance daycare centres.

Loan Types/CategoriesBMB ShringaarBMB AnnapurnaBMB SME EasyBMB Parvarish
AgeBetween 20 to 60 yearsBetween 18 to 60 yearsDependent on the profile requirement of the SMEBetween 21 to 55 years
Repayment tenure7 years3 years7 years5 years
CollateralNoneNoneNone (Up to 1 crore)None

Also, read – Mahila Udyam Nidhi Scheme

Documents Needed for Bhartiya Mahila Bank Business Loan

It is essential to keep the necessary documents ready to obtain any loan. This streamlines the process and makes it quicker and easier. To apply for a Bhartiya Mahila Business bank loan, the following documents are required:

  1. For salaried workers

– Identity proof: This can include your Adhaar card, voter’s ID, driving license, or passport.

– Address proof: Documents like telephone, electricity, and property tax bills can be presented.

– Proof of income: Documents for proof of income include the account assigned for salary, salary slips over the last 3 months, bank statements from the last 6 months, or the latest Form 16.

  1. For self-employed workers

– Identity proof: This can include your Adhaar Card, voter’s ID, driving license, or a valid passport.

– Address proof: Documents such as property leases, business address proof, sales deeds, or property tax bills can be presented.

– Proof of income: Profit and loss statements, bank statements from the last 6 months, ITR from the previous 2 years, current account statements, and debt information are required.

– Additional documents: Additional documents for the self-employed individuals include certificates of employment or continuation of organisation (such as previous year’s appointment letters or the previous two years’ sales tax or ITR), documents of assets (like property assigning letter, certificate of proof of payment for the property, document stating sold property, sales deed documents, and property tax paying reports).

Also, read – Government Schemes for Women Entrepreneurs in India

How to Apply for a Bhartiya Mahila Bank Business Loan

To apply for the Mahila business loan, the following steps are required:

  1. Find your nearest BMB branch

After ensuring you meet the business and age criteria to apply for the Bhartiya Mahila Business bank loans, find the nearest BMB branches and prepare your documents.

  1. Get an application form

Obtain an application form from the BMB and fill it out in the prescribed format. You will need to fill in the necessary credentials correctly. The basic details required include:

– The name and address of your enterprise and the date of establishment

– Caste certificates

– Contact information like your mobile numbers and email address

– PAN card and/or Adhaar card

– The constitution of your business (for example, a proprietorship, partnership, Pvt. Ltd, or co-op).

– Loan details, bank and credit details, and details or any collaterals offered.

– The name, address, and PAN card details of the proprietors, partners, or directors of the company.

  1. Submitting the application form

After completing the business loan forms, you must submit them to the financial institution officials along with the necessary documents.

  1. Attach the necessary documents

The BMB will also require special KYC proof for verification along with the application form. This could include your PAN card and Adhaar card.

Also, read – List Of Businesses That Come Under the MSME Sector

Advantages of Bhartiya Mahila Bank Business Loans

The BMB was a significant government initiative. It has helped countless women (customers and employees) nationwide pursue their financial and entrepreneurial goals. Its unique structure provided a supportive environment for Indian women and helped establish several businesses across the country. In 2017, the BMB was integrated into the State Bank of India, which continues to focus on financially empowering women business owners. The Mahila business loan comes with several benefits for women-owned businesses. These include:

  1. Collateral-free loans (up to 1 crore)
  1. Competitive interest rates
  1. Flexible repayment options

4.           Combinations of working capital and term loans

Bhartiya Mahila Bank Loan Interest Rates & Fees

For women entrepreneurs, the Bharatiya Mahila Bank business loan offers tailored financial solutions, and understanding its interest rates and fees helps in making informed decisions.

  • Interest Rates Offered: Lender business loans feature interest rates from 10.15 per cent to 13.65 per cent per annum, making them competitive for women-led ventures seeking capital for growth and operations.
  • Loan Amount Range : You can secure funds from small retail requirements up to ₹5 crore for service enterprises and up to ₹20 crore for manufacturing units, providing flexibility across business sizes. 
  • Tenure and Repayment: Tenures extend up to seven years, helping align repayment schedules with business cash flows and long-term planning.
  • Collateral Conditions: Loans up to ₹1 crore may be available without collateral under CGTMSE support, reducing upfront security barriers.
  • Fees and Charges: Processing fees are charged as per lender norms, so it is important to confirm these costs early in the application to assess the total cost of credit.
  • Applicability: The Bharatiya Mahila bank business loan caters specifically to women entrepreneurs, with products designed for different business needs and growth stages. Fincash
  • Benchmark and Regulation: Interest rates and lending terms are guided by RBI and set at the discretion of the Lender, ensuring compliance with national financial standards. 

Comparing Bhartiya Mahila Bank Loans with Other Women-Focused Loans

Women-centred business financing in India includes government-linked and private schemes that aim to lower barriers to credit and empower women-led enterprises.

  1. BMB Loan Features


Lender’s Bharatiya Mahila bank business loan provides a concession of 0.25 per cent on interest rates for women entrepreneurs, flexible repayment up to seven years and collateral-free loans up to ₹1 crore under CGTMSE cover. Loan amounts can go up to ₹20 crore for manufacturing enterprises and ₹5 crore for services, making it suitable for scaling established businesses. 

  1. Stree Shakti Package


The Stree Shakti Package from a major public sector Lender offers interest rate reductions of about 0.5 per cent for loans over ₹2 lakh, encouraging business ownership where women hold at least 50 per cent equity.

  1. Shakti Scheme from Bank of Baroda


Another women-focused loan gives a broad sector reach including agriculture, retail and services with interest rebates and no processing fee for smaller amounts, which can be attractive for early-stage ventures. 

  1. PNB and SIDBI Schemes


The Mahila Udyam Nidhi and similar programmes offer soft loans up to ₹10 lakh with extended tenures and lower repayment pressure, suitable for small startups and micro enterprises.

Conclusion

Finding the right financial institution is essential if you want to pursue your entrepreneurial goals. With the proper professional guidance, you can streamline the process of availing of your loan and find options that best suit your needs.

Tata Capital offers online business loans at competitive interest rates, flexible loan tenures, minimum documentation, and no collateral requirement. Our 5-step application process allows for a quick and easy online application, helping you set up your business as soon as possible.

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FAQs

Can men apply for a Bhartiya Mahila Bank business loan?

No, men cannot apply for this loan, as Bharatiya Mahila Bank was created exclusively to empower women entrepreneurs, with all business lending schemes designed solely for women-owned and women-led enterprises in India.

What is the maximum loan amount available under the BMB business loan scheme?

 

The Bharatiya Mahila Bank business loan offers funding up to ₹20 crore for manufacturing enterprises and up to ₹5 crore for service businesses, depending on project viability and lender assessment.

How long is the repayment tenure for BMB business loans?

 

Repayment tenures usually extend up to seven years, allowing women entrepreneurs to manage cash flows efficiently while balancing growth investments and regular business operating expenses.

Are there any collateral requirements for BMB business loans?

 

Collateral may not be required for loans up to ₹1 crore when covered under CGTMSE guidelines, making the Mahila bank loan more accessible for eligible women-owned small businesses.

What is the processing fee for a Bhartiya Mahila Bank business loan?

 

Processing fees are charged as per lender norms and may vary based on loan size, credit profile and scheme terms, so applicants should confirm costs before final approval.

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