SBI launches collateral free low interest loans for women entrepreneurs

The State Bank of India (SBI) has introduced a dedicated loan product called 'Asmita' aimed at supporting women entrepreneurs. Launched just before International Women's Day, this initiative offers collateral-free loans at low interest rates specifically designed for women.

The introduction of 'Asmita' comes shortly after TransUnion Cibil reported that women show a low preference for borrowing for business purposes, often opting for loans related to personal consumption instead.

According to the credit information company, only 3 percent of women's borrowings were for business-related needs, while a significant 42 percent were used for personal finance products, such as personal loans, consumer durable loans, and home ownership. Additionally, 38 percent of women borrowed against gold.

The bank's chairman CS Setty said the newly launched product will provide faster and easier finance to women-led micro, small and medium enterprise units through a digital and self-initiated process.

MD Vinay Tonse called the new offering a blend of technological innovation and social engineering. The state-run bank also launched the 'Nari Shakti' platinum debit card powered by RuPay, which is designed exclusively for women.