SBI launches collateral free low interest loans for women entrepreneurs
Launched just before International Women's Day, this initiative offers collateral-free loans at low interest rates specifically designed for women.
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.
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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.
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