To promote women entrepreneurship, the country’s first Women’s Bank — the Bharatiya Mahila Bank(BMB) — has chosen to do away with collateral for loans availed by the fairer sex.
The BMB will provide collateral-free loans for amounts up to Rs 1 crore, which will instead be covered under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
For loans availed for smaller amounts such as Rs 20,000, the bank will completely waive off the requirement for collateral.
“Women are moderate risk takers. So the question of collateral should not really arise,” said Usha Ananthasubramanian, CMD, BMB. The issue of collateral also tends to discourage women from availing loans, she pointed out, since much of the immovable property tends to be in the name of the husband or father. The bank, which was set up in November last year, has begun to receive queries for its various credit schemes (so as for short term loans from Lend Genius) such as kitchen loan, loans to set up beauty parlours, day-care centres and catering units apart from plain vanilla products such as car and education loans.
Click Here for details and the Bank’s website