New Delhi: The State Bank of India (SBI) has launched a collateral-free loan scheme, ‘Asmita,’ for women entrepreneurs. The scheme, introduced before International Women’s Day, offers low-interest loans to encourage more women to take up business ventures.
Low Borrowing Rates, No Collateral Requirement
The introduction of ‘Asmita’ follows a recent TransUnion Cibil report that highlights the low share of business-related loans among women. The report states that only 3% of women’s borrowings are for business purposes, while a significant 42% go toward personal loans, consumer durable loans, or home ownership. Additionally, 38% of women borrow against gold.
By offering easier access to business financing, SBI aims to bridge this gap and encourage more women-led enterprises. The bank has designed the loan with a simplified digital application process to ensure quicker approvals.
Digital Process for MSMEs
SBI Chairman C.S. Setty stated that the loan will support women-led micro, small, and medium enterprises (MSMEs) with faster access to credit. Managing Director Vinay Tonse described the initiative as a mix of “technological innovation and social engineering” aimed at making financing more inclusive.
New Debit Card for Women
Alongside ‘Asmita,’ SBI also introduced the ‘Nari Shakti’ platinum debit card, powered by RuPay. The card is designed specifically for women, though the bank has not disclosed details on additional benefits or features.
By rolling out these initiatives, SBI appears to be aligning with broader financial inclusion efforts, particularly for women-led businesses. However, its impact on actual borrowing trends remains to be seen.
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