Cent Kalyani Scheme, Objectives, Interest Rates, Fees, Key Takeaways

A scheme to encourage and finance upcoming female entrepreneurs is a scheme by the Central Bank of India. The Cent Kalyani Yojana offers a chance for female entrepreneurs to come up with small and medium-scale businesses or modernize their existing businesses and nuance their setups as per the requirements of the modern-day business world.

What is the Cent Kalyani Scheme?

The Cent Kalyani Yojana is a government initiative aimed at promoting entrepreneurship among women by providing financial assistance and support for starting and managing small businesses. This is in accordance with the MSME Act, as enacted by the Government of India in 2006.

The scheme is primarily directed at women employed in the manufacturing and service-oriented home-based and small-scale industry. Also women entrepreneurs who are planning to for finances, microloans are the best option.

Apply for MSME Loan

Objectives Of Cent Kalyani Scheme

The Cent Kalyani Scheme is a special financial product designed by the Central Bank of India to support women entrepreneurs. Below is a table summarizing its key details:

FeatureDetails
ObjectiveTo promote and support women entrepreneurs by providing financial assistance for business ventures.
EligibilityWomen entrepreneurs engaged in manufacturing, services, or trade activities, including retail trade.
Loan TypeTerm Loan and Working Capital Facility.
Loan AmountUp to ₹100 lakh (₹1 crore).
Margin RequirementVaries by case (up to 25%).
Interest RateLinked to the MCLR, with possible concessions for women entrepreneurs.
Collateral RequirementNo collateral required as the loan is covered under the Cent Kalyani Scheme.
Repayment TenureUp to 7 years, including a moratorium period if applicable.
Processing FeeNo processing fee is charged under this scheme.
Purpose of LoanBusiness expansion, working capital needs, purchase of machinery, or business-related infrastructure.
Target BeneficiariesWomen engaged in entrepreneurship, professionals, and self-employed individuals.
Special Benefits– Simplified application process. – Encourages economic independence for women.

Documents Required For Cent Kalyani Scheme

CategoryDocuments
Identity DocumentsVoter ID, Passport, Driving License, PAN Card, KYC Documents
ResidentialAddress proof, Telephone Bill, Property, Tax Receipt, Electricity Bill, Voter’s ID Card
Income ProofBalance Sheet, Profit & Loss, Financial Documents
Business ProofBusiness Profile, Letter of Interest,

Also Read – What is CGTMSE Scheme?

Cent Kalyani Scheme: Eligibility

The Cent Kalyani Scheme targets women entrepreneurs who require financial assistance for their business ventures. Below are the eligibility criteria for the scheme:

Eligibility CriteriaDetails
Target BeneficiariesWomen entrepreneurs, including self-employed individuals, professionals, and business owners.
Eligible ActivitiesManufacturing, service sector, or trading activities (including retail trade).
Excluded ActivitiesAgricultural activities or self-help groups (SHGs) are not covered under this scheme.
Business TypeBoth new and existing businesses are eligible.
Ownership RequirementThe business must be solely owned or majorly controlled by a woman.
Other Eligibility FactorsApplicants must comply with standard bank norms related to creditworthiness and documentation.
Business loan for women

Targeted Sectors By Cent Kalyani Scheme

The sectors that are primarily being targeted by this scheme are both the manufacturing and service industries, enlisted as follows,

ManufacturingService 
HandloomsDoctors
Food processingLawyers
Textile industryEngineers
Arts and craftsDieticians
Cottage industryFashion designers
Home-based manufacturing industriesHealth and beauty clinics
Beauticians
Transport operators
Daycare creches for children
Libraries

Also Read: MSME Schemes For Empowering Women Entrepreneurs

Exclusions of the Cent Kalyani Scheme

Although it covers many sectors of the MSME businesses run by women, there are a few exclusions that are not eligible for this scheme. These include the following;

  • Individuals involved in the retail businesses, such as shopkeepers and grocery store owners
  • Education and training institutes, whether self-financed or fund aided by other agencies
  • Self-help groups are subsidized under several other government schemes

Here are 5 Government Grants given to women business owners.

Cent Kalyani Scheme: Loan Limit

The scheme offers a maximum loan of 100 lacs, which is 1 crore INR. This is with a margin of 20% in the business. The minimum amount is 1 lacs, and concession rates of interest are offered up to 10 lacs. This means that for a loan amount of 1 lac, the borrower must finance 20,000 INR out of their own pockets.

Cent Kalyani Loan Rate of interest

The rate of interest varies on the principal amount borrowed. The loan interest amount has various concession rates of different slabs of the borrowing amount.

  • Upto 10 lacs: MCLR + 0.25%
  • 10 lacs to 100 lacs: MCLR + 0.50%
  • If rated by an external agency: An additional 0.25% is charged on MCLR + 0.25% or 0.50% depending upon the borrowing principal
Business-Loan

Collaterals and Security

There are several benefits and perks as per the MSME Act, 2006, depending upon the type and amount of money borrowed. The securities and collaterals are as follows;

Primary collaterals: Collateral security: 
Charges on stockThe Cent Kalyani  is covered by CGTMSE
ReceivablesThe first-year fees for CGTMSE have to be paid to the bank
Plant, Machinery, and Equipment
Unencumbered assets that have been acquired 

Also read:- Udyogini Scheme For Women Entrepreneurs

Processing Fees and Insurance

There are no processing fees for this loan. Additionally, there is comprehensive insurance upon the equipment and machinery, or other plant materials, procured by the entrepreneur that is covered under the bank clauses. Please read the documents carefully before the application is processed.

Also Read: Top Five Government Schemes For Retail Businesses

9 Easy Steps To Apply For Cent Kalyani Scheme?

Step 1: Get the Application Form

  1. Go to the Central Bank of India’s official website.
  2. Find the section for application forms and look for the Cent Kalyani Scheme form.
  3. Download the form to your device.

Step 2: Fill Out the Form

  1. Carefully fill in all the details required in the form.
  2. Include information about your business, financial status, and why you need the loan.
  3. Check the form again to ensure all details are correct and complete.

Step 3: Gather Necessary Documents

  1. Collect documents such as identity proof, address proof, income proof, and business proof.
  2. Make sure all documents are up-to-date and match the bank’s requirements.

Step 4: Visit the Nearest Bank Branch

  1. Take your filled application form and the required documents to the closest Central Bank of India branch.
  2. Inform the staff that you want to apply for the Cent Kalyani Scheme.

Step 5: Submit Your Application

  1. Hand over the completed form and all documents to the bank officials.
  2. Be ready to provide any additional details if the bank asks for clarification.

Step 6: Bank Verifies Your Details

  1. The bank will check the information on your application form and verify your documents.
  2. They might perform additional checks to ensure you meet the eligibility criteria.

Step 7: Loan Approval

  1. If everything is in order, the bank will send your application for approval.
  2. The approval committee will review your application based on the scheme’s requirements.

Step 8: Receive the Loan

  1. Once approved, the loan amount will be deposited into your account.
  2. You can then use the money for business purposes like starting or expanding your venture.

Step 9: Stay in Touch

  1. Keep in contact with the bank to stay updated on your application status.
  2. If you have any questions, reach out to the bank staff for guidance.

Key Takeaways From This Scheme

The Cent Kalyani is a welfare scheme that will help upcoming, and existing female entrepreneurs thrive and successfully run their businesses, with modernizations, as and when required, to upscale their businesses, improve their client base, and emerge as another success story for the books. The key takeaways of this scheme are:

  • Only female entrepreneurs having a pre-existing or willing to set up a business may apply.
  • 20% of the funding of the project must be financed by the entrepreneur or the investor
  • The primary collaterals are on the plant setups, stocks, equipment, and other assets procured.
  • There are no third-party guarantees needed as the CGTMSE scheme covers it.
  • The fees for the first year of the CGTMSE scheme have to be paid directly to the bank when taking the loan.
  • There are no processing fees for the loan
  • The minimum amount is 1 lac
  • The interest rate up to 10 lacs is MCLR + 0.25%
  • The interest rate above 10 lacs is MCLR + 0.50%
  • If an external agency rates the account, there is an additional 0.25% charge on the interest amount.
  • The bank clause ensures the seed assets of the business, such as materials, equipment, plant setups, pieces of machinery, and any other assets that have been procured for the business.
  • The scheme covers both capital investments as well as day-to-day running costs.
  • Retailers, education and training institutes, and self-help groups with state or central government scheme subsidies are not eligible to apply.
  • Both business owners and female professionals in the services industry are eligible to apply for the loan.

The Cent Kalyani Scheme is truly a marvel of a scheme that the central bank of India has put up to help potential entrepreneurs. However, we advise you to read the documents carefully before applying for such a loan.

FAQs

1. What types of businesses are eligible for funding under this scheme?
The Cent Kalyani Scheme supports a wide range of businesses, including manufacturing, services, and trading activities, enabling women to establish ventures in diverse sectors.
2. How much financial assistance can one expect under the Cent Kalyani Scheme?
The financial assistance provided under the Cent Kalyani Scheme varies based on the nature and scale of the business. Applicants can inquire with the participating financial institutions for detailed information on the funding available.
3. What are the interest rates for loans obtained through the Cent Kalyani Scheme?
The interest rates for cent business loans under the Cent Kalyani Scheme are competitive and are determined by the participating financial institutions. Applicants are advised to check with the concerned bank for specific interest rate details.
4. Are there any collateral requirements for availing loans under this scheme?
The Cent Kalyani Scheme aims to ease the financial burden on women entrepreneurs, and collateral requirements may vary. Many banks provide collateral-free loans up to a certain limit. Applicants should check the specific collateral requirements with the participating bank.
5. How can one apply for the Cent Kalyani Scheme?
Interested individuals can apply for the Cent Kalyani Scheme through designated banks and financial institutions. The application process typically involves submitting a business plan and fulfilling the necessary documentation requirements.
6. Is there any training or skill development support provided under the Cent Kalyani Scheme?
Yes, the Cent Kalyani Scheme often includes provisions for training and skill development to empower women entrepreneurs. Applicants may inquire with the participating institutions for details on available training programs.
7. Can existing women entrepreneurs apply for support under the Cent Kalyani Scheme?
Yes, the Cent Kalyani Scheme is open to both new and existing women entrepreneurs looking to expand or enhance their businesses. Existing entrepreneurs can explore the scheme for additional support and financial assistance.
8. How can I get more information or clarification about the Cent Kalyani Scheme?
For more information or clarification regarding the Cent Kalyani Scheme, individuals can contact the designated banks, visit the official government website, or reach out to the relevant authorities involved in implementing the scheme in their region.

By indifi

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