CA S S Nayak
B.Com., F.C.A., L.L.B., (Gen)
Partner: S S Nayak & Associates
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• Under the visionary leadership of Ms. A. Manimekhalai, MD and CEO of Union Bank of India, the bank has launched a pioneering initiative to empower women entrepreneurs. As a woman leader herself, Ms. Manimekhalai has been a driving force behind the bank’s efforts to promote financial inclusion and support women-led businesses. The introduction of this scheme is a testimony to her commitment to empowering women and fostering their economic growth.

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Fantastic Financial Support for Women Enterprises in the Most Affordable Terms | Union Nari Shakti | Easy Steps | CA SS Nayak | +91 98453 21005

By CA SS Nayak

India’s premier public sector bank, Union Bank of India, has fantastic schemes for women enterprises. The tagline of the bank is “Good People to Bank With”. It truly resonates with the spirit of entrepreneurship, especially when one explores the Union Nari Shakti scheme.

Normally, when any entrepreneur wants to set up an enterprise, a 25% promoter’s margin is required.

For Example: If the cost of the project is ₹10 lakhs, the promoter must bring in a margin of ₹2.5 lakhs, and the balance 75% is funded by the banks. However, Union Bank of India offers an exceptional and pro-entrepreneurial support system for women entrepreneurs, enabling them to achieve their dreams with ease.

Women entrepreneurs are thrilled to avail of this entrepreneur-friendly scheme. The Union Nari Shakti Scheme stands as a symbol of empowerment and encouragement for women who wish to carve their niche in the world of business.

Union Nari Shakti: A Game-Changer for Women Entrepreneurs

The Union Nari Shakti Scheme is designed to remove financial barriers for women-led MSMEs, offering unparalleled support across various facets of business operations. Here’s an in-depth look at the scheme:

1. Eligibility

• All women-owned and managed MSMEs involved in manufacturing, production, processing, or preservation of goods, or those engaged in services and trading activities, are eligible. Private and public companies with at least 51% of the partner’s/share capital owned by women are considered women-led units.

2. Purpose

• CCH Limits: To meet working capital requirements.
• Term Loan: For purchasing, constructing, or renovating factories/offices/shops/godowns, or for buying plant and machinery.

3. Quantum of Finance

• Minimum: ₹2.00 Lakhs
• Maximum: ₹200.00 Lakhs

4. Margin

• Loans up to ₹100.00 Lakhs: Minimum margin of 5%
• Loans above ₹100.00 Lakhs: Minimum margin of 15%

5. Processing Charges

• Nil

6. Facilities

• Working Capital (Fund-based and Non-Fund-based)
• Term Loan

7. Security

Prime:

• In case of working capital limit, exclusive charge on stock and book debts.
• In case of term loan, exclusive charge on assets created out of bank finance.

Collateral:

• In case the exposure is covered under CGTMSE, no collateral security is to be obtained.
• In cases where the exposure is not covered under CGTMSE, minimum collateral to be 25% of the loan value of any nature acceptable to the bank.

8. Repayment

• Working Capital Limit: Renewable annually.
• Term Loan: Maximum of 84 months, including a one-year moratorium period.

9. Assessment

• Working Capital: Based on need, as assessed using the bank’s prevailing methods.
• Term Loan: Based on project cost, promoter’s margin, and profitability projections, adhering to bank norms.

Visionary Leadership: Ms. A. Manimekhalai

At the helm of Union Bank of India is Ms. A. Manimekhalai, the bank’s Managing Director & CEO since June 3, 2022. As a woman leader with over three decades of banking expertise, she has championed women-centric initiatives, such as the Union Nari Shakti Scheme. Her dynamic leadership, strategic vision, and focus on empowering women have brought significant transformations to the bank’s policies and offerings.

Having started her career in Vijaya Bank as an Officer in 1988, Ms. Manimekhalai steadily climbed the ranks, serving as a Branch Head, Regional Head, and functional head at the corporate level. Prior to her tenure at Union Bank of India, she was the Executive Director at Canara Bank, where she oversaw strategic planning, credit management, marketing, financial inclusion, and the amalgamation of Canara Bank with Syndicate Bank.

Ms. Manimekhalai’s career is adorned with numerous achievements. She has served on the boards of several institutions and contributed to policymaking in areas like financial inclusion, seamless credit flow to healthcare and education, and RRB reforms. A certified CAIIB, she holds an MBA in Marketing from Bangalore University and a Diploma in HR Management from NMIMS, Mumbai.

About Union Bank of India

Established in 1919, Union Bank of India is one of the leading public sector banks in India. With its corporate headquarters in Mumbai, the bank has a robust presence across the nation, operating through 8,500+ domestic branches, 9,100+ ATMs, and 74,000+ employees. The amalgamation of Andhra Bank and Corporation Bank in 2020 further strengthened its reach and capabilities.

The bank’s total business stood at an impressive ₹21,70,779 crore as of September 30, 2024, reflecting its commitment to economic growth and inclusion. With its presence in international markets through branches in Dubai and Sydney, and collaborations with global banking institutions, Union Bank of India exemplifies excellence in financial services.

A Bright Future for Women Entrepreneurs

Union Bank of India’s Union Nari Shakti Scheme is a financial support at one side; on the other hand; it is a movement to empower women. By offering affordable financial support, minimal collateral requirements, and seamless processing, the scheme enables women to pursue their entrepreneurial dreams and contribute to the nation’s economic growth.

Under the leadership of Ms. A. Manimekhalai, the bank continues to inspire confidence among women entrepreneurs, proving that Union Bank of India is indeed “Good People to Bank With”.