SDB ‘Uththamavi’ to fill credit gap in female entrepreneurship segment
SDB bank, which has a strong micro, small and medium enterprises (MSME) focus, has identified the credit gap among female entrepreneurs and introduced a unique initiative to empower them.
Named ‘SDB Uththamavi’, this initiative provides financial assistance to female entrepreneurs to develop their businesses and achieve a level of prosperity.
Expressing her views, SDB bank Head of Business Delrene Seneviratne said, “SDB Uththamavi is a total financial solution, which focuses on the advancement of female entrepreneurs. We want to increase the percentage of women in the MSME sector, who climb up the ladder and reach the medium and the large sectors and we understand that this cannot be achieved by savings alone.”
The requirement of collateral is waived in Uththamavi and replaced with two guarantors acceptable to the bank. The loan also gives the option for women entrepreneurs to draw up to 10 percent of the loan amount after six months of regular servicing of the loan to meet any of her urgent financial needs.
Seneviratne went on to explain what makes Uththamavi a longterm initiative, as opposed to a banking product.
“All entrepreneurs go through different cycles in their lives and for women, this is even more important. Once she has started her business she has to be provided the working capital to expand her business and somebody needs to guide her on financial management and business management. Once she has the working capital and expands her business, she has to know what to invest in. Uththamavi stands by women throughout this whole process, imparting the requisite knowledge.”
Any woman over 18 years of age is eligible for an Uththamavi MSME loan facility, provided that she owns at least 50 percent of the business or is the main decision maker of the business. Any female entrepreneur carrying on an ethical business as a sole proprietorship, partnership or a company incorporated under the Companies Act will be entitled for financial assistance up to Rs.1 million to meet the capital expenditure or working capital needs under the loan scheme. The assistance could be availed by women up to the age of 60 years provided the age at maturity of the loan tenure does not exceed 65 years.
The customers can also open an Uththamavi fixed deposit with a minimum deposit value of Rs.100,000 for a fixed tenure of one year. This scheme entitles the deposit holder to a hospitalization cover for a stipulated period during the tenure of the deposit up to Rs.50,000.
SDB bank strongly believes in the powerful impact empowered women can have on society and that Uththamavi will continue to uplift hardworking women to fulfil their ambitions and enjoy sustained prosperity.