SBI's 'Asmita': Boosting Women Entrepreneurs with Collateral-Free Loans

The State Bank of India has launched 'Asmita,' a new collateral-free loan product aimed at empowering women entrepreneurs with low-interest funding. This initiative targets the low business borrowing trend among women, offering streamlined access to finance. Additionally, a specialized debit card and diaspora banking product have been introduced to further support women.

The State Bank of India (SBI) has unveiled its latest loan initiative, 'Asmita,' which focuses on empowering women entrepreneurs across the nation. In a strategic move timed with the International Women's Day, the bank offers collateral-free, low-interest rate loans to women-led businesses.

The launch follows a Transunion Cibil report indicating a preference shift among women from business to consumption-based borrowing. Data shows a mere 3% of women borrow for business, while 42% opt for personal finance products, highlighting the need for targeted financial products like 'Asmita.' SBI Chairman CS Setty emphasized the product's goal of providing swift and simple financing for micro, small, and medium enterprises through a digital process.

Complementing these efforts, SBI's MD Vinay Tonse described the loan as a fusion of technology and social progress. The bank also introduced the 'Nari Shakti' platinum debit card for women, while Bank of Baroda launched 'Bob Global Women NRE and NRO Savings Account' for women in the Indian diaspora, offering competitive terms and benefits.

(With inputs from agencies.)