To promote women entrepreneurship, the country’s first Women’s Bank — the Bharatiya Mahila Bank (BMB) — has chosen to do away with collateral for loans availed by the fairer sex.
The BMB will provide collateral-free loans for amounts up to Rs 1 crore, which will instead be covered under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
For loans availed for smaller amounts such as Rs 20,000, the bank will completely waive off the requirement for collateral.