Knowledge Center

Nov 13

Posted by:Amani Nagda
Mahila Pragati Dhara of UCO Bank

UCO’s Mahila Pragati Dhara is an offer given by UCO bank where in deserving and aspiring women entrepreneurs get a chance to stand on their feet by being aided by financial help. This scheme is undertaken in order to encourage brave hearts and sharp minds, who get held back when it comes to not having any kind of financial support. This scheme helps them take a step forward and also tries to bring them closer to their dreams by giving them a push and a head start, financially.

The main purpose of UCO Mahila Pragati Dhara is as follows:

·         It is like an enterprise, expansion or renovation of the unit.

·         If it is in the form of a manufacturing unit, then the loan is offered in order toacquire a fixed asset or to meet the working capital as per the    requirement. Fixed assets can be mainly plant, machinery, equipment, vehicle, furniture and fixtures, tools, etc.

·         If the women entrepreneurs are involved in any kind of service industry, then they will definitely be financially assisted in order to start a new unit for modernisation, expansion or for the renovation for providing and aiding their services.

Listed below are the benefits offered by the UCO Mahila Pragati Dhara:

  1. Financial aid and assistance is offered to the deserving women in order to run an enterprise.
  2. The category covered by this scheme is the Micro and Small Enterprise.
  3. The prospective borrower must have a decent amount of working experience in the intended line of business she is about to start.
  4. Term loan is offered on need base and the working capital requirement that is offered is 20% of the projected realistic annual turnover.
  5. There is no such margin for loan up to Rs.2 lakh. If the loan limit is above Rs.2 lakh and up to Rs.25 lakh, the margin is 15% of the loan amount.
  6. Primary security is the asset created out of the loan amount.
  7. Term loan for Mahila Pragati Dhara is offered for a period of 5 – 7 years based on the life of the asset the loan is being taken against.
  8. The cash credit that is offered is done for a period of 12 months and it should be continuous in nature. It is also subject to renewal every year.

The categories listed below are the ones that the bank lends funds to:


Micro enterprises

Small enterprises

Investment in Plant and Machinery of manufacturing units

Up to Rs.25 lakh

Above Rs.25 lakh and up to Rs.5 crore

Investment in equipment of service sector units

Up to Rs.10 lakh

Above Rs.10 lakh and up to Rs.2 crore



Eligibility to avail UCO MahilaPragatiDhara loan

·         Any woman who is runs a unit individually or with a group of other women can apply for the UCO MahilaPragatiDhara loan.

·         If a woman is running a partnership firm with along with another woman or man, the loan facility is then applicable only if the former woman partner has a major sharein the firm or the enterprise.

·         Private limited companies where the major shares are held by women.

·         Major shares Public Limited companies are held by women only.

·         Women entrepreneurs who are involved in manufacturing and production process and other service units.

·         The borrower of the loan under this scheme must not be a defaulter to any bank or financial institute.

·         One must note that the preference is given to entrepreneurs trained in RSETIs or other approved training institutes like that.

Loan amount -

The minimum loan amount offered under this scheme is Rs.2 lakh and the maximum loan amount offered under UCO MahilaPragatiDhara is Rs.25 lakh only.

The UCO Bank MahilaPragatiDhara Interest rate pattern -

If the loans amount goes up to Rs.25 lakh, the interest rate is then 10.70% per annum.

Loan payment –

If a loan is to be taken under this scheme, the repayment can be spread out to a span of 5 – 7 years also depending on the basis of cash flow in the project.

Listed below are the documents required for UCO MahilaPragatiDhara scheme -

The documents mentioned below will have to be submitted along with your duly filled UCO MahilaPragatiDhara loan application form:

·         One passport size photograph is required.

·         Proof of identity which could be the voter’s ID, the passport, Driving license, PAN card, along with the signature and photo identification by local authority bodies.

·         Proof of the residence that is recent, along with the recent telephone bills, recent electricity bills, property tax papers, passport, voter’s ID and a certificate from a local authority body.

·         Proof of the Business address.

·         If the business premises is rented, a rent agreement for the same must necessarily be provided.

·         If the loan is below Rs.2 lakh, a projected balance sheet, along with the profit and loss statement for the next two years must be submitted.

·         If loan is above Rs.2 lakh, the balance sheet of the last 3 years and profit and loss statement must be submitted.

·         There must be a clearance report from the pollution control board.

·         There should be details of the plant or machinery that is to be acquired. The detail must contain a price of the product as well as the supplier’s name.

·         A license from the competent authority if applicable and if necessary for the business activity, must be provided.

·         The balanced asset and liability statement in general should be provided.

·         There should be a partnership deed and registration certificate if the firm or the enterprise if in the form of a partnership.

·         In case of it being a limited company, then, a Memorandum and Articles of Association and Board Resolution must be submitted.

·         Micro Small and Medium Enterprise (MSME) Certificate

Some of the kind of businesses and services supported and brought up by this kind of scheme is opening up tailoring services, A beauty parlour, laundry and dry – cleaning centre, cyber café, typing centre, cable TV networks, restaurant, mobile repairing services/shop, canteen, road transport operators, etc.


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