With an intention to uplift women of marginalised classes, the government of India has come up with this wonderful initiative to encourage women entrepreneurs of the backward classes. The Mahila Samriddhi Yojana, which was developed to stimulate more and more backward-class women entrepreneurs, was implemented on 2nd October 1993.
It was developed under the National Scheduled Castes Finance and Development Corporation under the ministry of social justice and empowerment, which offers microfinancing services to women who fulfil the eligibility conditions.
With the rise of working-class women, more and more turn towards small business ownership or entrepreneurship, this scheme is a stepping stone and provides the much-needed boost. Let us understand a bit more about the overall scheme.
Although India has made considerable improvement in women's empowerment, encouragement is still needed in some backward classes and marginalised groups, some of the main objectives of the Mahila Samriddhi Yojana, include the following:-
1. To encourage women of a certain class of the economy to develop an entrepreneurial mindset and motivate them to open their businesses.
2. To provide adequate financing services, which will help kick start their small business schemes.
3. To help women break from the shackles of taboos and injustices and assist them to look at the overall wider picture.
The launch of this scheme has seen an increase in the number of women entrepreneurs coming forward to launch their MSMEs.
Some of the important features that make the above possible are as follows:-
1. The loan under this scheme is distributed either through self-help groups or directly to the beneficiaries. The maximum amount of loan distributed under this scheme via self-help groups is Rs.150000 and through beneficiaries is Rs.100000
2. The loan restriction for self-help groups is restricted to a maximum of 20 members
The rate of interest given under this is very nominal; the government of India understands the particular class of women and therefore facilitates easy repayment of the loan.
1. From NBCFDC to lender partner- 1%
2. From lender partner to the beneficiary- 4%
The tenure for the repayment of a loan under this scheme is a maximum period of 48 months of 4 years, including the moratorium period (duration in which the borrower is not required to repay the loan) which is 6 months.
The Mahila Samriddhi Yojana is one of the most effective schemes operated by the government, which helps in the encouragement of women entrepreneurs in rural India, some of the important benefits of this scheme include the following:-
1. This Yojana provides an opportunity for women to be more independent and self-reliant, a must for women in the changing times
2. Ambitious women who hail from rural areas constricted by lack of money can make use of this scheme to pay for their businesses
3. The gender gap can be fulfilled since women entrepreneurs can now thrive because of this scheme
4. An independent woman is a happy and confident woman, this scheme can improve the confidence of women of rural and backward classes
Women help run the economy without which it would collapse, the Mahila Samriddhi Yojana can be an efficient step forward in creating like-minded, strong, and independent women who help take the world forward.
Some of the eligibility criteria which have to be fulfilled before applying for the loan are:
1. The annual income of the family should not be more than 3 Lakh.
2. The women should be of a backward class and should be below the poverty line. Should hold a valid BPL card as notified by state and central government
3. If the women’s income is less than 1.5Lakh, then the banks have to release 50% of their income to the women
If the following eligibility criterion is fulfilled, the documents which have to be submitted are:
a. Identity proof- voter ID, BPL card
b. Self-help group membership card
c. Income certificate
d. Aadhar card
e. Complete application form
f. Caste certificate
g. Bank passbook
h. Passport size photograph
i. Proof of residency
1. Make sure all the eligibility and documents criterion is fulfilled
2. Go to your nearest Regional rural bank or Nationalised bank and obtain your application form
3. Fill out the form, attach the necessary documents and submit the same
4. The required documents and application form will be verified as per the required procedure.
5. Then you need to wait for the confirmation, after which you can start your MSME business
These are the required steps that one has to fulfil to obtain the loan and start their own MSME business.
The maximum tenure under the Mahila Samriddhi Yojana is 48 months or 4 years
1% for self-help groups and 4% for beneficiaries
The maximum finance available under the MSY scheme is 1, 00,000 per beneficiary
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