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Mahila Samriddhi Yojana: A Micro Finance Scheme for Women Entrepreneurs
20 June 2022
The Ministry of Social Justice and Empowerment under the Government of India has started a policy—Mahila Samriddhi Yojana, to encourage women entrepreneurs and give momentum to their journey as entrepreneurs. More women in India are choosing minimum wage employment to ownership of their own businesses. Their passion for personal growth and financial independence has led them to explore the path of entrepreneurship.
So, what are the benefits of Mahila Samriddhi Yojana? How to apply for financial assistance under this scheme and what are the eligibility criteria? Read on to get all the details here!
What is Mahila Samriddhi Yojana?
The Mahila Samriddhi Yojana is a visionary Government scheme that aims to benefit women entrepreneurs from the backward classes by providing them with financial support. It is a microfinance policy introduced for the upliftment of rural women entrepreneurs. Since its inception in 1993, the scheme has enabled entrepreneurship through financing businesses led by women at affordable loan rates. The Regional Rural Banks (RRB) and nationalized banks offer loans to women who need capital to start or progress their businesses.
Objectives of the Mahila Samriddhi Yojana
The women in the rural sector who are financially struggling can use this scheme to avail benefits to overcome the credit crunch in business. The following are the main objectives of this scheme:
Encourage women from low-income families to develop an entrepreneurial mindset.
To provide financial support to women unable to start their businesses due to credit crunch.
To motivate and empower women, particularly those from scheduled castes and tribes, to pursue their entrepreneurial dreams and become self-sufficient.
The policy’s main aim is to promote the development and growth of women from the weaker sections of society socially, emotionally, and economically.
Groups Impacted by the Mahila Samriddhi Yojana
The target groups under this scheme are as under:
Self-Help Groups (SHGs)—These are the economically dependent groups of individuals who form SHGs to contribute funds to their members.
Women from low-income families or the backward classes (caste or class a tribe category).
Provision for Finance in Mahila Samriddhi Yojana
The loan amount that is sanctioned per beneficiary is Rs. 1,40,000. The amount of loan received shall be utilized within 4 months from the date of disbursement.
Mahila Samriddhi Yojana Finance Breakdown
The loan sanctioned after the Mahila Samriddhi Yojana application is 95%, and the remaining balance of 5% will be provided by the State Channelizing Agency (SCA) or beneficiary contribution.
The loan provided under Mahila Samriddhi Yojana is to be paid back in 3.5 years in quarterly instalments from the date on which the loan was paid out to the applicant’s bank account. A moratorium period of 3 months is provided under the scheme.
The interest rate for the government to State Channelizing Agencies (SCA) is 1% per annum, and the rate for SCAs to beneficiaries is 4% per annum.
Benefits and Features of the Mahila Samriddhi Yojana
A few significant features and benefits of Mahila Samriddhi Yojana are as follows:
Upliftment of the economic condition of the beneficiary.
Generation of employment opportunities for minority groups.
It helps in the empowerment of women and makes them self-reliant.
Aiding families below the poverty line.
The Convenient registration process with minimal documentation
Support the socially deprived with various entrepreneurial skills.
Improvement in the financial status of the minority class.
Building the self-esteem of women by improving their financial circumstances.
Eligibility for the Mahila Samriddhi Yojana
Women entrepreneurs of the backward class or self-help groups are eligible.
The age of a woman should be 18 years or more.
Women belonging to below-poverty-line families.
The policy issues loans to women whose family income is less than Rs. 3 lakh per annum.
If the family income of the woman is less than Rs. 1.5 lakhs, the lender will release 50% of the funds to the applicant.
The application process has been mentioned in detail in the National Scheduled Castes Finance And Development Corporation (NBCFDC). Eligible applicants can apply for the scheme both online and offline. Let’s study in detail the application process.
Candidates can apply online through any state Government portal or the official website: https://nsfdc.nic.in/en/mahila-samriddhi-yojana.
Mahila Samriddhi Yojana Online Application forms are readily available on the website and can be downloaded.
Complete the form with all the essential information.
An applicant may submit the Mahila Samriddhi Yojana online for further processing.
The applicant may track the application process through SMS.
The candidate may visit the nearest bank branch or the State Channelizing Agency (SCA) office and collect the Mahila Samriddhi Yojana application form.
The applicant shall submit the form along with the documents required to be submitted.
The candidate must mention the method and language of the training, which must include vocal and behavioural choices.
After the submission, the SCA carries out the verification process, and the genuine applications are approved for a loan.
The policy requires simple and minimum documents. The following documents are required to complete the process of claiming. identity
Proof of the candidate’s identity, such as an Aadhar card, voter ID card, driver’s license, etc.
Self-group membership ID card
Bank account book
Residence photograph (passport size)
Address proof (electricity bill, water bill, etc.).
A duly completed application form
Evidence of the caste-caste certificate
It is to be noted that if the applicant files any forged documents, the application will be rejected.
Things to remember about the Mahila Samriddhi Yojana
The Ministry of Social Justice and Empowerment brought the Mahila Samriddhi Yojana
It is a micro-finance policy for the upliftment of rural women.
The target group consists of mainly backward community women. -Schedule caste or scheduled tribe.
To help support women and inspire women to have an entrepreneurial mindset.
Financial assistance up to Rs. 1,40,000 is provided.
Repayment is made in 3.5 years in quarterly instalments from the date the loan was paid out to the applicant’s bank account.
A moratorium period of 3 months is provided under the scheme.
Female entrepreneurs from underserved communities who are at least 18 years old.
The loans are provided through the State Channelizing Agency (SCA), regional rural banks (RRB), and nationalized banks.
The application for the loan can be made online or offline.
Mahila Samriddhi Yojana has given wings to many women. It has helped women achieve financial independence and a hopeful future. The main objective of the Mahila Samriddhi Yojana is to empower women and families to grow intellectually and for the country’s healthy and prosperous future. It has generated many employment and entrepreneurial opportunities for rural women. In other words, this scheme is a blessing for women who are ambitious and have a desire to become entrepreneurs.
Q1. Is a general category woman eligible to obtain a Mahila Samriddhi Yojana Loan?
Ans:The scheme mentions that the beneficiary should be a woman who belongs to a backward or scheduled class. The woman should be from a minority section of society.
Q2. What is the utilization period of the loan?
Ans:The utilization period starts once the loan is disbursed and received by the beneficiary. The loan is repaid within 4 months. The beneficiary has to complete all the utilization formalities in this period.
Q3. Who is the Mahila Samriddhi Yojana loan sanctioning authority?
Ans:The Regional Rural Banks, consolidated banks, and SCAs are the authorities that provide loans to eligible applicants.
Q4. How is it possible to apply for the Mahila Samriddhi Yojana online?
Ans:Eligible candidates can apply for a loan through the Mahila Samriddhi Yojana online application. Such forms are easily available on the website and can be downloaded. The forms should be duly filled out before they are submitted.
Q5. Is an Aadhar card the compulsory document to be submitted for a loan application?
Ans: Yes, the Aadhar card is a required document for loan applications. This document provides authentic identification proof as required by the Government of India.
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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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