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!
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.
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:
The target groups under this scheme are as under:
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.
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.
A few significant features and benefits of Mahila Samriddhi Yojana are as follows:
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.
The policy requires simple and minimum documents. The following documents are required to complete the process of claiming. identity
It is to be noted that if the applicant files any forged documents, the application will be rejected.
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.
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.
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.
Ans: The Regional Rural Banks, consolidated banks, and SCAs are the authorities that provide loans to eligible applicants.
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.
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.
Before you go…
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
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.
What is Primary Deficit? – Example, Formula & MeasuresWhat is a Primary Deficit? Primary Deficit is the difference between the current year’s fiscal... Read More »
What is Financial Ratio Analysis? – Objectives, Types and UsesRatio analysis is a process that allows people to assess the financial health of a company. Using t... Read More »
Treasury Management – Its Functions, Types and BenefitsEven the most well-funded business can run into huge losses if it does not have the resources to fu... Read More »
How Anti Money Laundering Combats Financial Crime?Anti Money Laundering (AML) is a system of rules, laws, regulations, and procedures that financial ... Read More »
Key Difference Between Factoring and Forfaiting in Trade FinanceFactoring and forfaiting have grown in prominence as major sources of export financing. For the uni... Read More »
What is Factoring and its Importance in Financial Management?Factoring is a practice in which a company buys the accounts receivable of another company at a dis... Read More »
What is Budget Surplus: Its Effects, Advantages and Impact with ExamplesWhen the revenue of a government, business, or individual exceeds its expenses in a given period, i... Read More »
What is Balanced Budget – Components, Importance and ExamplesIn financial planning or the budgeting process, a balanced budget is one in which total anticipated... Read More »
What Does Inflationary Gap Mean in Macroeconomics?In macroeconomics, the difference between current and potential GDP is known as a gap. This gap is ... Read More »
What is Accounting Conservatism in Finance and How Does it Work?Accounting conservatism involves a conservative set of accounting guidelines wherein the worst-case... Read More »