With the number of working women rising in the country, gender-based progress is no longer a far-fetched dream.
Needless to say, we are moving in the right direction, and women are slowly gaining an equal footing in the workplace. After all, women too can become problem solvers and excel in every field.
But unfortunately, women in rural areas still face immense social stigma and have to cross several hurdles to become financially independent. Therefore, the Indian Government has introduced a scheme to provide business loans to women entrepreneurs in the rural region.
Read on to learn all about the scheme.
What is Mahila Samridhi Yojana (MSY)?
It is a micro-finance scheme introduced by the Ministry of Social Justice and Empowerment Department on October 2nd, 1993. The scheme is oriented towards providing financial support to underprivileged women residing in rural areas and belonging to backward classes and poor economic backgrounds. It helps women with an entrepreneurial dream to fulfil their dreams.
Additional read – Mudra Yojana Scheme for Women: Everything You Need to Know About
What are the objectives?
MSY caters to the microfinance needs of women entrepreneurs belonging to the target groups. It aims to provide MSME loans through self-help groups under the Micro Finance Scheme. These loans are provided through the Regional Rural Banks (RRBs), State Channelizing Agencies (SCAs), and Nationalised Banks.
Moreover, the loan can be repaid through quarterly instalments within the next 4 years, including a moratorium period of 6 months after the recovery of the principal amount.
Here are the eligibility conditions for obtaining the benefits of this loan scheme for women:
- Only women entrepreneurs from backward classes (SC and ST categories) can apply for the scheme.
- The minimum age of the woman applicant should be 18 years.
- The annual income of the women should be less than Rs. 3 Lakhs per annum.
- The applicant must have zero criminal history or felony records.
- If the applicant’s family income is less than Rs. 1.5 lakh, the bank will release half the funds to the applicant.
- The applicant’s annual family income should be fixed at Rs. 3 lakh.
Benefits of the MSY scheme
Some essential benefits of MSY are as follows:
- The scheme helps support socially deprived individuals in their business endeavours and improve the financial status of rural women.
- The policy has created more employment opportunities for underprivileged and minority classes. As a result, it is working towards building a more robust economy.
- The scheme provides additional assistance to individuals who fall under the Below Poverty Line (BPL).
- You don’t have to go through any lengthy documentation or registration process to apply for the scheme.
Additional read –Top 15 business ideas with low investment and high profits
In a nutshell
The MSY scheme aims to promote women entrepreneurs from rural areas and help them achieve financial independence and overcome poverty. And to help such ambitious women, Tata Capital offers unique loan offerings at competitive business loan interest rates.
If you are a budding entrepreneur with a unique business idea, we can help you realise your dreams and reach your goals. So, what are you waiting for? Reach out to Tata Capital today!