The Mahila Samridhi Yojana (MSY), as the name suggests, is a micro-finance scheme designed for the welfare of women entrepreneurs.
The scheme was launched in 1993 by the Ministry of Social Justice and Empowerment, the Government of India. And even today, it is giving wings to the entrepreneurial dreams of numerous women.
Since the scheme’s initiation, countless women have financed their business ventures through affordable loan offerings, and so can you!
Here’s everything you need to know about this scheme.
Target groups and eligibility criteria
The primary focus of the MSY scheme is the upliftment of women of backward classes and poor economic backgrounds. It also extends financial aid to women’s self-help groups (SHGs).
Here are the business loan eligibility criteria for MSY:
- Only women belonging to minority sections and self-help groups can apply.
- The self-help group can have a maximum strength of 20 members. Additionally, at least 60% of the members have to be from backward classes. The remaining 40% can be from other weaker sections like SC, minorities, people with disabilities, etc.
- The minimum age of the applicant should be 18 years.
- The applicant’s annual family income should be under Rs. 3 lakhs. If the family income is Rs. 1.5 lakh or below, the lenders will release 50% of the funds to the applicant.
- The applicant should not have any criminal history or felony records.
Additional Read: Mudra Yojana Scheme for Women: Everything You Need to Know About
Features and benefits
The loan terms for women beneficiaries and self-help groups under the MSY scheme are as follows:
- The maximum amount per beneficiary is Rs. 1,40,000.
- 95% of the business loan will be sanctioned to the beneficiaries. The remaining 5% will be funded by the State Channelizing Agencies (SCAs) or beneficiary contributions.
- The rate of interest for the government to SCAs is 1% per annum.
- The rate of interest for SCAs to the beneficiaries is 4% per annum.
- The utilisation period for the loan received is 4 months, starting from the date of disbursement of the loan.
- The repayment tenure is 36 months, while the moratorium period is 3 months.
- Identity proof, such as voter Id card
- Self-help group membership card
- Income certificate
- Complete application form
- Aadhaar card
- Caste certificate
- Bank passbook
- Passport size photograph
- Proof of residence, such as ration card
How to apply?
To apply for MSY, obtain an application form from your Regional Rural Bank, any nationalised bank, or the nearest SCA office. Fill out the form, attach the necessary documents and submit.
Additional Read: What Are the New Business Loan Schemes for SMEs in 2021?
To sum up
The MSY scheme opens up new windows of opportunities to minority women wanting to achieve financial independence. Over the past decades, MSY has enabled families to overcome poverty, generated employment opportunities, and cultivated entrepreneurship among rural women.
To help such women entrepreneurs, Tata Capital also provides special loans at affordable business loan interest rates and without collateral. What’s more, we provide flexible repayment options and structured EMI plans!
Besides, if you want to compute your monthly instalments before applying, you can also use our handy business loan EMI calculator here.