Policies, Codes & Other Documents
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 of 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.
The microfinance scheme was introduced with the aim to aid underprivileged women entrepreneurs in their business journey. By providing loans for micro, small and medium-sized enterprises, the Mahila Samridhi Yojana facilitates low-interest financial help to women looking to start or grow their businesses.
This is done by the National Backward Classes Finance and Development Corporation (NBCFDC) through Self-help groups (SHGs) by State Channelising Agencies (SCA).
A significant role in this scheme is played by Self-help groups (SHGs). Let’s take a closer look at these.
A self-help group is an association of individuals belonging to a similar economic background who come together to save and contribute common funds to the members of the SHG. An SHG cannot have more than 20 members. 75% of the members are from the backward classes, while 25% can be from any other weaker section of society as stipulated by the law. The latter include disabled individuals and those belonging to scheduled caste (SC).
The SCAs also play a critical role. Through their field officers, they encourage women in their target groups to form SHGs and benefit from the financial assistance offered by the Mahila Samridhi Yojana.
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:
The loan terms for women beneficiaries and self-help groups under the MSY scheme are as follows:
Along with your application for the loan, you also need to submit certain documents for verification. These are as follows.
Applying for the benefits under the MSY is an easy process. After you have the necessary documents listed above, you’ve done most of the heavy lifting.
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.
After this, your application will be processed and documents verified as per the procedure laid down. All you need to do is wait to receive confirmation that your application has been approved, and then you’re ready to start your business.
The Mahila Samridhi Yojana (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 installments before applying, you can also use our handy business loan EMI calculator here.
Visit our website to learn more and apply for a loan today!
Policies, Codes & Other Documents