Get the Tata Capital App to apply for Loans & manage your account. Download Now


Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer

Tata Capital > Blog > Loan for Business > What is the Stree Shakti Yojana for Businesswoman?

Loan for Business

What is the Stree Shakti Yojana for Businesswoman?

What is the Stree Shakti Yojana for Businesswoman?

The Stree Shakti Yojana, launched by the government in October 2000, is a flagship scheme designed to empower women entrepreneurs nationwide. The scheme provides financial aid and support to women who aspire to start or expand their businesses. Through this initiative, women can achieve economic independence, contribute to job creation, and drive community socio-economic development.

In this blog post, we'll cover the Stree Shakti Yojana (SSY), a government initiative to empower women entrepreneurs in India. We'll explore its objectives, features, funding scheme, eligibility criteria, application process, and required documents.

So, if you're curious about how SSY makes a difference in women's entrepreneurship, read on!

Features of the Stree Shakti Yojana loan

One of the critical features of the Pradhan Mantri Stree Shakti Yojana loan is its provision of financial assistance in business loans, with amounts ranging up to Rs. 50 Lakhs. This financial support is a crucial lifeline for women entrepreneurs, enabling them to overcome initial capital constraints and pursue their business aspirations.

What sets this scheme apart is its accessibility; unlike traditional loans, no collateral is required, making it more feasible for women who may lack substantial assets to pledge as collateral.

Moreover, the scheme offers an interest rate concession of 0.50% for loans exceeding Rs. 2 lakhs, further reducing the financial burden on borrowers. The repayment terms are flexible, with a 36-month repayment period, including a one-month moratorium.

This flexibility allows entrepreneurs to manage their loan repayments in a manner that aligns with the cash flow of their businesses. Additionally, to qualify for the scheme, applicants must have at least 50% ownership of the company, ensuring that the benefits reach women actively involved in driving their ventures forward.

Benefits of the Stree Shakti Yojana loan

The Stree Shakti Yojana loan benefits women entrepreneurs and the broader economy. Firstly, it empowers women by providing them the means to achieve economic independence and self-reliance. By accessing financial assistance and support, women can break free from traditional gender roles and confidently pursue their entrepreneurial aspirations.

Furthermore, women-owned businesses supported by the scheme contribute significantly to job creation and economic growth. As these enterprises thrive, they generate employment opportunities, boosting local economies and fostering socio-economic development.

Additionally, the scheme promotes financial inclusion by offering loans without collateral, thereby expanding access to credit for women who may otherwise face barriers to accessing traditional financing options.

Lastly, the Stree Shakti Yojana emphasises skill development and capacity-building among women entrepreneurs. Through entrepreneurship development programs and training initiatives, women gain essential business skills and knowledge, enhancing their capabilities to run successful enterprises.

Impact of the Stree Shakti Yojana loan

The impact of the Stree Shakti Yojana on women entrepreneurs and the economy has been significant. Since its inception, the scheme has disbursed millions in financial aid, empowering countless women to realise their entrepreneurial dreams. Thousands of women-owned businesses have flourished, creating jobs and driving economic growth in their communities.

Moreover, the scheme has fostered a culture of entrepreneurship and innovation among women, paving the way for a more inclusive and vibrant economy. By providing women with the necessary resources and support, the Stree Shakti Yojana loan has unleashed a wave of entrepreneurial talent, fuelling economic progress and social development across India.

Stree Shakti Yojana loan: eligibility criteria

Applicants must meet specific eligibility criteria for the Pradhan Mantri Stree Shakti Yojana. Firstly, the scheme is exclusively for women entrepreneurs, focusing on gender empowerment.

Applicants must have at least 50% ownership of the business for which they seek the loan, ensuring that the benefits reach women actively involved in driving their ventures forward.

Additionally, applicants must participate in or at least pursue the Entrepreneurship Development Programmes (EDP) organised by state agencies.

The scheme supports various types of businesses, including startups and existing enterprises, catering to the diverse needs and aspirations of women entrepreneurs across different sectors of the economy. By meeting these eligibility criteria, women entrepreneurs can access the financial assistance and support the Stree Shakti Yojana provided to fuel their business growth and success.

Stree Shakti Yojana loan: application process

Applicants must gather essential documents for business loans, including proof of identity, address, and a comprehensive business plan. Once the documentation is in order, applicants can submit their application and the required documents to the nearest State Bank of India branch.

Applications undergo thorough evaluation based on predetermined criteria, such as the business idea's viability and the applicant's ownership stake. Upon approval, the loan amount is disbursed to eligible women entrepreneurs. Throughout the process, applicants may receive guidance and support from the implementing agency or financial institution to navigate the application process smoothly.

The Stree Shakti Yojana’s online application can be downloaded from the official State Bank of India website. Applicants would then need to take a printout of the form, duly fill it out, and submit it to the nearest branch.

Required documents

Add the below content in listicle format.

1. Identity proof:

a. Voter ID card

b. Passport

c. Driving licence

d. PAN card

2. Address proof:

a. Telephone bill

b. Property tax receipt

c. Electricity bill

d. Voter's ID card

e. Company registration certificate

f. Company partnership registration certificate (in the case of partnership firms)

3. Income proof:

a. Balance sheets (last 3 years)

b. Income statements (last 3 years)

c. GST returns (last 3 years)

4. Business plan:

a. Business plan with projected financials for at least 2 years in case of working capital

b. Profile of business enterprise

c. Promoters’ names

d. Directors' names

e. Partners' names

f. Business type

g. Business facilities and premises

h. Shareholding ratios

i. Lease agreements' copy

j. Ownership title deeds

Final thoughts

The Stree Shakti Yojana is a transformative initiative that empowers women entrepreneurs and drives economic growth in India. The scheme enables women to break barriers, realise their potential, and contribute meaningfully to the nation's progress through its provision of financial assistance, skill development, and support. The Stree Shakti Yojana heralds a brighter, more inclusive future for all by nurturing a culture of entrepreneurship and innovation among women.

Experience the difference with Tata Capital's competitive interest rates and seamless loan approval process. Our approach goes beyond traditional lending. We offer personalised support and innovative financial solutions tailored to your business requirements. Connect with us today to learn more about our business loans for women and drive your business forward!

Leave a Reply

Your email address will not be published. Required fields are marked *