The National Scheduled Castes Finance and Development Corporation (NSFDC), which is part of the Ministry of Social Justice and Empowerment (Govt. of India), has implemented the Mahila Samridhi Yojana funding programme with the aim of supporting female entrepreneurs and igniting their entrepreneurial journeys (MSY). Under this programme, the government provides microloans to female business owners who come from economically disadvantaged or marginalised social groups in the sum of up to Rs. 1,000,000.
The flagship programme, which was created with women's empowerment in mind, is being executed countrywide by a wide range of channel partners. Loans are granted to selected women beneficiaries, either directly or through self-help groups (SHGs).
Loan Amount & Interest Rate -2023:
Limits of Loan Amount | Interest Rate Chargeable | |
|---|---|---|
Up to Rs. 1,00,000 per beneficiary | ||
SCA |
Beneficiary | |
1% per annum |
4% per annum | |
- Repayment term: 3 years following a four-month implementation period.
- Six months’ worth of a moratorium (in case of municipality no moratorium period)
Note: On repayment of loans under Mahila Samriddhi Yojana, through the concerned SCAs, the eligible beneficiaries can avail any loan under NSFDC scheme.
Eligibility:
- In order to ensure a fair distribution of the loan, strict eligibility requirements are in place as part of the MSY initiative, which aims to improve the lives of women who belong to marginalised groups in society. The requirements for eligibility include:
- SHGs and women entrepreneur from backward sections of the society are only eligible to draw the benefit of MSY loan
- Woman beneficiary of the minimum age of 18 years
- Beneficiary falling under the BPL category
- Annual income of the beneficiary should be less Rs. 3 lakh per annum
No criminal past record
Any kind of misrepresentation or fudging of data might lead to the rejection of an application.
Documents Required:
The number of women applying for the MSY loan has been overwhelmingly high, coming from all parts of the nation. The fact can be supported by a number of factors, and inadequate documentation is one of them. To apply for the loan programme meant to empower women and improve their socioeconomic situation, the following documentation must be submitted:Proof of Identity – Voter ID card
- Self-group membership ID card
- Income certificate issued by the competent authority
- Filled in the application form to obtain the Mahila Samridhi Yojna loan
- Aadhaar card
- Caste certificate issued by the competent authority
- Bank account book
- Passport size photograph
- Proof of residence (Electricity bill or ration card can be furnished)
As the MSY loan is intended for the backward sections, it has come to light, a substantial number of women beneficiaries have lifted their socio-economic status.
Features & Benefits:
The Government of India has played a significant role in altering the lives of hundreds of women throughout India through the ministry’s main programme for social justice and empowerment. Among the advantages are:
- Improves the recipient’s socioeconomic situation
- Contributes to the integration of the family in need into society.
- Encourages the creation of job opportunities
- Encourages women’s entrepreneurship
- Empowers women and helps them become independent
- Low levels of documentation
- Increases women’s self-confidence
Other Significant Information:Self Help Groups (SHGs): Economically compatible individuals form a group on their own initiative in order to increase their income through savings and participation in group projects.
Channel Partners: Channel partners support the organisation and its members in their economic activities and in applying for the MSY loan. They are represented by qualified specialists in the sector.
Member Ration: According to the laws and regulations, a SHG may have a maximum of 20 women members. According to the eligibility requirements, 75% of the members must be from the underprivileged classes, while the remaining 25% of the women members may come from other disadvantaged groups, such as Scheduled Castes or people with physical disabilities.
Loan Disbursal: Beneficiaries receive loans through State Channelizing Agencies (SCAs), Regional Rural Banks (RRBs), and nationalised banks.
FAQ’s
- I am under the general category, and my mother wants to apply for the MSY loan. Can it be done?
The guidelines very clearly state that the beneficiary must be a member of a scheduled caste or one of the less privileged sections.
- Is it mandatory to be from a Below Poverty Line (BPL) section to avail the MSY loan?
Yes, the beneficiary woman must fall within the BPL category.
- A SHG includes the sister of my cousin. She lacks an ID and an Aadhar card. Can she apply for a loan?
Aadhar cards and other forms of identification, like as voter identification cards, are now easy to obtain. Contact the relevant authority. MSY loans cannot be approved without Aadhar and voter identification cards.
- How long will it take to repay the loan?
The Mahila Samridhi Yojna (MSY) is designed for women from underprivileged social groups who are earning less than twice the federal poverty level.
- When we discuss the Mahila Samridhi Yojna, what do we mean by the target group?
The MSY loan's utilisation period starts on the disbursal date. For four months. The beneficiary must use the money and finish the necessary paperwork within this time frame.
- What is the MSY loan's utilisation period?
The MSY loan's utilisation period starts on the disbursal date. For four months. The beneficiary must use the money and finish the necessary paperwork within this time frame.
- I come from a low-class neighbourhood. However, I am missing the caste certificate. What ought I to do?
A caste certificate issued by the appropriate authority is required by MSY protocol. To receive the caste certificate, approach the designated department.
