Credit-Based Schemes For SC – Mahila Samriddhi Yojana

The Mahila Samriddhi Yojana is a government initiative that supports women entrepreneurs from disadvantaged backgrounds by providing microfinance assistance directly or through Self-Help Groups (SHGs). It aims to empower them and create opportunities for success in their entrepreneurial endeavours.

Introduction

The Mahila Samriddhi Yojana is a government initiative designed to support women entrepreneurs who come from disadvantaged or economically challenged backgrounds. The scheme was introduced under the auspices of the National Backward Classes Finance and Development Corporation (NBCFDC), operating under the Ministry of Social Justice and Empowerment. Through this program, the government facilitates access to microfinance for women entrepreneurs, either directly or through Self-Help Groups (SHGs).

Objective of Mahila Samridhi Yojana

The primary focus of this scheme is to facilitate the fulfilment of microfinance requirements for women, enabling them to realise their entrepreneurial and related objectives. The introduction of this scheme encompasses diverse objectives, which are outlined as follows:

1. To foster an entrepreneurial mindset among women residing in rural areas, underprivileged communities, and minority groups.
2. To promote the pursuit of aspirations among women belonging to minority populations, including scheduled castes or scheduled tribes, by helping them overcome societal stigmas.
3. To provide support to women who face financial limitations, hindering their ability to establish independent businesses or pursue career opportunities.

Through the Mahila Samriddhi Yojana, the government aims to address these multifaceted objectives, ultimately empowering women entrepreneurs who face challenges in accessing sufficient financial assistance.

Eligibility Criteria for Mahila Samriddhi Yojana

1. The applicant must be a woman.
2. The age of the woman should be above 18 years.
3. The venture for which the loan is sought should fall under the small-scale industry category.
4. The maximum annual income should not exceed 3 lakhs
5. Applicants must be part of Self-Help Groups (SHGs) where at least 60% of the members are from the Backward Classes.
6. The remaining 40% of SHG members can be from other disadvantaged sections, such as physically handicapped women, minorities, SC, ST, etc.

Documents required for Mahila Samriddhi Yojana

1. Identity proof (Aadhaar Card, PAN Card, etc.)
2. Address proof
3. Passport-size  photographs
4. Business plan
5. Quotations for machinery/equipment (if required)

Eligible Lender Partners

• State Channelising Agencies (SCAs)
• Regional Rural Banks (RRBs)
• Nationalised Banks
• Micro Finance Institutions (MFIs)

Features and Benefits of Mahila Samriddhi Yojana

1. Financial assistance is provided to both self-help organisations and unmarried women
2. The scheme offers loans to self-help organisations consisting of 20 or more strong women members
3. Individual women beneficiaries can receive a maximum loan amount of ₹ 1,40,000
4. Loans provided through this scheme are directly received by the self-help groups (SHGs) or the beneficiaries.

The scheme brings the following benefits:

1. It enhances the financial situation of rural women
2. It supports the development of business ventures for socially isolated individuals
3. Special assistance is provided to households eligible under the Below Poverty Line (BPL) category
4. The strategy creates more employment opportunities for minorities
5. It provides support to successful women entrepreneurs.
6. The registration process is simple and involves easy document exchange.

Quantum of Loan

• Loans are provided through Self-Help Groups (SHGs) or directly to the beneficiaries.
• The maximum loan amount disbursed per SHG is up to  ₹15,00,000, and per beneficiary is up to ₹1,00,000.
• SHGs must have a maximum of 20 members to be eligible for the scheme.

Rate of Interest

The rate of interest under this scheme is subsidised and is comparatively lower than regular bank loans. However, the exact rate may vary based on the lending institution.

Particulars	Rate of Interest
From NBCFDC to lender Partner	1%
From lender Partner to Beneficiary	4%

Tenure

The Mahila Samriddhi Yojana offers loans at a low-interest rate of 1% from NBCFDC to the lender partner, and the lender charges a nominal interest rate of 4% to the beneficiaries. The repayment period for these loans is up to 48 months (4 years), which includes a maximum moratorium period of 6 months.

Loan under Mahila Samridhi Yojana

The loan can be used for setting up a small-scale industry, purchasing machinery/equipment, working capital, or other business-related expenses.

Other Significant Information

• Proper utilisation of the loan amount for the specified business purpose is mandatory.
• Regular monitoring and evaluation of the business might be conducted by the lending institution.

Application Process for Loans Under Mahila Samriddhi Yojana

The application process for loans under the Mahila Samriddhi Yojana may vary slightly depending on the specific guidelines and procedures established by the implementing agency or financial institution. However, here is a general outline of the steps involved in applying for loans under this scheme:

1. Eligibility Check: Ensure that you meet the eligibility criteria set for the Mahila Samriddhi Yojana. This may include factors such as being a member of a self-help organisation, belonging to a specific income group, or meeting certain demographic criteria.
2. Gather Required Documents: Collect all the necessary documents that are typically required for loan applications. These may include identification proof, address proof, income proof, bank statements, self-help organisation registration documents (if applicable), and any other documents specified by the lending institution.
3. Approach the Lending Institution: Visit the designated lending institution or bank that participates in the Mahila Samridhi Yojana. Inquire about the loan application process and express your interest in applying for a loan under the scheme.
4. Obtain and Fill the Application Form: Request the loan application form from the lending institution. Fill in the form accurately and provide all the required information. Ensure that you attach the supporting documents as specified.
5. Submit the Application: Once you have completed the application form and attached the necessary documents, submit the application to the lending institution. Ensure that you retain a copy of the application and any acknowledgment receipt provided by the institution.
6. Verification and Evaluation: The lending institution will review your application, verify the provided information, and assess your eligibility for the loan. This may involve conducting background checks, assessing creditworthiness, and evaluating the feasibility of the proposed business venture (if applicable).
7. Loan Approval and Disbursement: If your application is approved, you will receive an offer letter specifying the loan amount, interest rate, repayment terms, and any other relevant conditions. Review the terms and conditions carefully before accepting the loan offer. Upon acceptance, the loan amount will be disbursed to your bank account or through the designated channel.

Contact Details for Mahila Samriddhi Yojana

• Toll-free number – 18001023399 (available between 10 am to 5 pm from Monday to Friday)
• Other Telephone Number – +91 11 45854400. 
• Email Id – info@nbcfdc.gov.in.

FAQs:

1. What is Mahila Samriddhi Yojana?

Mahila Samriddhi Yojana is a government scheme that provides subsidised loans to women for starting small-scale industries.

2. What is the utilisation period under this scheme?

The utilisation period refers to the time within which the loan must be used for the intended business purpose. It is 4 months.

3. What is the maximum finance available under this scheme?

Women entrepreneurs can avail of loans up to ₹ 1,00,000 per beneficiary subject to, 1. NBCFDC finances 95% of the project cost, while the State Channelising Agencies (SCAs) or the borrower provide the remaining balance. 2. The maximum loan amount per Self-Help Group (SHG) is ₹15,00,000.

4. What is the tenure under the Mahila Samridhi Yojana?

The repayment tenure for loans under Mahila Samriddhi Yojana is 4 years

5. What is the rate of interest under the scheme?

The rate of interest is 1% for the SCAs and 4% for the beneficiaries.

6. I’m from a backward section of society. But I don’t have the caste certificate. What should I do?

You should apply for a caste certificate from the local government authorities to avail of benefits for backward sections under the scheme.

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