With the objective to encourage women entrepreneurs and give impetus to their business journey, the Ministry of Social Justice and Empowerment, the Government of India has implemented a strategic policy – Mahila Samridhi Yojana. Under the visionary scheme, the government provides microfinance to women entrepreneurs hailing from marginalized sections of the society – backward classes. Designed considering the women empowerment, the flagship scheme is being implemented by a wide range of channel partners nationwide. Targeted women beneficiaries are identified and given loan either directly or in the form of Self-Help Groups (SHGs).
Bank and NBFCs Interest Rates
The guidelines under the Mahila Samridhi Yojana (MSY) clearly signify that the loan to the tune of 95% will be sanctioned, while the balance 5% will be funded by the State Channelizing Agencies (SCAs) or beneficiary contribution. Guidelines indicate that the utilization period for the loan received is 4 months, starting from the date of disbursement of the loan.
Limit of Loan
|Rs. 60, 000 per beneficiary||SCA||Beneficiary|
|1% per annum||4% per annum|
Loan Repayment Tenure: 3 years and 6 months
Moratorium Period: 3 months
As the MSY scheme is dedicated to bringing about a turnaround in the lives of women belonging to the marginalized sections of the society, stringent eligibility criteria is in place to ensure fair disbursal of the loan. The eligibility criteria comprise:
- 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.
The MSY loan has been receiving an overwhelming response from the women hailing from every nook and corner of the country. There are plenty of reasons to corroborate the fact, minimal documentation is one among them. The following documents are required to avail the loan facility intended to empower women and lift their socio-economic status:
- 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 and benefits
The flagship scheme of the Ministry of Social Justice and Empowerment, the Government of India has been instrumental in transforming the lives of hundreds of women across India. Some of the benefits include:
- Lifts the socio-economic condition of the beneficiary
- Plays a role in mainstreaming of the poverty-ridden family
- Supports in generating employment opportunities
- Cultivates entrepreneurship among women
- Empowers the women, make them self-reliant
- Minimal documentation
- Raises the self-belief in women
Other significant information
Self Help Groups (SHGs): Economically aligned group of people who voluntarily develop a group to raise their income by saving and contributing to group activities.
Channel Partners: Channel partners are represented by competent professionals in the field; help the group and its members in economic activities and in availing the MSY loan.
Member Ration: As per the rules and regulations, maximum women members allowed in an SHG are – 20. The 75% of members should be from the backward classes as mandated by the eligibility criteria, while the remaining 25% of women members could be from other weaker sections – Scheduled Caste or physically handicapped.
Loan Disbursal: Loan is disbursed through the State Channelizing Agencies (SCAs), Regional Rural Banks (RRBs) and the nationalized banks to the beneficiaries.
Ques.1: I’m a general category girl; my mother wants to obtain the MSY loan. Is it possible?
Ans: The guidelines strictly stipulate that the beneficiary should belong to backward classes or scheduled caste.
Ques.2: Is it mandatory to be from a Below Poverty Line (BPL) section to avail the MSY loan?
Ans: Yes, the woman beneficiary should be from the BPL category.
Ques.3: My cousin sister is part of an SHG. She doesn’t hold Aadhar and ID proof. Can she avail the loan?
Ans: Obtaining Aadhar and other ID proof like Voter ID card aren’t tough to obtain these days. Get connected with the concerned authority. Without Aadhar and Voter ID card, MSY loan can’t be sanctioned.
Ques.4: What is the loan repayment period?
Ans: The loan obtained under the MSY scheme can be repaid in quarterly instalments within 48 months, including the six months moratorium period available under the scheme.
Ques.5: What does the target group mean when we talk about the Mahila Samridhi Yojna?
Ans: The Mahila Samridhi Yojna (MSY) is intended for women belonging to backward classes of the society and living below double the poverty line.
Ques.6: What’s the utilization period of the MSY loan?
Ans: The utilization period of the MSY loan begins from the date of the disbursal. It is 4 months. Within this period, the beneficiary has to utilize the fund and complete the utilization formalities.
Ques.7: I’m from a backward section of the society. But I don’t have the caste certificate. What should I do?
Ans: As per the protocol of the MSY, caste certificate issued by the competent authority is mandatory. Approach the designated department to obtain the caste certificate.