Mahila Samridhi Yojana

Ministry of Social Justice and Empowerment Department of Government of India has introduced Mahila Samridhi Yojana for providing loan to women entrepreneur. Under this scheme Government provides microfinance to women entrepreneur belonging to the target group (backward classes). This article examines about Mahila Samridhi Yojana application procedure in detail.

Objective of Mahila Samridhi Yojana

In order to cater the Micro Finance needs of small entrepreneurs belonging to the target group, the National Backward Classes Finance and Development Corporation (NBCFDC) provides loans through self help groups (SHGs) by State Channelising Agency (SCA) under Micro Finance Scheme.

Self Help Groups (SHGs)

Economically homogeneous and affinity group of poor people voluntarily formed Self help groups to save and to contribute common funds to its members. Channel Partners play a vital role through their field officers, encouraging people of the target group in forming Self help groups and get financial assistance under Mahila Samriddhi Yojana of NBCFDC. Maximum number of women in one SHG is 20. In a SHG 75% of members can be from Backward Classes and the remaining 25% members may be from other weaker section like SC or Handicapped. Know more about SHG

Loan under Mahila Samridhi Yojana

Loans under MSY are provided through State Channelizing Agencies (SCAs), Regional Rural Banks (RRBs) and Nationalized Banks to the target group (backward classes). MSY loan is provided to Safai Karamchari and Scavenger and their dependants for projects with a maximum project cost up to Rs.60000 for small and petty business and sundry income generating activities.

Pattern of financing

Loan will be provided up to 95% and balance 5% provided by the State Channelizing Agencies (SCAs) or Beneficiary contribution. Utilization Period is 4 months from the date of disbursement of the loan.