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.

Rate of Interest

Interest rate for loan under Mahila Samridhi Yojana is tabulated here.

Loan Maximum Limit	Interest chargeable from
Rs.60000 per Beneficiary	SCA	Beneficiary
Rs.60000 per Beneficiary	1% per annum	4% per annum

Repayment of Loan

Loan need to be repaid in quarterly instalments within 4 years including the moratorium period of six months on the recovery of principal.

Eligibility for Mahila Samridhi Yojana

Eligibility criteria to obtain benefits of Samriddhi Yojana are given in detail here.

Women entrepreneur belonging to backward classes only can apply for this scheme.
Age of the woman should be 18 years
Members of Backward Classes living below double the poverty line are eligible.
Annual income of the women should be less than Rs.3 Lakhs per annum

Note: The SCAs/Banks will release up to 50% of total funding to women with annual income up to Rs.1.50 Lakh

Documents Required

Following documents need to be furnished for obtaining MSY loan.

Proof of residence (Electricity bill or ration card can be furnished)
Proof of Identity
Self group membership card
Income certificate
Aadhaar Card
Caste certificate
Bank account book

Application procedure

Procedure to apply for Mahila Samriddhi loan scheme is explained in detail below. Step 1: Eligible applicant needs to visit nearest SCA office, apply on prescribed form for Mahila Samridhi Yojana. [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2018/07/Application-Form.pdf" title="Application Form"] Step 2: Fill all mandatory details in the application form and mention the needs and choice of vocation and training requirements, if any. Step 3: Submit the application along with all required documents to SCA centre. Step 4: After reviewing the application, the loan will be sanctioned by SCA.