Mahila Samridhi Yojana

Ministry of Social Justice and Empowerment has introduced Mahila Samridhi Yojana for providing loan to women entrepreneur.

More on news:

• National Backward Classes Finance and Development Corporation (NBCFDC) provide loans to small entrepreneurs belonging to the target group (backward classes) in order to cater the Micro Finance through self-help groups (SHGs) by State Channelizing 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.
• 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.

Loan under Mahila Samridhi Yojana (MSY)

• Loans under MSY are provided through SCAs, Regional Rural Banks (RRBs) and Nationalized Banks to the target group.
• 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.

Implementation

• 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 MSY of NBCFDC.

Pattern of financing

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

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

• 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

National Backward Classes Finance and Development Corporation (NBCFDC)

• It is an organization under the aegis of Ministry of Social Justice and Empowerment.
• It promotes economic and developmental activities for the benefit of Backward Classes and to assist the poorer section of these classes in skill development and self-employment ventures.
• It provides financial assistance through SCAs nominated by the State Governments/ UTs.
• It also provides Micro Financing through SCAs/ SHGs.
• The Corporation can assist a wide range of income generating activities to assist the poorer section of these classes in skill development and self-employment ventures under following broad sectors :

1. Agriculture and Allied Activities
2. Small Business / Artisan and Traditional Occupation
3. Service / Transport Sector etc.
4. Technical and Professional Trades/Courses