Mahila Samriddhi Scheme or MSY Features, Benefits, how to apply, application document
Today, women are starting a business from their home, apart from handling household chores. As per the present situation of our country, women must start to work so that they can become financially strong. In this regard, the Central Government has come up with the initiative to help enterprising women, is called ‘Mahila Samridhi Yojana’. According to this scheme, women will be offered loans with which they can start their own business venture and fulfill their dreams. Below are mentioned some other details related to the above mentioned scheme.
What are the objectives of Mahila Samridhi Yojana
The main focus of launching the scheme is to offer financial help to women of the state. This will be done with help from National Backward Classes Finance and Development Corporation or NBCFDC who can cater to the micro finance requirement of the women entrepreneurs. It will help mainly women who belong to the backward class of society. The loan amount will either be given to women or through the self-help groups of SHG’s.
What are Self Help Groups?
The equal castes along with related groups of poor family have come together to form the self-help group. They have started to save common funds of the members and help the needy person and women.
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What are Channel Partners?
The channel partners are important to handle different field tasks. In addition, they also encourage the economically backward groups and the financially weak sections. The groups are trying to offer financial help under the scheme to the needy person. Also, the channel partners are the National Backward Finance and Development Corporation.
However, the maximum number of people forming a self-help group can be 20. In the groups, 60% of people belong to the backward section and the rest 40% belong to the weaker sections of the society mainly belonging to the disabled, minority or SC category.
What are the benefits of the scheme?
- Help for low caste and backward classes :- By successful implementation of the scheme, the central government will be able to extend help to the women belonging to backward and low caste groups.
- Promoting business venture for women :- With the help of the scheme, the women entrepreneurs will get help from the central government. This shall help increase the number of employed women who can start their business venture and become self-dependent.
- Enhancing employment opportunities :- By giving help to women entrepreneurs, it shall help to create better employment scope for women and improve their condition.
- Suitable investment for scheme :- Under the above said scheme, the beneficiary women need not pay any money for the project up to rupees 2 lakhs.
- Better scheme supervision :- The scheme will be supervised by the Ministry of social Justice and empowerment development for the help of women of the country.
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Details of loan and interest rate for the scheme
- Loan amount :- Women entrepreneurs who are planning to take loan under the above said scheme can take scheme irrespective of the type of the business. Through, this, they can generate income and however, the maximum loan amount is rupees 60000.
- Disbursement of the loan amount :- The regional rural banks, nationalized banks and the state channelizing agencies are responsible to offer the loan amount to the women entrepreneurs. According to the scheme guidelines, 95% of loan will be given under the scheme whereas the remaining will be offered by the state agencies. However, the women have to use the loan amount with 4 months from the date when they have received the loan.
- Payment of loan amount :- As per the scheme, the beneficiaries will get a time period of 4 years along with extended probation of 6 months within which they have to repay the loan amount. They can repay the loan after every 3 months and it will be calculated from the date on which the beneficiary starts to repay the first loan installment.
- Interest rate :- The beneficiaries need to pay interest on the loan they take and it will be given by the NBCFDC at 1% rate. On the other hand, the interest rate for the loan given by state agencies will be 4%.
What are the eligibility criteria for the scheme?
- Women of backward group – Women who belong to the backward caste will get timely notification from state and central government. In case, they belong to the group below the poverty level, they are eligible to get the scheme benefits.
- Income details – For women whose annual income is less than rupees 3 lakhs will be eligible to get the scheme perks. In case, the annual income of the woman’s family is rupees 1.5 lakhs or even less, the beneficiary will get half of the loan amount from state agencies or bank.
- Age limit – The women should have a minimum age of 18 years to be eligible to avail the scheme benefits.
- Criminal background – If the beneficiary has any criminal background, she will not be eligible to get the benefits of the scheme.
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Documents required for application in Mahila Samridhi scheme
- Identification and residential certificate – Beneficiaries have to produce their identification details such as ID card, ration card, Aadhaar card along with suitable residential proof.
- Proof of joining self-help group – If women wish to get the scheme benefits, they have to produce membership cards as proof of their claim that they belong to the self-help groups.
- Details of income certificate – Only the women whose income falls under the given limit will be eligible to avail the scheme benefits. However, they need to produce an income certificate to justify their claim.
- Age documents – Women should produce documents of their age such as birth certificate proof at the time of registration for the scheme.
- Caste certificate – The scheme is meant for minority and backward classes, women belonging to CS category should provide suitable documents to get the scheme benefits.
- Bank account details – The women need to provide bank details such as IFSC code, account number and the like. It will be required as the beneficiary amount will be credited directly in the linked bank account.
- Passport size photo – At the time of filling up application form for the scheme, they have to produce passport size photographs that should be attached with the application form of the scheme.
What are the steps to follow to apply for the scheme?
- To apply for the scheme, the entrepreneurs have to visit the State Channelising Agency and get the application form for the scheme.
- Now, you have to fill up the application form with relevant details. In the form, you can also mention if you need training and employment by choosing suitable option from it.
- After filling up the form, you have attached photocopy of the required documents and it to the office of state channelizing agency for further scrutiny.
- The documents you have attached will be checked by the concerned officer before the women is considered eligible to get the scheme benefits.
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Q : Is it possible for a woman belonging to general category to get the loan from the scheme?
Ans : No, as it has been declared that only women belonging to backward or scheduled caste are eligible to get the scheme benefits.
Q : Is it mandatory for the women to be below poverty line?
Ans : Yes, it is necessary that women beneficiaries should belong to the BPL category.
Q : Being part of self-help group, it is possible to get a loan if women do not have an Aadhaar card and ID proof?
Ans: No, the women who wish to get the scheme benefits need to furnish ID details such as Voter ID card, Aadhaar card and the like which are easy to get these days.
Q : What is the final repayment time for the loan?
Ans : The loan given under the above-said scheme should be repaid within 48 months within 3 to 3 installments. In addition, 6 month probation is also offered under the scheme.
Q : Who are the target group of the scheme?
Ans : In Mahila Samridhi Yojana, women from backward classes and the ones who are twice included below the poverty line can avail benefits from the above scheme.
Q : What is the term of use of loan for the above-said scheme?
Ans : The term of use of the loan money will begin from the day woman get the loan money. From the date, it remains valid for the next 4 months. During this time, the beneficiary can use the loan amount and complete the steps to be followed to use the amount.
Q : Is it possible to get scheme benefits without caste certificate and belonging to the backward class of the society?
Ans : As per scheme rules, the caste certificates are mandatory to be produced at the time of applying for the above-said scheme.
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