Mahila Samriddhi Yojana Benefits and How Women Can Apply

We see them everywhere: women shattering glass ceilings and taking the lead in every industry. Sometimes, all it takes is a little nudge to make their dreams into a reality. The Mahila Samriddhi Yojana (MSY) project, launched by the National Backward Classes Finance and Development Corporation (NBCFDC), focuses on women, particularly those from poor backgrounds, and provides them with the resources they need to succeed. Let’s discuss in detail how women can exactly understand and benefit from this scheme.

What is the Mahila Samriddhi Yojana?

Mahila Samridhi Yojana Scheme is a plan designed to help women entrepreneurs from underprivileged or economically weaker sections of society. Under this strategy, the government offers microfinance (banking service for people or groups who wouldn’t be able to get other financial services) to female entrepreneurs directly or through Self-Help Groups (SHGs are informal groups of people that face similar problems).

What are the Mahila Samriddhi Yojana Features?

• National Scheduled Castes Finance and Development Corporation (NSFDC) offers Mahila Samriddhi Yojana for setting up businesses that cost up to Rs. 1,40,000/-.

• Maximum Loan Limit: NSFDC offers loans up to 90% of the project cost, with a maximum of Rs.1.25 lakhs.

• Rate of Interest:  The NSFDC lends money to Scheduled Caste Agencies(SCAs)/Channelising Agencies (CAs) at a low-interest rate (2%), then lends this money to women starting businesses (beneficiaries) at a slightly higher rate (6%) to cover their own expenses.

• Repayment Period: A three-month gap will be allowed at the start of the business before the loans need to be repaid, which will then be paid in quarterly installments over a maximum of three years.

For example, Rekha, a resident of a small village, has always wanted to turn her passion for knitting into a successful business. She was unable to purchase the additional wool and equipment she required due to financial constraints.
This is where the Samriddhi Yojana came in as a game changer for Rekha. Rekha could qualify for a loan because her knitting project was under MSY’s Rs.1,40,000 ceiling and had to make interest payments on 6% rate of interest.

What is the eligibility criteria for Mahila Samriddhi Yojana Scheme?

• The applicant must be between 18 and 55 years old.
• Applicable to women from economically and socially backward classes as notified by the Central/State Government.

What are the Mahila Samriddhi Yojana Scheme benefits?

• Financial assistance for business units costing up to ₹1,40,000/- is available.

• The payback duration is 3.5 years, with quarterly installments starting from the date of each disbursement and including the moratorium period. 

• Eligible beneficiaries can apply for any loan under the NSFDC scheme after repaying their MSY loans through the relevant State Channelizing Agencies (SCA).

How to apply for Mahila Samriddhi Yojana Scheme?

• To apply, visit the NSFDC’s official website or your state government portal. Download the Mahila Samriddhi Yojana application form.

• Fill out the application form completely, including your age, name, contact information, and required amount. Please submit the form together with the relevant papers.

• NSFDC provides loans to eligible target groups through its Channel Partners. 

The qualifying target group (Scheduled Castes individuals with an annual family income of up to Rs. 3.00 lakhs) must submit loan applications to the District Offices of State Channelizing Agencies (SCAs).After reviewing these applications, SCA/CA District Offices forward them to their Head Offices.

• Eligible target groups can also apply for loans through NSFDC’s other Channelizing Agencies with which NSFDC has Memorandums of Agreement.

• After the terms and circumstances of the sanction are accepted and the Prudential Norms, if applicable, are met, funds are disbursed to the SCAs/ RRBs/ Nationalized Banks for distribution to the beneficiaries. 

• The loans must be returned by the beneficiaries according to the repayment plan established by the SCAs/CAs.

What are the documents required for the Mahila Samridhi Yojana Scheme?

1. Address Proof
2. Identity Proof
3. SHG membership ID
4. Caste Certificate (if applicable)
5. Income Certificate from a competent authority
6. Aadhaar Card
7. Bank Account Details
8. Recent Passport Size Photographs

To conclude, The Mahila Samriddhi Yojana (MSY) or the  Mahila Loan Yojana bridges the gap between dreams and reality for prospective female entrepreneurs from the weaker sections of society by providing accessible loans, affordable interest rates, and flexible repayment alternatives, empowering women to overcome social stigma and achieve financial independence.

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Further read:

• 5 Post Office Savings Schemes for Women and their Benefits

• How Lakhpati Didi Scheme Empowers Women Towards Financial Independence

• How to Apply for Pradhan Mantri Matru Vandana Yojana Online and Offline