Mahila Samriddhi Yojana (MSY)

On October 2, 1993, the Ministry of Social Justice and Empowerment Department of the Government of India launched the Mahila Samridhi Yojana (MSY) initiative. This is a micro-financing programme aiming towards the empowerment of women from underprivileged backgrounds or economically backward areas. 

This initiative enables women to establish their own income-generation activities. Through this scheme, these women can apply for a loan at a nominal interest rate to fulfil their dreams and goals and gain financial independence.

Women who need money to create their own businesses are eligible for this loan programme, which is mainly offered by State Channelizing Agency (SCAs), Regional Rural Banks (RRBs), and Nationalised Banks.

The two main targeted beneficiaries of Mahila Samridhi Yojana are:

• Self-help groups (SHGs): The Mahila Samridhi Yojana aims to strengthen and assist SHGs, particularly those that include women. These people make up the autonomous, economically disadvantaged category. 

• Women belonging to economically and socially backward classes (targeted groups): Women from the underprivileged classes are considered, particularly those who fall under the SC or ST category.

The objectives of introducing this scheme are manifold, as mentioned below: 

• To encourage women belonging to minority groups from rural regions and underprivileged classes to adopt an entrepreneurial attitude 

• To help these women meet their entrepreneurial goals by providing microfinance loans at lower interest rates.

• To encourage women from scheduled castes or scheduled tribes or any other minority populations to pursue their aspirations 

• To encourage women to overcome social stigma and gain financial independence  

• To assist women who are unable to establish their own businesses or careers owing to a lack of financial assistance

Here are some features of the Mahila Samridhi Yojana scheme:

• The scheme offers financial assistance to self-help organisations consisting of up to 20 members, helping them start their business from scratch

• This plan also provides support to single women from low-income families

• The maximum loan amount that a single beneficiary woman may get is ₹1.25 Lakhs

• The SHGs or the recipients directly receive the loans provided by this scheme

The benefits that come with this scheme are as follows:

• This scheme helps women in rural areas to improve their financial standing

• People who are socially isolated can establish an independent business venture  

• BPL (Below Poverty Line)-eligible households can receive special help

• More prospects for employment are created for minorities 

• Can increase the number of female entrepreneurs and women-owned businesses

• The application and documentation process encourages most small businesses to apply

The scheme is open to women who fall below the poverty line or are under the central government or state government-approved categories. The following list includes the criteria of eligibility for such women business owners to qualify for this scheme:

• Applicant must be 18 years of age or more

• The applicant's annual household income cannot be more than ₹3 Lakhs

• For SHGs, a minimum of 60% of members must be from the backward class category.The remaining 40% of members of the SHGs can belong to other disadvantaged sections, such as minorities, SC, ST, and so on

• Any woman requesting a loan under the scheme should be free of any felony convictions or criminal histories

Here is the list of documents required in addition to the application form:

• Address Proof

• Identity Proof

• SHG membership ID

• Caste certificate (if applicable)

• Income Certificate from a competent authority

• Aadhaar Card

• Bank Account details

• Recent Passport Size Photographs

For further queries or other issues related to this scheme, you can contact the NBCFDC through the following channels:

• Toll-free number: 18001023399 (Timing:  Monday to Friday between 10 AM and 5 PM)

• Other Telephone Number: +91 11 45854400

• Email ID: info@nbcfdc.gov.in