MSME Schemes: Loans Available for Women Entrepreneurs

Author: Shubham Chauhan

MSME Schemes: Loans Available for Women Entrepreneurs

OVERVIEW Micro Small and Medium Enterprises (MSME) are the backbones of the Indian economy. Over the past few decades, the MSME sector has surfaced as a dynamic and vibrant sector of the Indian economy. These enterprises provide employment at the rural level at low capital investment. MSMEs are distinctive from large industries in a way that it requires less capital investment; however, it gives an employment opportunity to a large sum of people. MSME sector is the second-highest employment provider after the Agricultural sector of the country. MSMEs have also led to a growth in the number of women entrepreneurs

Over the years, India has seen a shift from familybased business to innovations and startups by young budding entrepreneurs. Government has launched several MSME schemes to support new ideas which lack the capital to start a business. On a good note, over the past years, India has seen positive growth in the number of women entrepreneurs. Girl education is being emphasized on by the government of India, which is ultimately boosting the confidence of Indian women and making them more ambitious, self dependent and shaping them into leading women entrepreneurs.

WOMEN ENTREPRENEURS IN MSME SECTOR AN INTRODUCTION Under the scheme, women entrepreneurs are covered under Special Category and are entitled to 25% and 35% subsidies for the project set up in urban and rural areas respectively.

MSME Schemes: Loans Available for Women Entrepreneurs

Over the past few years, India has seen a growth in the number of Indian women pursuing a career as an entrepreneur. In present times Indian women are educated, smart, talented, ambitious and are coming out in large numbers to start up their business ventures. Government is playing its part in empowering women and in promoting more women entrepreneurs.

MSME Schemes: Loans Available for Women Entrepreneurs

Various banks and institutions provide financial support to aspiring women entrepreneurs in the form of loans, schemes, etc. Aditi Gupta founder of Menstrupedia, Chitra Gurani Daga, co-founder of Thrillophilia are some of the leading women entrepreneurs of the country.

MSMEs have led to women empowerment on a global platform. Indian Government has been making continuous efforts in transforming the roles of Indian women outside the four walls of their home.

MSME SCHEMES AND LOANS AVAILABLE FOR WOMEN ENTREPRENEURS MSMEs create a majority of new jobs and help in the economic progress of the country. Women are also taking equal part in entrepreneurship ventures. Although the number of women business owners is substantially less the male entrepreneurs in India, still Indian has shown some improvement in the growth of women entrepreneurs. To strengthen women empowerment in the business sphere, both Central and State Government have launched a financial constituent to uplift women entrepreneurship in India.

MSME Schemes: Loans Available for Women Entrepreneurs

MSME Schemes For Empowering Women Entrepreneurs TRADE-RELATED ENTREPRENEURSHIP ASSISTANCE AND DEVELOPMENT (TREAD)

MSME Schemes: Loans Available for Women Entrepreneurs

Women have been among the oppressed section of our country in many spheres of life. The government launched a scheme titled Trade Related Entrepreneurship Assistance and Development (TREAD) which aims at economic empowerment of women. As per this scheme, government grants up to 30% of the total project cost as decided by the lending institutions which finance the rest 70% as a loan to the applicant women.

MSME Schemes: Loans Available for Women Entrepreneurs

Women those who are illiterate, poor and are not able to provide adequate security as demanded by the bank, government grant and the loan provided the lending institutions is routed through NGOs engaged in helping poor women. The government also grants up to Rs 1 lakh per program to training institutions and NGOs for giving training to women entrepreneurs.

Mahila Coir Yojna

This scheme launched by the government is a women-oriented employment scheme in the coir industry, to provide employment opportunities to rural women artisans. Under this scheme, motorized rats are distributed for spinning coir yarns to women artisans. Women spinners are trained for about two months in spinning coir Board. The spinning coir Board also gives subsidy on traditional motorised rats.

Mahila Udyam Nidhi Scheme This scheme of Punjab National Bank supports women those who wish to start a new small-scale venture. Under this scheme, the women entrepreneurs are assisted for setting up new projects in the small scale sector. Already existing small scale industrial units undertaking technology up-gradation can also benefit from the scheme.

Mahila Saashaktikaran Abhiyan This scheme of Punjab National Bank provides financial assistance to women those who intend to establish a small and micro-enterprise in the non- farm sector.

Syndicate Bank

To cater to women entrepreneurs Syndicate bank launched a scheme named Synd Mahila Shakti. This scheme launched by the Syndicate bank targets both new and current women entrepreneurs. This scheme offers cash credit to meet the working capital requirement or a loan scheme up to a time period of ten years. Any business seeking this loan should have women owning 50% of the financial holding.

CONCLUSION The women have achieved immense success over the years in changing the perception of a male-dominated society. In present times women have the skill, talent and moreover a zeal to create something new. Women are in no way behind the man and are excelling in every sphere of their life. In the past few decades, women are entering the field of entrepreneurship and excelling in it. Government is offering various schemes to help out women entrepreneurs in achieving their goals. MSME sector has also been offering new opportunities to women at the grass root level.

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