Mahila Samridhi Yojana – Loan Scheme


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Mahila Samridhi Yojana

If there’s anything that the current times have taught us, it is that when given an opportunity, women can achieve anything. They have the natural force to overcome any obstacle and strive to achieve their dreams. With the current changing trends, women are no longer seen as just potential wives but as future CEOs. They have proved their mettle in every field.

Even after that sadly, several women especially of the minority section, still face the stigma of the society and face hurdles like financial incapability, low-income strata in the society which becomes a hurdle in their dreams.

To overcome this, the Ministry of Social Justice and Empowerment brought forth the Mahila Samridhi Yojana.

What is the Mahila Samridhi Yojana?

The Mahila Samridhi Yojana was introduced on October 2nd, 1993 as a micro-finance policy to uplift rural women. The policy is oriented for underprivileged women belonging to backward classes to provide them with some financial support when they are unable to do it themselves. Ever since its initiation, the policy has gained popularity among rural women and women belonging to financially deficient sections of the society to fulfil their dreams.

The target groups of Mahila Samridhi Yojana:

Self-help groups: Mahila Samridhi Yojana targets to uplift and support the SHGs particularly involving women. These are the autonomous economically co-dependent group of individuals.

Women belonging to backward classes: One of the crucial targets of this scheme is the backward community women especially the SC or ST category.

Objectives of Mahila Samridhi Yojana:

  • The major goal of the policy is to inspire an entrepreneurial mindset among women belonging to village areas or those from backward classes and minority groups.
  • To help support women who are unable to start their own business/careers due to lack of financial help.
  • To motivate women belonging to marginalized groups like scheduled castes or scheduled tribes to move past social taboos and achieve their dreams.

Salient Features of the Mahila Samridhi Yojana

  • The policy is unique for providing finance-related support to an individual woman as well as to self-help groups or SHGs.
  • The policy provides loan to women self-help groups with a strength of 20 members.
  • The loan amount which can be availed by a single beneficiary woman is limited up to Rs.60,000.

Benefits of Mahila Samridhi Yojana

The Mahila Samridhi Yojana has proven to be an important stepping stone in bringing solidarity and uniformity in society by targeting those who lack in receiving equal opportunities.

Some of the essential benefits of the policy are as follows:

  • The improved financial status of rural women.
  • Helps support socially deprived individuals in developing their entrepreneurial endeavors.
  • Special assistance to families belonging to the BPL category.
  • The policy has helped create more employment opportunities for the minority class.
  • Encourage and create powerful Women Entrepreneurs who are financially independent and accomplished.
  • A hassle-free registration process with convenient document exchange.
  • Helps empower women and gives them a confidence boost.

What are the loan credentials in Mahila Samridhi Yojana?

  • When an eligible candidate applies for a loan under the policy, out of the total loan which is sanctioned, about 95% portion will be covered by the Mahila Samridhi Yojana policy (mentioned under the policy wordings) while the remaining 5% portion of the loan can be aided either by the beneficiary herself or through State Channelizing Agencies (SCAs).
  • The policy period is 4 months.
  • The policy mandates that the beneficiary will pay the loan debt amount in 3 years and 6 months known as the loan repayment period.
  • Policy issues a moratorium period offering debt relief of 3 months.

What are the interest rates of Mahila Samridhi Yojana?

The amount sanctioned per Beneficiary

Rate of Interest

If provided by SCA                       If made by the beneficiary


Rs. 1,40,000

1% per year.

4% per year.

Eligibility criteria required for Mahila Samridhi Yojana

As the scheme is specific in its target group, the eligibility criteria are peculiar and non-negotiable.

Some of the key guidelines for eligibility are as follows-

  • Only women belonging to minority sections and Self-help groups are eligible to claim a loan under the policy.
  • The minimum age required for eligibility is 18 years.
  • Women belonging to BPL families are eligible to avail Mahila Samridhi Yojana Loan.
  • In terms of financial eligibility, the policy issues a loan to those women who earn or whose family income is under Rs. 3 Lakhs annually.
  • A woman claiming loan under the policy should be clear of criminal history or felony record.
  • The policy ensures a fund release amounting to about half of the total loan in case the annual income of the woman’s family is below Rs. 1.5 Lakhs.

Application procedure of Mahila Samridhi Yojana:

Nowadays, the eligible candidates can apply for the scheme using both online or offline procedures.

Online procedure:

  • The candidates can visit the official website – or of the scheme or they can apply through the state government portals.
  • The candidate can download the Mahila Samridhi Yojana application form from the webpage.
  • Complete the form by providing essential information and submitting the required documents.
  • The application can be submitted for further processing online.
  • Nowadays, candidates can also track their application procedures via SMS.

Offline procedure:

  • The eligible candidate can visit their nearest SCA office or any banks branches to collect the Mahila Samridhi Yojana application form.
  • The candidate should then complete the forms and submit it by attaching the required documents.
  • The candidate should take note and specify the choice of training i.e. vocal language choice and training method choices.
  • The SCA then carry out the verification and approval process. The authentic applications are sanctioned with loan.

Documents required to claim Mahila Samridhi Yojana

The policy claim process is simplistic and does not require many documents. For obtaining a loan under the Mahila Samridhi Yojana, the following documents are to be submitted:

  • Identity proof of the candidate – Aadhar Card, Voter ID card, Driver’s license, etc.
  • Applicant’s Aadhar Card.
  • In the case of SHGs, the membership card of the self-help group has to be presented.
  • A certificate showcasing the annual income of the applicant.
  • A completed application form of the policy.
  • Evidence of the caste to which the applicant belongs- Caste certificate.
  • Applicant’s account book from the respective bank.
  • A recent passport size photo.
  • Address proof such as PAN card, Electricity/water bill, or ration card.

NOTE- In case the applicant is found forging false documents, the application will be rejected.

Mahila Samridhi Yojana comes to the rescue of those women who besides having ambitions and desires to become entrepreneurs, fail to work because of their background. The policy proves to be the wing beneath those women’s wings and helps dreams come to life one entrepreneur at a time.

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Mahila Samridhi Yojana Loan Scheme FAQs:

1. What is the minimum age required to apply for Mahila Samridhi Yojana?

The starting age of eligibility is 18 years.

2. Is a woman belonging to the general category eligible to claim MSY policy?

No, the Mahila Samridhi Policy is designed only for women belonging to marginalized groups and scheduled castes.

3. What is the utilization period of the Mahila Samridhi Policy once a loan has been claimed?

Once a candidate receives the loan, she has to utilize it under a time of 4 months.

4. Is it compulsory to belong in the BPL category to apply for Mahila Samridhi Policy?

Yes, the policy only provides funds for the BPL families.

5. What is the time limit for repayment of a loan under Mahila Samridhi Policy?

The loan payback period for the policy is 3 years and 6 months.

6. Is it possible to apply for MSY online?

Yes, the eligible candidates can apply for MSY online by downloading the application form.

7. Is it compulsory to have a caste certificate to apply for MSY?

Yes, the procedure for loan sanctioning requires the candidate’s caste certificate. If the individual doesn’t have one then it is advised to visit the designated department.

8. Is it compulsory to submit Aadhaar card for MSY loan application?

Yes, the loan application procedure mandates the candidates to submit Aadhaar card details for authentic identification proof.

9. Who is the loan sanctioning authority for MSY?

The SCAs or Banks are the major sanctioning authorities that provide loans to the eligible candidates.

10. What is the upper limit of loan amount in MSY?

The scheme allows a maximum of Rs1,00,000 per individual or loan beneficiary.

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