EMPOWERING WOMEN ENTREPRENEURS: AN OVERVIEW OF THE STREE SHAKTI YOJANA UNDER THE SME SCHEME

• Publish on Jan 18, 2025
• Read Time 5 min

Over the last couple of years, the business sector in India has been undergoing a paradigm shift, with an increasing number of women assuming ownership and leadership positions. The Indian government has launched several initiatives to capitalize on this momentum, such as the Stree Shakti Yojana, a flagship program targeting women entrepreneurs. The scheme falls under the SME (Small and Medium Enterprise) schemes, rendering essential funding and assistance to enterprises run by women.

There are several unique features of the scheme that make it an effective tool for women entrepreneurs:

• Interest Concession: Women entrepreneurs can avail of a discount of 0.05% on the interest rates applicable to loans.
• Flexible Loan Amounts: Depending on the type of business and loan requirement, this scheme provides loans of up to ₹50 lakh.
• No Security for Small Loans: No collateral is required for loans up to ₹10 lakh, making it accessible to women who do not own significant assets.
• Sector Flexibility: Institutions from manufacturing, service, or trade sectors can benefit from this scheme.
• Streamlined Application Process: A direct process ensures that women can access funds without excessive bureaucratic red tape.

Stree Shakti Yojana Eligibility Criteria

The eligibility criteria for the Stree Shakti Yojana are as follows:

• Ownership and Control: The company must be owned and operated by women, with at least 51% ownership held by women.
• Development Program Participation: Candidates must have participated in entrepreneurship development programs run by approved organizations.
• Registered Business: The business must be registered under the MSME (Micro, Small, and Medium Enterprises) category.

Benefits of Stree Shakti Yojana for Women Entrepreneurs The Stree Shakti Yojana provides various direct advantages to women entrepreneurs:

• Empowerment: The scheme plays a critical role in empowering women financially to start and expand their businesses.
• Lower Cost of Capital: Interest concessions and no requirement for collateral for smaller loans mean women can focus more on business growth rather than loan repayment.
• Promoting Innovation: The scheme promotes an entrepreneurial ecosystem that encourages innovation in various sectors.
• Employment Generation: Women entrepreneurs create job opportunities, fostering inclusive economic growth.

Stree Shakti Yojana Application Process

The Stree Shakti Yojana application process is straightforward and convenient:

• Select a Bank: The scheme is offered through several public sector banks, such as State Bank of India (SBI), Bank of Baroda, and Punjab National Bank (PNB).
• Compile Documents: Applicants need to provide documents like a business plan, business ownership proof, identity proof, etc.
• Submit the Application: Fill out the loan application form at the selected bank, where employees assist applicants through the process.
• Submission: Submit all required documents to the bank. After evaluation, once the application is approved, funds are disbursed directly to the applicant's account.

Success Stories of Women Entrepreneurs Women in India have witnessed a significant transformation since the implementation of the Stree Shakti Yojana. For instance, Meera Sharma, a Rajasthan-based small-scale textile entrepreneur, expanded her operations, hired more staff, and began exporting her products internationally with a loan under the scheme.

Similarly, Pune-based Ananya Gupta used the loan to start an organic farming business, selling produce to big supermarkets and empowering other women in her community to pursue entrepreneurial dreams. While the Stree Shakti Yojana offers numerous benefits, challenges such as lack of awareness among women, especially in rural areas, and delays in approval processes persist. Collaborative efforts from the government, banks, and NGOs are essential to increase awareness and ease access.

Incorporating digital platforms for handling applications and approvals can reduce delays and make the scheme more accessible to tech-savvy entrepreneurs.

Stree Shakti Yojana offers hope to women entrepreneurs in India. Encouraging women to become entrepreneurs is a practical way to enhance economic growth, leveraging their creativity and innovation. This initiative promises unprecedented growth and inclusivity in India's entrepreneurial ecosystem as more women harness its benefits.

The economic case for women’s empowerment is as strong as the social case. Programs like the Stree Shakti Yojana bring us closer to a future where women entrepreneurs break new ground, driving the formation of a wealthier and fairer society.

FAQs

1. How can I apply for Stree Shakti Yojana? You can apply through public sector banks by submitting the required documents and application form.
2. What are the interest rates under the scheme? The scheme offers a concession of 0.05% on prevailing interest rates for women entrepreneurs.
3. Is collateral required for loans under this scheme? No collateral is required for loans up to ₹10 lakh.
4. Who is eligible for the Stree Shakti Yojana? Women-owned and operated businesses with at least 51% ownership, registered under MSME, and with participation in approved entrepreneurship programs.
5. How does SME Ecofy support women entrepreneurs? SME Ecofy offers tailored financial products, advisory services, and business development support to women entrepreneurs to help them thrive in competitive markets.