Credit Guarantee Scheme, Self Reliant India Fund, PMMY: Schemes that are helping women entrepreneurs

The surge of women entrepreneurs in India, constituting 14 per cent of the total, reflects their growing empowerment and economic contribution. Amidst this transformation, pivotal schemes like the Credit Guarantee Scheme, Self Reliant India Fund, Pradhan Mantri MUDRA Yojana (PMMY), and Stand-Up India Scheme have emerged as catalysts, empowering women entrepreneurs with financial support and targeted assistance. These initiatives collectively fuel innovation, bridge gender gaps, and drive economic growth, underscoring their vital role in shaping an inclusive and prosperous entrepreneurial landscape.

Credit Guarantee Scheme

This scheme acts as a financing lifeline for Micro and Small Enterprises (MSEs) by channelling collateral-free credit through banks and financial institutions. The essence of this initiative is to alleviate the lending risk for these enterprises, facilitating their access to funding. Banks and financial institutions are granted funding assistance under this scheme, which, in turn, allows them to extend collateral-free credit to MSEs. The objective is to make credit available to MSEs for loans up to Rs. 100 lahk without the need for collateral or third-party guarantees.

Self Reliant India Fund

Embedded within the Atmanirbhar Bharat package, Self-Reliant India (SRI) Fund emerges as a substantial contributor to the growth of Micro, Small, and Medium Enterprises (MSMEs). This fund operates through a dual structure of mother fund and daughter-fund, focusing on equity or quasi-equity investments. A notable component of this fund is the allocation of Rs. 10,000 crore from the Government of India to initiate equity infusion in selected MSMEs. This is further bolstered by an additional Rs. 40,000 crore sourced through Private Equity (PE) and Venture Capital (VC) funds, harnessing private sector expertise and investment to enhance the MSME sector.

Pradhan Mantri MUDRA Yojana (PMMY)

The Pradhan Mantri MUDRA Yojana (PMMY) embodies the spirit of financial inclusivity, targeting non-corporate, non-farm small and micro enterprises. Under the aegis of PMMY, loans up to Rs. 10 lakh are extended by various financial institutions, including Commercial Banks, RRBs, Small Finance Banks, MFIs, and NBFCs. To cater to diverse growth stages and funding needs, PMMY introduces three distinct products: 'Shishu', 'Kishore', and 'Tarun'. These products serve as reference points for the progressive phases of growth for beneficiary micro units and entrepreneurs.

Stand-Up India Scheme

With a core focus on fostering entrepreneurial diversity, the Stand-Up India Scheme aims to facilitate bank loans for setting up Greenfield Projects. These projects, spanning manufacturing, services, and trading sectors, aim to provide a stepping stone for at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and one woman borrower per bank branch. The eligibility criteria encompass SC/ST and/or woman entrepreneurs above 18 years of age, emphasising the role of these underrepresented segments in driving economic transformation.