Priority Sector Schemes-

a) Credit assistance to women entrepreneurs in tiny and SSI sector

b) Credit Assistance to women beneficiaries in other Priority Sector Schemes
c) Credit facilities to women entrepreneurs under various Govt. sponsored schemes like

-Prime Minister's Rozgar Yojana(PMRY)

-Swarnjayanti Gram Swarozgar Yojana(SGSY)
-Swarnjayanti Shahari Rozgar Yojana(SJSRY)
-Differential Rate of Interest Scheme(DRI)
-Micro Credit to Self-Help Groups(SHGs)
 PNB
Finance for Women (Including Housewives)

PNB enables housewives and other ladies to supplement family incomes and
to use their spare time profitably through this scheme by taking up projects
as artisans, or under village and cottage industries, SSI, small business and
retail trade. Industrial projects requiring higher assistance may also be
considered under the scheme of financing small-scale industries.

Eligibility

Any Woman/Housewife, 18 years of age and above, living at a place for

more than 6 months, who has not been a member of any industrial co-
operative society and not indebted to any cooperative or state agency.

Amount of loan

Need based, subject to ceiling of Rs.25,000/- per borrower for purchase of

machinery/equipment etc. and meeting working capital requirement of one
operating cycle.

Margin: Nil

Security

Pledge/hypothecation/mortgage of assets created out of bank loan. No

collateral security/3rd party guarantee is required.

Rate of
Interest

11.50% p.a (PTLR)*

* This is subject to change from time to time.

Insuranc
e
Generally speaking, insurance against fire, theft, burglary and/or any other
special risk to safeguard the bank's interest in the light of circumstances
prevailing and depending upon the nature of securities/the premises in which
the security is/will be lying with bank clause, will be taken and kept in force.
and also on the bank record.

Repayment

The term loan/composite term loan will be adjusted along with interest in 36
monthly installments starting 3 to 6 months from the date of availment
depending upon generation of surplus. The borrower will be required to
open a savings fund account with the bank in which she must deposit once
every fortnight net income after spending such amount out of it as needed
for meeting the working/living expenses. She shall also undertake to
maintain such balance in her savings fund account at the end of each month
as would enable the bank to debit the said account with monthly installment
towards adjustment of the loan.

Disbursement

The amount of loan for purchase of equipment shall be paid directly to the
supplier. Advances against raw material will be made either in the form of
pay order in favour of the supplier or on the presentation of bill to the bank
indicating that the material has been delivered to the borrower. In respect of
requirements of petty items, cost not exceeding Rs.800/- per item, the
amount may be released either to the borrower or to the supplier as
convenient in cash up to Rs.3000/- for purchase of tools, equipment and raw
materials on merits without insisting for performa bills, cash-memo(s) etc.

Mahila Udyam Nidhi Scheme

This scheme aims to provide soft loan (Quasi equity) assistance to women
entrepreneurs besides usual term loans for setting up industrial units in the
small scale and tiny sector, as also for undertaking service activities eligible
for assistance under the SIDBI refinance scheme.

Eligibility

New projects in tiny and small-scale sectors for manufacture,

preservation or processing of goods (Tiny enterprises would
include all industrial units and services industries (except Road
Transport Operators) satisfying the investment ceiling.
Existing tiny and small scale industrial units and service enterprises
as mentioned above (including those which have availed of this
loan earlier) for undertaking expansion, modernisation, technology
upgradation and diversification.
Sick units in the tiny and small-scale sectors including service
enterprises as mentioned above, which are considered potentially
viable.
All industrial activities and service activities (except Road
Transport Operators) in the SSI sector.
Projects which avail of any margin money or seed/special capital
assistance under the schemes of Central/State Governments, State
Financial Corporation and other state level institutions or banks
(except State investment subsidy) are not eligible for assistance
under the scheme.

Project
Outlay

Project cost (including margin money for working capital) should not exceed
Rs.10.00 lakh in case of new projects. In the case of existing units and
service enterprises, the outlay on expansion/modernisation/technology
upgradation, or diversification or rehabilitation should not exceed Rs.10.00
lakh per project.

Amount of soft
loan
Soft loan up to 25% of the project cost with a ceiling of Rs.2.50 lakh per
project to meet the gap in equity as per prescribed Debt Equity Ratio (DER)
of 1.857:1 (excluding State subsidy which may be retained for meeting
working capital) after taking into account the promotors' own contribution
equivalent to 10% of the project cost. In addition, term loan may be
sanctioned as per usual norms under Refinance Scheme of SIDBI.

Security

Hypothecation of the articles purchased. 3rd party guarantee acceptable to

the bank. No security including collateral security will be insisted upon from
borrowers in respect of soft loan.

Rate of
Interest

Soft loan: Only service charge @ 1% p.a. is payable, which may be

retained by lending office.
Term Loan: As per interest rates advised from time to time or
structure under Refinance Scheme as fixed by SIDBI from time to
time, in case refinance has been availed. For such prevailing rates,
the concerned branch may be contacted.

Repayment

Soft loan is repayable within 10 years (inclusive of initial moratorium period

of not more than five years). However, the period of repayment of soft loan
will be co-terminus with that of term loan.

Extent of Refinance/Reimbursement of the

Soft Loan

Term Loan: As provided under the Refinance Scheme.

Soft Loan: Soft Loan is reimbursed to the extent of 100%.
Disbursement

Soft loan is to be released in accordance with terms and conditions

of sanction thereof and after the promoter(s) has (have) brought in
her (their) own contribution in full.
Bank has to act as agent of SIDBI for sanction, disbursement and
recovery of soft loan.

pnb MAHILA SASHAKTIKARAN ABHIYAN

(pnb WOMEN EMPOWERMENT CAMPAIGN)

To give necessary momentum to credit flow to women, PNB is extending

the following relaxations in advances to women beneficiaries irrespective of
the Scheme and quantum of loan to boost credit flow to women as a part of
“pnb MAHILA SASHAKTIKARAN ABHIYAN” (“pnb WOMEN
EMPOWERMENT CAMPAIGN”):

Special features of “pnb MAHILA SASHAKTIKARAN ABHIYAN”

includes several benefits in terms of softer interest rates ; lower margins
and partial waiver of processing fee. These initiatives are aimed at
making credit availability to women at easy terms, enabling better
facilities, which include

- Reduction in Interest rate by 0.25% in Non-Priority Sector

Advances
- Reduction in Interest rate by 0.50% p.a. in Priority Sector
advances.

- Margin is reduced to 10%, wherever the margin requirement is

more than 10%.

- Waiver of 50% upfront fee (wherever applicable)

Above relaxations will not be permissible in case of advances to women

beneficiaries against Bank's own deposits and in Differential Rate of Interest
Scheme.( already concessional rate of 4% p.a.)

Presently in PNB concessions are also available under PNB Festival Season
Bonanza. Some concessions may also be introduced in Weaker Sectors and
other Sectors. Only a single concession be made available as per the
option of the women beneficiaries. Simultaneous advantage of more
than one concession cannot be made available under any circumstances.

Women staff availing credit facilities under public schemes in Non

Priority Sector will be extended the above relaxations. The ralaxations
to women staff are not extended wherever the advance to them are
granted for the sake of being a staff member.

The concessions are effective from 1st October 2002 and available to all
existing as well as new Women Beneficiaries.
SIDBI

Marketing Fund for Women (MFW)

Objective

The assistance under the Fund is available to women entrepreneurs and

organisations involved in marketing of products manufactured by women
entrepreneurs to increase their reach, both in domestic and international
markets.

Eligible Borrowers

• SSI units managed by women entrepreneurs.

• Marketing related service providers Organisations / units in the
corporate / co-operative / NGO sectors which are providing support
services like internet, trade related information, advertising, marketing
research, warehousing, common testing centres, etc. to enterprises
owned and managed by women.
• Marketing related service providers Organisations / units in the
corporate / co-operative / NGO sectors which are providing support
services like internet, trade related information, advertising, marketing
research, warehousing, common testing centres, etc. to enterprises
owned and managed by women.

Consortia

Organisations / Associations / Women Groups / Marketing Consortia that

have an exclusive marketing mandate and have, as their vendor base, a wide
range of small and tiny units owned and managed by women entrepreneurs.

While the terms and conditions for sanction of assistance would be

flexible, they would essentially depend upon the soundness of the
management, track record of performance and viability of future
operations.
Development Assistance

Besides providing financial assistance as mentioned above, SIDBI could

also consider, on a selective basis, developmental assistance by way of soft
loans/grants for organising group activities and programmes such as trade
fairs, exhibitions, buyer-seller meets, seminars, workshops, training
programmes, etc. to promote marketing of products manufactured by women
entrepreneurs.

MSME-DEVELOPMENT INSTITUTE
[formerly Small Industries Service Institute]
Ministry of Micro, Small & Medium Enterprises, Government of India
HYDERABAD, ANDHRA PRADESH
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SCHEMES FOR DEVELOPMENT AND PROMOTION OF

WOMEN ENTREPRENEURS

According to the Third All India Census of Small Scale Industries

conducted in 2001-02 and subsequent estimates made, only 10.11%
of the Micro and Small Enterprises in India are owned by women
while 9.46% of the MSE enterprises are managed by women. As
per the latest available estimates, the number of women owned and
women managed enterprises is 12.99 lakh and 12.15 lakh
respectively.

In order to encourage more and more women enterprises in the

MSE sector, several schemes have been formulated by this
Ministry and some more are in the process of being finalized,
targeted only at the development of women enterprises in India.

The following is a brief notes on some of the important schemes

that are made specifically for women or give special benefits to
women.

1 TRADE RELATED ENTREPRENEURSHIP

. ASSISTANCE AND DEVELOPMENT SCHEME FOR
WOMEN (TREAD):
With a view to encourage women in setting up their own
ventures, government launched a Scheme, namely, �Trade
Related Entrepreneurship Assistance and Development
(TREAD) during the 11th Plan. The scheme envisaged
economic empowerment of women through the development of
their entrepreneurial skills in non-farm activities. There are
three major components of the scheme;
(i) GoI grant upto 30% of the total project cost to the Non-
Government Organisations (NGOs) for promoting
entrepreneurship among women. The remaining 70% of
the project cost is financed by the lending agency as loan
for undertaking activities as envisaged in the project.
(ii) GoI grant upto Rs.1 lakh per programme to training
institutions / NGOs for imparting training to the women
entrepreneurs.
(iii) Need-based GoI grants upto Rs.5 lakh to National
Entrepreneurship Development Institutions and any other
institutions of repute for undertaking field surveys,
research studies, evaluation studies, designing of training
modules etc.

Operationalisation of the Scheme:

The scheme envisages that Women Associations/NGOs/SHGs should
prepare composite bankable proposals for a group of women
entrepreneurs, and submitted to the bank, which are signatories to
participate in the scheme, namely, Syndicate Bank, State Bank of India,
Canara Bank and Allahabad Bank. A copy of the proposal submitted to
the bank should be endorsed to DC (MSME). Bank examines the
proposal and issues approval. On the basis of the approval proposal
considered by M/o MSME and 30% of the loan amount is sanctioned as
grant and made available to the bank.
2 MICRO & SMALL ENTERPRISES CLUSTER
. DEVELOPMENT PROGRAMME (MSE-CDP):
a) Existing Clusters:
A cluster is defined as a group of enterprises, normally 20
or more producing same/similar products/services. The
Cluster Development Programme (CDP) being
implemented envisages diagnostic study of identified
clusters of traditional skill-based MSEs to identify
appropriate technologies and their providers and to
facilitate adoption of available technology meeting the
specific needs of the end users. The Cluster Development
aims at enhanced competitiveness, technology
improvement, adoption of best manufacturing practices,
marketing of products, employment generation etc. The
scheme provides assistance for capacity building, common
facilities, marketing etc. the delivery, assimilation and
diffusion of the identified technology from its producers to
the recipient user/cluster of small enterprises.

Type of interventions:
I) Soft Interventions:
Capacity building activities in the cluster where no
fixed assets is acquired or formed. Soft interventions,
inter alia, include:
i) Diagnostic study.
ii) Forming association-Trust building &
Developing Identity.
iii) Capacity building.
iv) Organising workshops, seminars.
v) Training & Exposure visits.
vi) Market development.
vii) Launch of Website.
viii) Common procurement.
ix) Common/complementary sales and branding.

In the past depending upon the type of cluster,

assistance available for soft interventions has varied in
the range of Rs.25 � 35 lakh per cluster. Currently
 we have an internal ceiling of Rs.10 lakh for soft
intervention under this Scheme, which we are trying to
bring upwards. Clusters of women�s enterprises are
entitled up to 90% assistance for soft interventions.

ii) Hard Interventions:

These are tangible �assets� like:
i) Setting up of Common Facility Centre (CFCs).
ii) Mini Tool Rooms.
iii) Design Centres.
iv) Testing Facilities.
v) Training Centre.
vi) R&D Centres.
vii) Common Raw Material Bank/Sales depot, etc.

There can be other tangible assets that could be set up

by the women�s Clusters, as long as they are put to
common use. For hard interventions, it is necessary to
form a Special Purpose Vehicle (SPV) which could be
a registered society, or a cooperative society, or
company, or a trust or any other legal entity � in
which at least 20 to 30 members of the Cluster
contribute and participate. Other Cluster members who
do not join this SPV could also sign up as Users.

iii) Infrastructure Assistance:

Infrastructure assistance includes the construction of
basic amenities like power, approach roads, drainage,
water supply and storage and the like. MSME
Ministry�s assistance for this component is presently
limited to 40% of the total cost � though we are trying
to increase this level.

Only one element of Infrastructure Assistance i.e.

Display or Exhibition Centres (which could consist of
show-rooms with attached stores) are entitled to a
higher level of assistance in so far as Women�s
Clusters are concerned, i.e. 90%. This
 Display/Exhibition Centre could be built by the
Women�s Clusters, SPV within the Cluster, or near
the Cluster or even in adjoining Markets of Towns �
as long as they exhibit and market the products
manufactured by the Women�s Clusters.

b) Creation of physical infrastructure:

This Ministry implemented the IID Scheme to provide
developed sites with infrastructural facilities like power
distribution network, water, telecommunications, drainage
and pollution control facilities, roads, exhibition/display
centres, raw materials, storage and marketing outlets,
common service facilities and technological back-up
services, etc. This scheme has been subsumed in the
MSME-Cluster Development Programme. All the features
of IID Scheme have been retained.

To create physical infrastructure exclusively for women

enterprises central grant of 40% of the project cost subject
to a maximum of Rs.2 crore is available. The Ministry of
MSME is making efforts to enhance the quantum of grant
to 80% in a project of Rs.10 crore.

Operationalisation of the Scheme:

i) A Cluster Development Executive (CDL) is required for
executing and monitoring all soft interventions in a cluster.
Normally, a CDE can be a DIC Officer/MSME-DI
officer/retired expert or even hired person from Non-
Government Sector.
ii) The hard interventions in a cluster and creation of physical
infrastructure require to set up a users body/special purpose
vehicle which could be society/trust/company to be formed
by the cluster beneficiaries.

3
CREDIT GUARANTEE FUND SCHEME:
.
The Government introduced the Credit Guarantee Fund Scheme
for Small Industries in May, 2000 with the objective of making
available credit to SSI units, particularly tiny units, for loans up
 to Rs. 25 lakh without collateral/ third party guarantees. The
Scheme is being operated by the Credit Guarantee Fund Trust
for Small Industries (CGTSI) set up jointly by the Government
of India and SIDBI. The Scheme provides for collateral free
credit facility (term loan and / or working capital) extended by
eligible lending institutions to new and existing SSI units/
Small Scale Service and Business (industry related) Enterprises
(SSSBEs) including Information Technology and Software
Industry up to Rs. 25 lakh per borrowing unit. In the case of
women enterprises, the guarantee cover is up to 80% of the
credit subject to maximum guarantee limit of Rs. 20 lakh. The
member lending institutions (MLI) availing of guarantee from
the Trust have to pay a one-time guarantee fee of 1.5% of the
credit facility (comprising term loan and / or working capital)
sanctioned by the lending institution to the borrower and annual
service fee of 0.75% per annum on the amount of credit facility
extended by the MLI, which is covered under the scheme.

Operationalisation of the Scheme:

The entrepreneurs whose bank finance is approved by the
lending bank may ask the bank to obtain guarantee from the Credit
Guarantee Trust Fund. This facility is available online to the lending
banks and clearance from the Trust is conveyed in a day or two.

4 SUPPORT FOR ENTREPRENEURIAL AND

. MANAGERIAL DEVELOPMENT:
MSME DIs regularly conduct EDPs/MDPs for existing and prospective
entrepreneurs and charge fee for such courses. To encourage more
entrepreneurs from among the SC/ST, women and physically challenged
groups, it is proposed that such beneficiaries will not be charged any fees
but, instead paid a stipend of Rs.500/- per capita per month. 50,000
entrepreneurs will be trained in IT, Fashion Technology, Catering, Agro &
Food Processing, Pharmaceutical, biotechnology etc. through specialized
courses run by MSME DIs. 20% of courses conducted by these
Institutions shall be exclusively for women.

5 EXHIBITIONS FOR WOMEN UNDER PROMOTIONAL

. PACKAGE FOR MICRO & SMALL ENTERPRISES
APPROVED BY CCEA UNDER MARKETING
SUPPORT:
DC (MSME) has formulated a scheme for women
 entrepreneurs to encourage Small & Micro manufacturing units
owned by women in their efforts at tapping and developing
overseas markets, to increase participation of representatives of
small/micro manufacturing enterprises under SIDO stall at
International Trade Fairs/Exhibitions, to enhance export from
such units. Under this scheme participation of women
entrepreneurs in 25 international exhibitions is envisaged
during the 11th Plan.

For the year 2007-08 a good number of prominent women

entrepreneur associations have been requested to sponsor their
members for participation in 5 international exhibitions
scheduled during the months of Jan.-March, 2008. An
advertisement has also been released in this regard in daily
newspaper.

With a view to encourage women entrepreneurs to participate

in the International Exhibitions it has been decided to:
i) provide rent free space in the exhibitions.
ii) reimburse 100% economy class air fare for one
representative.
iii) reimburse shipping cost upto Rs.15,000/-.
The overall ceiling shall however be Rs. 1.25 lac.

For any further information or details of these schemes, you are

welcome to get in touch with the MSME-DI in your state, check our
website: http://www.smallindustryindia.com or send an email to
dcmsme@dcmsme.gov.in