Mahila Samridhi Yojana (MSY)

The Mahila Samridhi Yojana (MSY) is an initiative run by Ministry of Social Justice & Empowerment (MSJE), Government of India, acting through two major corporations National Safai Karamcharis Finance & Development Corporation (NSKFDC) & National Backward Classes Finance & Development Corporation (NBCFDC). In States the scheme is being implemented through State Channelizing Agencies (SCAs). 

Highlights

  • Soft loans for income generation & self employment 
  • Govt provides 90% to 95% of loan cost and offers interest rebates 
  • Target us upliftment of women from economically weaker sections or specific communities (SC/ST/OBC/Charmakar, Safai Karamcharis, etc).

What is MSY ?

  • The scheme provides financial assistance through SCA, Regional Rural Banks (RRBs), Nationalized Banks, Self Help Groups (SHG) to women for income generation and self employment
  • The scheme provides soft loan to underprivileged and marginalised women such as SC/ST, Safai Karamcharis and  Backward Classes
  • The scheme covers up to 90–95% of the project cost as a loan, with interest rebates and a moratorium period
  • The scheme also includes support for skills development and livelihood enhancement.

Objectives of the Scheme

  • To empower and uplift economically and socially marginalized women.
  • To facilitate self-reliance through self-employment, micro-enterprise, and financial literacy.
  • To break caste, gender, and economic barriers by making credit and skills accessible for sustainable livelihoods

Benefits of the Scheme

  • Soft Loan Facility 
    Subsidized loans up to ₹1,00,000–1,25,000 (depending on channel/region); interest rate usually 2–6% per annum, repayable in 3 years
  • Enhances SHG capability 
    SHGs may receive group-based higher lending limits and support
  • Flexible repayment facility 
    Moratorium (repayment holiday) post-implementation for ease of repayment.
  • Inclusive Growth 
    Vocational skills training, Financial literacy and self-employment guidance to backward communities 

Financial Assistance Under the Scheme

Component

Assistance 

Soft Loan 

Rs 1,25,000 (by Central Govt)

Rs 25,000 to Rs 50,000 (by Select State Govts)

Guarantee Cover 

90% by National Safai Karamcharis Finance & Development Corporation (NSKFDC)

10% by State Channelizing Agencies (SCAs)

Group based benefit 

SHGs get higher limits, training and stipend.

Low Interest

Around 1% to 6% per annum, with subsidies and minimal collateral requirements.

Eligibility for the Scheme

You are eligible if:

  • You are woman aged between 18 to 60 ( may vary in States)
  • You belong to backward class, safai karamcharis/Charmakar/SC/ST/OBC (specific schemes)

You are not eligible if:

  • You are a man
  • You are a woman employed in govt jobs or availing similar benefits from other schemes

Documents Required for the Scheme

  • Aadhaar, PAN & Bank Details
  • Income Certificate 
  • Caste Certificate 

Application Process for the Scheme

You can apply:

  • Online via National Safai Karamcharis Finance & Development Corporation (NSKFDC) 
  • Offline via District Offices of State Channelizing Agencies (SCAs)

Examples of Where The Scheme Can Be Used

  • A tailor in Delhi from a BPL family receives ₹2,500 monthly and uses it to buy a sewing machine, boosting her income and supporting her daughter’s school fees.
  • A woman from the Charmakar community in Maharashtra takes a ₹50,000 loan at 4% interest to start a leather goods micro-unit, repaying profitably over 3 years.
  • A group of Safai Karamchari women access ₹1 lakh loan through NSKFDC, establish a cleaning services business, and also attend skill training workshops with a stipend.
Mahila Samridhi Yojana (MSY)