Financial equality is an important pillar of gender equality. The Indian government, in its goal to achieve the sustainable development goal (5) of gender equality, introduced various financial instruments and schemes specifically to cater to the financial needs of women. These schemes envisage women’s empowerment by actively participating in the country’s economy. Here are some popular investment schemes for women in India:
Investment Schemes for Women in India
Mahila Samman Saving Certificate Scheme
One of the main investment schemes for women we have to talk about is the Mahila Samman Saving Certificate Scheme. It is a small savings scheme for women and girls announced during the Budget speech of 2023-2024 to commemorate Azadi Ka Amrit Mahotsav.
It is available in the post offices at the interest rate of 7.5% p.a from April 2023 onwards. Mahila Samman Saving Certificate Scheme offers a maximum deposit of up to lakhs for two years in the name of women or girls. The Tax Deducted at Source is not reduced for the interest of the Mahila Samman Savings Certificate Scheme.
This scheme for women is a top investment choice because of its tax benefits and the comparatively higher interest rate.
Sukanya Samridhi Yojana
This government scheme is for the girl child. Parents or guardians can open a Sukanya Samridhi Yojana Account for a girl under 10. Below are the major characteristics of this scheme, which aims to achieve the financial empowerment of women:
- Minimum deposit ₹ 250; Maximum deposit ₹ 1.5 lahks in a financial year.
- Only one account can be opened in the name of a girl.
- Accounts can be opened at post offices and authorized banks.
- To meet the account holder’s higher education and educational purpose, withdrawal is allowed.
- Account will mature after the completion of 21 years from the date of opening it.
- Deposit qualifies for tax deduction under section 80 C of the IncomeTax Act.
- Interest earned from the account is free from income tax.
Mudra Yojana Scheme for Women
Another one of the main investment schemes for women is the Mudra Yojana Scheme. The government of India launched Pradhan Manthir Mudra Yojana in 2015 to support aspiring entrepreneurs to start their businesses. Many financial institutions extended the scheme to encourage women entrepreneurs and introduced the Mudra Yojana for women.
Types of Mudra Loans for Women
- Shishu: Up to 50,000; Targeting small business owners in the early stages of business
- Kishor: 50,000- 5 Lakh; To expand the business
- Tarun: 5lakh- 10 lakh; Facilitates expansion and diversification
Stand Up India Scheme
Stand Up India is a scheme facilitating SC/ST and/ or women entrepreneurs. The scheme aims to facilitate bank loans between 10 lakhs and 1 crore to at least one scheduled caste or scheduled tribe and a female entrepreneur for setting up a greenfield enterprise. The enterprise may be in services, manufacturing, agri-allied activities, or trading.
In non-individual businesses, at least 51% of shareholding and controlling should be held by either SC/ST or female entrepreneurs.
First-time female entrepreneurs above 18 are eligible for the loan to set up a new enterprise. Not more than one woman from a household who received training will be eligible for the scheme.
Mahila Coir Yojana
It is a women-oriented self-employment program in the coir industry. The scheme aims to provide self-employment to women artisans in the coir-producing region. Not more than one woman from a household who received training will be eligible for the scheme. Financial assistance for procuring equipment to set up new coir units can be availed through the Pradhan Mantri Employment Guarantee Program up to 25 lakhs.
Suggested Read: What are Mutual Funds?
Udyam Shakthi
The recent trend of increased women’s presence in the business sector necessitated the right information on one portal regarding self-employment opportunities for women. Udyam Shakti platform enlightens women entrepreneurs through:
- Entrepreneurship Learning Tools
- Simple way of preparing the business plan
- Availability of suitable training, Seminars, and workshops
- Information on Government Policies and Programmes
- Information of every state Directorate of Industries and Policies of that state
- Finance Schemes for Small Businesses by Ministry of MSME
- Finance Schemes designed by important individual banks in line with Government Policies and directives
- Marketing information
- Information of world-class MSME-Technology Centres of M/o MSME
- Business meets Buyer Seller Meets and Exhibitions
- Incubation Facilities
- Assistance for Intellectual Property Rights (IPR)
- Assistance for Cluster Development Programmes
- Networking and events for international business promotion
- Mentors in business and many more facilities
Bhartiya Mahila Bank Business Loan
Bhartiya Mahila Bank was established to empower women by promoting economic opportunities. Even after its merger with SBI in 2017, it still retains its ambition of helping women entrepreneurs in India. There are 4 types of Bhartiya Mahila Bank loans available for women. They are:
1. BMB Shringaar
This loan is for women who wish to launch a beauty parlor, spa, or salon anywhere in India.
Characteristics:
- Women aged 20-60
- Repayment tenure up to 7 years
- No collateral is required.
- Loans can be used to shop or buy tools and more.
2. BMB Annapurna Loan
- Start-up business loan for women launching or running catering businesses.
- The age limit is between 18- 60 years.
- No collateral required
- Repayment within 3 years
3. BMB SME Easy
- It is for women who are into small and medium-scale businesses.
- Loans up to 20 crores can be availed.
- Collateral is required for a loan of more than 1 crore.
- Repayment tenure up to seven years
4. BMB Parvarish
- This is for women who wish to run a daycare centre anywhere in India.
- The age limit is between 18- and 55 years
- No collateral required
- Loan repayment tenure is up to 5 years.
TREAD Schemes for Women
The Trade Related Entrepreneurship Development Assitance Scheme (TREAD) was launched by the government of India to promote women’s entrepreneurship. The scheme includes financial assistance as well as skill development training.
The bank providing loans to the enterprise will estimate the project amount and give the 70% of the required amount. The remaining 30% will be provided by government. Credit will be made available to women through an NGO capable of handling the same. The NGO will also provide training to develop women’s technical and entrepreneurial skills.
According to recent studies by Startup India, India, since the pandemic, has seen numerous women-led online startups. The increasing presence of women’s enterprises has contributed to the country’s increased social and economic growth.
We have listed here some government schemes emphasizing women’s financial growth. That does not mean you can not avail of other schemes. Listed below are some of the general government schemes that women can take advantage of:
- E- Kisan Vikas Patra Scheme
- Public Provident Fund
- Unit Linked Insurance Plan
- Government Saving Bonds
- Employees Provident Fund
- Prime Ministers Employment Generation Program
- CGTMSE Scheme
FAQs about Investment Schemes for Women
What are the investment schemes available for women in India?
Mahila Samman Saving Certificate, Sukanya Samridhi Yojana, Mudhra Yojana for women, Stand Up India scheme, Mahila Coir Yojana, Udyam Shakti, Bhartiya Mahila Bank Business Loan, and TREAD schemes for women are important schemes by the government of India emphasizing the economic empowerment of women in India.
What is the best investment for women in India?
Apart from various schemes provided by the government specifically for women, general financial instruments like Fixed deposits, gold, stock, and PPF bonds are better investment plans for women.
What are the risk-free investment plans for homemaker women?
Fixed deposits and PPF are completely risk-free investments that homemaker women usually prefer.
Are women exempted from Income Tax?
Since 2012-13, the difference in basic exemption limits has changed, and the common tax slab for men and women was introduced.
Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
