Trade Related Entrepreneurship Assistance and Development (TREAD) scheme was launched by the central government for illiterate and semi-literate women in rural and urban India to improve their overall condition. It has been put into action with the 12th year plan. This economic scheme focuses on women empowerment through trade related training, informative counseling sessions and various activities.
Objective of this scheme:
The agenda is to provide grant to eligible women through Nodal NGO for pursuing non-farm activities.
- Government grants 30% of the loan/credit which sums up to almost Rs 30 lakh loan under this scheme.
- The lending banks in this loan scheme would give financial assistance to women who undertake non-farming activities through NGOs.
- Since it’s difficult for these women to avail the credit given by the government, the funds would be given to them via some NGOs.
- The NGOs will also help the women with proper training, guidance of handling funds and assistance.
|Government Grant||Up to 30% of the loan|
|Lending banks/institutions Grant||Remaining70% loan|
An NGO submits a proposal let’s say consisting of 50 women for Rs.50,000 each then the mathematical formula would be-
Total women= 50
Requirement for each woman= Rs.50000/-
So, total loan amount = 50×50000= 25 lakh
And if we add other expenditure, duly approved by lending agencies/banks, the total required loan= 25+15= 40 lakh
Now, as per the scheme, the government will give 30% of the total amount.
So, the amount is 30% of 40 lakh= 12 lakh.
All the Nationalized Banks are eligible to implement this scheme. DCMSME has signed MoU with the follow mentioned banks. Any other bank wishes to implement this scheme has to sign a memorandum of understanding with DCMSME (Development Commissioner, Ministry of Medium, Small and Micro Enterprises).
|1||State Bank of India|
|5||Oriental Bank of Commerce|
|6||Indian Overseas Bank|
|10||Bank of Baroda|
Eligibility Criteria for NGOs:
- Have to be a legal entity with minimum three years of experience
- Should have experience in thrifts and saving programmes with self-help groups and individuals.
- Should be engaged with entrepreneurship and employment generation programmes for women.
- Should have basic infrastructure, skill development programmes, supportive staff service and should undertake micro enterprise development for women.
- It positively should not be blacklisted by any ministry thus be eligible for grant.
How to avail:
NGOs can directly apply here