TREAD Scheme Benefits for Women Entrepreneurs

Introduction to TREAD

Women are the most vulnerable to hear a “NO” for raising funds, starting a business, expanding and everything else in a business environment. Lending giants refuse them for a business loan irrespective of their literacy levels, capabilities, and ability to run a business, women have to step back and borrow from the non-reliable sources. Trade Related Entrepreneurship Assistance and Development (TREAD) for women was launched by the Government of India to promote entrepreneurship in women.

Objective of TREAD

The credit gap for MSME women entrepreneurs is estimated to be at around $158 billion and it is observed that credit delivery in women is a major lack, apart from training and counselling. The TREAD scheme was launched with the objective of enhancing the technical skills and entrepreneurial upskilling so that women entrepreneurs can develop to gain sustainable employment. 

To empower women in rural as well as in the urban cities, it is to be taken into consideration that appropriate schemes and programmes are furnished to provide them necessary support. These women don’t have access to formal credit; therefore, assistance in all terms will be provided to such women. With this mindset, it was envisaged that the women will get credit via NGOs which are capable of handling funds in an appropriate manner.

Highlights and Salient Features of the Scheme

• Non Governmental Organisations (NGOs) will be provided assistance from the Government of India with grant of upto 30% of the total amount of the project cost. These NGOs should be into promoting entrepreneurship in the target group of women. The 70% of the remaining amount will be financed by the lending institutions such as banks and NBFCs as a loan which would be utilized by the NGO for undertaking activities proposed for the project. The grant can be used in training, counselling, tie-ups for marketing etc. as per their capacity.

• Various NGO and training institutions participating in the programme can also avail grant up to INR 1 lakh per programme from the Government of India to aid empowerment in women entrepreneurship. 

• The Government of India also provide grant upto INR 5 lakhs on the basis of need of the institutions such as the National Entrepreneurship Development Institutions (EDIs), National Institute of Small Industry Extension Training (NISIET), National Institute of Entrepreneurship and Small Business Development (NIESBUD), Indian Institute of Entrepreneurship (IIE), EDIs supported by the state government, Small Industries Services Institutes (SISIs). These institutes should be primarily taking surveys, creating various learning modules for the empowerment of women entrepreneurs. The grant amount could also be used to meet the expenses for books, periodicals, computers, etc.

Eligibility Criteria for Registration

• Legal entity with 3 years of minimum registration.
• Experience in thrift and saving programmes with SHGs (Self Help Groups).
• Qualified staff for taking the training sessions for the development of skills for women.
• Basic infrastructure and services for conduction of training.
• Should not be blacklisted by any ministry or statutory body.
• Engagement in entrepreneurship and income generation activities.
• Experience in preparing project proposals on the behalf of women SHGs and women entrepreneurs.

Registration Process

To apply for the scheme, applications can be submitted in the nearest micro, small and medium enterprise (MSME) development institute, after which the required request will be processed by the concerned official.

Kinara Capital, an RBI registered Systemically Important NBFC in India aims to empower the small business owners by providing them collateral free business loans. To support the women entrepreneurs, Kinara has launched the HerVikas programme which provides automated discounts on the loan applications submitted by women business owners without any additional documentation. 

Kinara Capital is serviceable in 4500+ pincodes and has disbursed around 100000+ MSME loans worth INR 6500+ crores till date with an aim to help the small and medium entrepreneurs grow. To level up your business, check your business loan eligibility in the myKinara app from the Google Play Store in your preferred vernacular, choosing from 7 language options available. Also, we have a dedicated customer support team available between Monday – Friday (9.30 AM – 6.00 PM) at our toll free number 1800-103-2683 for any questions or assistance. This ensures that entrepreneurs can get the help they need throughout the loan process.

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