Indian Overseas Bank Launches “IOB-MAHILA SHAKSHAM” Scheme To Empower Women Entrepreneurs

Indian Overseas Bank (IOB) proudly announces the launch of the “IOB-MAHILA SHAKSHAM” scheme, a unique initiative designed to finance individual Women Self-Help Group (SHG) members of the DAY-NRLM (Deendayal Antyodaya Yojana – National Rural Livelihoods Mission) SHGs. This scheme aims to uplift women by facilitating their transition to entrepreneurship and ensuring their financial self-reliance.

This scheme is in line with the Ministry of Rural Development’s (MoRD) ‘Lakhpati Didi Yojana’, which is designed to improve the financial standing of women SHG members from matured DAY-NRLM SHGs. The goal is to ensure these women earn a sustainable annual income of at least ₹1 lakh per household through financial assistance and entrepreneurial support.

Key Features of the “IOB-MAHILA SHAKSHAM” Scheme:

a) Financing for individual Women SHG members to foster entrepreneurship

b) Credit support of up to ₹10 lakh to individual members of DAY-NRLM SHGs

c) Promotes the financial independence of women and aims to deepen credit outreach to SHG members. In support of this initiative, the Ministry of Rural Development has also introduced the “Women Enterprise Acceleration Fund (WEAF)”, which includes the following benefits:

1) Reimbursement of Credit Guarantee Fees: Covered under CGFMU for banks on micro-enterprise loans up to ₹5 lakh, provided to women entrepreneurs from the SHG network for a maximum period of 5 years

2) 2% Interest Subvention: Applicable on enterprise loans up to ₹1.5 lakh per borrower for a maximum period of 3 years, based on prompt repayment to incentivize good repayment behavior.

IOB’s commitment to financial inclusion and women empowerment was further solidified with the signing of a Memorandum of Understanding (MoU) with the Ministry of Rural Development on 16th October 2024 in New Delhi. This MoU focuses on financing individual Women SHG members and deepening credit access to entrepreneurial SHG members.

Speaking on the occasion, a senior official of Indian Overseas Bank said, “We are proud to launch the ‘IOB-MAHILA SHAKSHAM’ scheme in partnership with the Ministry of Rural Development. This scheme is aimed at promoting entrepreneurship among women and improving their financial standing. It aligns perfectly with our broader mission to foster financial inclusion and empowerment in rural India.”

With this MoU and the launch of the “IOB-MAHILA SHAKSHAM” scheme, Indian Overseas Bank reinforces its commitment to uplifting women entrepreneurs, driving inclusive growth, and contributing to the overall development of rural India.