Women’s Empowerment to Entrepreneurship

Sajjad Bazaz
On this International Women’s Day, let me share an interesting report with respect to the financial affairs of women folk in India. The report titled ‘From Borrowers to Builders: Women’s Role in India’s Financial Growth Story’, states that women borrowers in India have grown at a compounded growth rate of 22 per cent over the last 5 years with majority of them from semi-urban and rural areas, who are also actively monitoring their credit scores.
As per the report, credit availability for financing businesses constituted only 3 percent of the overall borrowings by women in 2024, as against 42 per cent for personal finance products like personal loans, consumer durable loans, home ownership and 38 per cent against gold.
The report said the number of accounts opened for business purposes has grown 4.6 times since 2019, but these loans constitute only 3 percent of overall loans availed by women in 2024.
As per the report, since 2019, women’s share in business loan origination has increased by 14 per cent and their share in gold loans has grown by 6 per cent, with women accounting for 35 per cent of business borrowers by December 2024.
There is no denying the fact that the growing presence of women entrepreneurs has redefined the demographic characteristics of business and economic growth. In this growth story, the women entrepreneurs, big or small in size, have been playing a noticeable role to trigger appetite for entrepreneurship in others and generating more employment avenues.
The excerpts of the above report reveals growing appetite among women necessitates to strengthen the women entrepreneurship ecosystem through sound policies, initiatives and creation of enabling networks. There is a need to lend a helping hand to the women having an appetite for running their own enterprises and help those already in business and who have suffered due to the certain unfavorable condition to re-set their enterprises in line with the changing times. In other words, there is need for sustainable growth of women entrepreneurs to strike a balanced economic growth
Here it’s worth mentioning that quality financial products and services are essential to woo women folk for entrepreneurship.
In the context of the J & K scenario, the J & K government has launched a customized livelihood generation scheme exclusively for women. Tiled as ‘TAJASWINI’, the scheme aims to empower young women entrepreneurs of Jammu & Kashmir. In absence of jobs, the scheme throws an opportunity for the women to venture into entrepreneurship in accordance with their skill-set and those already in business can take the route of the scheme to expand their businesses.

Purpose of ‘Tajaswini’ scheme
It’s a financial empowerment scheme specifically tailored for J&K women falling in the age group of 18 – 35. The scheme paves way for them to set up a new enterprise or upgrade an existing enterprise in manufacturing/ service/ trading/ small business etc. The scheme also facilitates acquisition of fixed assets (Plant & Machinery, equipment, furniture & fixtures) and meet financial needs for purchase of various products /equipment/tools etc.
For example, any young woman who wants to establish her own beauty parlour or boutique/tailoring unit can take the route of this scheme to seek financial support from the bank.
Notably, activities such as running a restaurant, computerized desk top publishing, crèche, cyber café, day care centre, fitness centre etc. can be financed under the scheme.
The loan will be granted in the form of a term loan. However, working capital (cash credit) facility, which is outside the ambit of the scheme, can also be extended by the bank, if required.

What is the amount of loan sanctioned under the scheme?
The quantum of finance is linked to the project cost. The bank will finance 100 per cent of the project cost, but not more than Rs. 5 lakh. In case the project cost is more than Rs 5 lakh, the rest of the amount has to be self-financed by the beneficiary.

Who is eligible for availing the benefits under the scheme?
The applicant should be registered with Mission Youth, J&K with a qualification of 10th standard or above. However, educational qualification can be relaxed on a case to case basis.
For setting up new units, the applicant must be unemployed and registered with the concerned District Employment & Counseling Center. Notably, the categories of women entrepreneurs trained in RSETI/ Skill Development Institutions etc. any other training institute will get preference under the scheme.
Those individual women/ women entrepreneur (s) and Business Enterprises where women entrepreneurs hold not less than 50% of financial holding are also eligible under the scheme. However, they should not be defaulter with any Bank / Financial Institution.
It’s noteworthy that one woman can seek the assistance under this scheme only once. And those who have already availed any incentive or subsidy under any government scheme are not eligible for assistance under the scheme.

Do applicants have to furnish third party guarantee?
No. The borrowers are not required to submit any collateral security. The loans under the scheme shall be mandatorily covered under Credit Guarantee Fund Scheme and the guarantee fee shall be borne by the Bank.
However, the loans will primarily be secured by hypothecation of furniture & fixture/equipment/machinery etc. & negative lien on property, in case of owned land/property.

What is the repayment period of the loan?
It’s 78 months. However, the borrower will enjoy a moratorium period of six months. The first installment will begin after the moratorium period of six months is over.

Does the scheme carry any incentive for the borrowers?
Yes. The borrower will get an amount of Rs. 50,000 or 10% of project cost (Whichever is minimum) as special incentive (subsidy) which shall be appropriated/adjusted towards monthly installments of the term loan for the first six months after commencement of EMI. They will also get an interest subsidy. The interest subsidy shall be provided only on production of necessary documents including Audited Financial statement (If annual turnover of the concern exceeds Rs 1 Crore), certificate by DLIC testifying the sustainability of the activity.

What is the procedure of accessing the scheme?
The scheme can be accessed through a set procedure for identification of beneficiaries. Mission Youth, J&K shall invite online applications from interested female youth of J&K for seeking assistance under the scheme. The applications have to be submitted by the applicants digitally through a specific digital module developed for the purpose on JK e-Governance platform.
The applicants have to submit certain documents along with the application form. These documents include Domicile Certificate/ Ration Card/ Aadhaar Card; Date of Birth Certificate issued by the competent authority; Project report of the activity intended to be financed; and an affidavit to the effect that applicant will continue the trade for a period not less than 5 years or till the liquidation of loan amount in full, whichever is later.
Once an applicant is selected for financial assistance under the scheme, she has to furnish an indemnity bond duly attested by a First Class Judicial Magistrate among other things to effect that she is not doing or was not doing any job in Government, Public/Private Sector in Central or any State Government and that she shall not take up any such job without repayment of the loan in full.

Conclusion
Meanwhile, what matters in achieving true women’s empowerment is making them financially literate and encouraging them to take small steps towards financial planning. Women in the first place should crave financial knowledge, not diamonds. Once they acquire the financial skills, diamonds will fall in their way.
In other words, financial literacy leads to financial wisdom. They would acquire the ability to manage money instead of just dealing with it. This ability would increase their economic space. Remember, financial literacy is a primary step for their financial inclusion and would guard them against exploitation.
Women’s empowerment is a globally debated initiative and generally speaking Kashmiri women need to be stronger and more confident, especially in controlling their life and claiming their rights. The empowerment should aim at enhancing their position in the power structure of the society by enabling them to move to the centre stage.

(_{The author is Editor-in-Chief, Straight Talk Communications. He is former Head of Corporate Communications & CSR Department and Internal Communications & Knowledge Management Department, J&K Bank)}