Rashtriya Mahila Kosh (RMK), also known as the National Credit Fund for Women, was established in 1993 under the Ministry of Women and Child Development, Government of India. Its primary objective is to provide microfinance to economically weaker women, especially those engaged in income-generating activities. RMK aims to empower women by enhancing their access to financial services, which helps them attain financial independence and contribute to their family's welfare.
Over the years, RMK has introduced various loan schemes tailored to meet the diverse financial needs of women in rural and urban areas. These schemes are implemented through intermediary microfinance organizations (IMOs) like NGOs, self-help groups (SHGs), cooperative societies, and other grassroots organizations. Below is an overview of the main loan schemes offered by RMK.
1. Main Loan Scheme (Direct Loan Scheme)
The Main Loan Scheme is the flagship loan program of RMK and aims to provide credit to women for income-generating activities. The loans are disbursed to IMOs, which in turn lend to women at the grassroots level.
Key features:
- Loan Amount: IMOs can avail loans up to ₹10 lakhs from RMK, which they disburse to SHGs or individual women.
- Purpose: The loan is used for a wide range of income-generating activities such as agriculture, dairy farming, small businesses, handicrafts, and retail.
- Repayment Period: The loan repayment period can extend up to three years, depending on the nature of the activity.
- Rate of Interest: RMK offers loans to IMOs at a concessional rate, typically lower than the prevailing market interest rates. The IMOs can then charge a slightly higher interest rate to cover their operational costs.
2. Loan Promotion Scheme (LPS)
The Loan Promotion Scheme is designed to support IMOs that are in the early stages of setting up microfinance activities. It helps them gain experience and capacity in lending to women’s groups and SHGs.
Key features:
- Loan Amount: IMOs can borrow an initial amount of up to ₹5 lakhs under this scheme.
- Capacity Building: LPS encourages the development of grassroots organizations by helping them build capacity and develop systems for microfinance operations.
- Purpose: The loans are utilized for small-scale activities that promote entrepreneurship among women, including trade, handicrafts, and home-based businesses.
- Repayment Period: The repayment period is typically 2-3 years.
3. Working Capital Term Loan Scheme
This scheme caters to the working capital needs of women entrepreneurs, particularly those engaged in businesses that require short-term funds for day-to-day operations.
Key features:
- Loan Amount: Up to ₹10 lakhs, depending on the requirement.
- Purpose: Working capital loans can be used to purchase raw materials, maintain inventory, or meet other short-term operational expenses.
- Repayment Period: Usually between 12-18 months.
- Interest Rate: Like other RMK schemes, the interest rates are concessional and are meant to be affordable for small entrepreneurs.
4. Revolving Fund Scheme
The Revolving Fund Scheme provides funds to SHGs and women’s groups to create a sustainable pool of capital. The idea is that once the loan is repaid, the capital is reinvested or lent to new beneficiaries, creating a self-sustaining financial ecosystem.
Key features:
- Loan Amount: Typically ranges from ₹1 lakh to ₹5 lakhs, depending on the IMO’s size and capacity.
- Purpose: The revolving fund is used to support short-term income-generating activities, with the funds being revolved multiple times within the community.
- Repayment Period: The loans are typically repayable within 2-3 years.
- Interest Rate: A concessional interest rate applies, making the loan affordable for women beneficiaries.
5. Gold Credit Scheme
The Gold Credit Scheme allows women to avail loans against the security of gold ornaments. This scheme caters to women who may not have traditional collateral or formal financial records but own gold, which can be leveraged for credit.
Key features:
- Loan Amount: The loan amount depends on the value of the gold pledged, generally up to a certain percentage of its market value.
- Purpose: Loans are typically used for meeting immediate financial needs or supporting business expansion.
- Repayment Period: The tenure of the loan is generally short-term, around 12-18 months.
6. Housing Loan Scheme
The Housing Loan Scheme aims to provide loans to economically weaker women for the construction or renovation of their homes. Affordable housing is an essential aspect of women’s empowerment, and this scheme seeks to address their housing needs.
Key features:
- Loan Amount: IMOs can lend up to ₹2 lakhs to individual beneficiaries.
- Purpose: The loan is used for house construction, repairs, or the purchase of a plot.
- Repayment Period: The repayment tenure is usually up to five years, depending on the amount and the financial capacity of the beneficiary.
Conclusion
The loan schemes offered by Rashtriya Mahila Kosh are designed to cater to the diverse financial needs of economically weaker women in India. By promoting income-generating activities, enhancing access to credit, and focusing on women's entrepreneurship, RMK contributes significantly to the empowerment of women, especially those in rural areas. These loan schemes help bridge the gap between formal financial institutions and underserved women, ensuring they have the means to uplift themselves economically and socially.
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