In a significant move towards empowering rural women entrepreneurs, Charanjit Singh, Additional Secretary of Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM), and Shantanu Pendsey, Chief General Manager of State Bank of India (SBI), Corporate office Mumbai, signed a Memorandum of Understanding (MoU) on January 10. The collaboration aims to streamline the process of enterprise financing for Self-Help Group (SHG) women in rural areas.
Two Crore Lakhpati Didis: A Visionary Initiative
Charanjit Singh emphasized the importance of this collaboration as a significant step towards realizing the vision of Prime Minister Narendra Modi to create Two Crore Lakhpati Didis (wealthy sisters) from SHG women. The partnership between DAY-NRLM and SBI seeks to provide financial support and opportunities for women entrepreneurs in rural communities.
Svyam Siddha - A Tailored Financial Product
State Bank of India unveiled a specialized financial product named ‘Svyam Siddha,’ exclusively designed to cater to the financial needs of SHG women entrepreneurs. This initiative addresses the challenges associated with traditional loan application processes, aiming to simplify and expedite the financing process for loans up to Rs 5 lakhs. The innovative approach eliminates the need for extensive documentation, such as quotations and Detailed Project Reports (DPRs), streamlining the application process to a simple form with KYC details. DAY-NRLM will play a pivotal role in facilitating the application process and overseeing loan repayments through its dedicated field cadre.
Launch of Training Toolkit Package
Simultaneously, a training toolkit package was introduced at the event to promote formal finance access for SHG women entrepreneurs. This marks a crucial milestone in DAY-NRLM's commitment to empowering communities and advancing financial inclusion at the grassroots level. The toolkit covers essential topics, including fundamentals of banking, financial statements, and working capital calculations. To enhance accessibility, key modules of the toolkit have been converted into animated videos, facilitating self-capacity building for entrepreneurs.
Developed in collaboration with the International Finance Corporation (IFC) under the World Bank-funded National Rural Economic Transformation Project (NRETP), this toolkit aims to strengthen the capacities of State Rural Livelihoods Missions (SRLMs). The objective is to facilitate increased access to formal finance for SHG members engaged in economic enterprises.
The MoU signing event witnessed the presence of Raghvendra Pratap Singh, Director of Rural Livelihoods at the Ministry of Rural Development (MoRD), and Surendra Ran, Deputy Managing Director and Head of Agriculture, SME, and Financial Inclusion at State Bank of India. Officials from NMMU, The World Bank, and the IFC also participated, highlighting the collaborative efforts to drive positive change in rural entrepreneurship.
