Stree Shakti Yojana: Empowering Women Entrepreneurs in India

Over the last couple of years, the business sector in India has been undergoing a paradigm shift, with an increasing number of women assuming ownership and leadership positions. The Indian government has launched several initiatives to capitalize on this momentum, such as the Stree Shakti Yojana, a flagship program targeting women entrepreneurs. The scheme falls under the SME (Small and Medium Enterprise) schemes, rendering essential funding and assistance to enterprises run by women.

Table of Contents

1. Introduction 2. What is Stree Shakti Yojana? 3. Key Features of Stree Shakti Yojana 4. Eligibility Criteria 5. Benefits for Women Entrepreneurs 6. Application Process 7. Driving Modern-Day ‘Stree Shakti’ Through EV Financing 8. Women Leading India’s EV Movement 9. Stories That Inspire 10. Success Stories of Women Entrepreneurs 11. The Road Ahead for Women-Led Growth

What is Stree Shakti Yojana?

Stree Shakti Yojana is a loan scheme for women entrepreneurs introduced to promote women’s participation in business and enterprise. It is implemented primarily through the State Bank of India (SBI) and other public sector banks, under the Ministry of Micro, Small and Medium Enterprises (MSME) framework. The scheme provides financial assistance to women who own and manage small businesses in manufacturing, services, or trading sectors. The program’s goal is to empower women in both rural and urban areas by providing easier access to institutional credit and reducing financial barriers. There are several unique features of the scheme that make it an effective tool for women entrepreneurs:

• Interest Concession:

Women entrepreneurs receive a 0.5% (half percent) concession on the prevailing interest rate for loan amounts above ₹2 lakh.

• Flexible Loan Amounts:

The loan amount depends on the business category: Retail traders / Business enterprises: Up to ₹2 lakh Professionals: Up to ₹25 lakh Small-scale industries (SSI): Up to ₹25 lakh

• No Security for Small Loans:

No collateral is required for loans up to ₹10 lakh for women-owned MSMEs.

• Sector Flexibility:

Institutions from the manufacturing, service, or trade sectors can benefit from this scheme.

• Streamlined Application Process:

A direct process ensures that women can access funds without excessive bureaucratic red tape.

Stree Shakti Scheme Eligibility Criteria

The eligibility criteria for the Stree Shakti Yojana are as follows:

• Ownership and Control:

The company must be owned and operated by women, with at least 51% ownership held by women.

• Development Program Participation:

Candidates must have participated in entrepreneurship development programs run by approved organizations.

• Registered Business:

The business must be registered under the MSME (Micro, Small, and Medium Enterprises) category. Benefits of Stree Shakti Yojana for Women Entrepreneurs. The Stree Shakti Scheme provides various direct advantages to women entrepreneurs:

• Empowerment:

The scheme plays a critical role in empowering women financially to start and expand their businesses.

• Lower Cost of Capital:

Interest concessions and no collateral requirements for smaller loans mean women can focus more on business growth rather than loan repayment.

• Promoting Innovation:

The scheme promotes an entrepreneurial ecosystem that encourages innovation in various sectors.

• Employment Generation:

Women entrepreneurs create job opportunities, fostering inclusive economic growth.

Stree Shakti Yojana Application Process

The Stree Shakti Yojana application process is straightforward and convenient:

• Select a Bank:

The scheme is offered through several public sector banks, such as State Bank of India (SBI), Bank of Baroda, and Punjab National Bank (PNB).

• Compile Documents:

Applicants need to provide documents like a business plan, business ownership proof, identity proof, etc.

• Submit the Application:

Fill out the loan application form at the selected bank, where employees assist applicants through the process.

• Submission:

Submit all required documents to the bank. After evaluation, once the application is approved, funds are disbursed directly to the applicant's account.

Driving Modern-Day ‘Stree Shakti’ Through EV Financing

While government programs like the Stree Shakti Yojana lay the foundation for women’s entrepreneurship, private innovators like Revfin are taking this empowerment to the next level, especially in India’s growing electric vehicle (EV) sector. As a digital consumer lending platform, Revfin has recognized and actively supported the rise of women entrepreneurs from Tier 2 and Tier 3 cities who are shaping India’s EV revolution. On Women’s Day 2023, Revfin celebrated this movement through a dedicated event under the theme “Stree Shakti”, spotlighting the achievements of women drivers and fleet operators who are redefining urban mobility. At the event, Revfin shared a milestone statistic: 26% of its total customer base now comprises women borrowers, a testament to its commitment to inclusive financial access.

Women Leading India’s EV Movement

Revfin’s data-driven insights reveal that 24% of EV representation in Tier 2 and Tier 3 markets now consists of women. States like Bihar and Uttar Pradesh lead the charge, with over 5,200 women availing loans to support the EV ecosystem. Revfin’s CEO and Founder, Sameer Aggarwal, shared his perspective: “It’s inspiring to witness women from smaller cities transforming their lives through EV financing. They are not just bread makers, they are becoming breadwinners. At Revfin, our seamless, tech-enabled loan process ensures that every deserving woman gets access to financial support quickly and fairly. Together, we’re building a future where their potential thrives and their families prosper.”

Stories That Inspire

We’ll share with you the story of our customers, Priya Verma and Lakshmi and how they turned their life around with the right financier. Priya Verma is a 32-year-old from Haridwar. Once employed as a security guard, Priya took charge of her life during the lockdown by securing an E-rickshaw loan from Revfin. Today, she earns over ₹20,000 a month, enjoys flexible working hours, and supports her family independently, embodying the true spirit of empowerment. To know more about this story, visit - https://www.youtube.com/watch?v=TVM1rvOUy3g. Lakshmi’s journey was never easy. She once worked as a daily-wage labourer, determined to give her children a better life. But one day, she made a bold decision to take control of her own road. She decided to learn how to drive an e-rickshaw. At first, people laughed. They said, “Women don’t drive rickshaws.” But Lakshmi didn’t stop. She learned, she worked hard, and soon the same people began to say, “She’s the woman of a new generation.” When it was time to buy her e-rickshaw, the biggest question was, who would finance it? That’s when Revfin stepped in. With an easy, paper-light loan process and genuine support, Revfin helped Lakshmi own her vehicle and her future. Today, Lakshmi isn’t just earning for her family; she’s inspiring other women in her community to do the same. Her story reminds us every day, women don’t just run homes; they have the power to drive the nation forward. Want to hear the story from Lakshmi herself? Visit - https://youtube.com/shorts/HKNQGm05b-4?si=5ANGuBp3scBlpSN2 . Similarly, 550 women from Uttarakhand and 362 from Jharkhand have secured EV loans through Revfin, using mobility as a means to social and financial independence. Incorporating digital platforms for handling applications and approvals can reduce delays and make the scheme more accessible to tech-savvy entrepreneurs. Stree Shakti Scheme offers hope to women entrepreneurs in India. Encouraging women to become entrepreneurs is a practical way to enhance economic growth, leveraging their creativity and innovation. This initiative promises unprecedented growth and inclusivity in India's entrepreneurial ecosystem as more women harness its benefits. The economic case for women’s empowerment is as strong as the social case. Programs like the Stree Shakti Scheme bring us closer to a future where women entrepreneurs break new ground, driving the formation of a wealthier and fairer society.

The Road Ahead for Women-Led Growth

As India embraces inclusive entrepreneurship, programs like Stree Shakti Yojana and fintech leaders like Revfin together create a comprehensive empowerment ecosystem. While the Yojana provides the foundation for accessible credit, Revfin adds a digital, inclusive, and innovation-driven layer, empowering women in both traditional enterprises and emerging green sectors like electric mobility. The result is not just financial empowerment but economic equity and sustainable progress. By recognizing and investing in women’s potential, India is not just building businesses, it’s building a stronger, fairer, and more balanced economy for the future.