CHENNAI: The Tamil Nadu government has launched a new scheme, Vetri Magalir Thozhilmunaivor Membattu Thittam, to help women start a business or expand an existing one by increasing access to institutional loans. As part of the initiative, MLAs across the state have been asked to identify 10 prospective women entrepreneurs from each of the 234 Assembly constituencies.
The scheme offers eligible women loans of between Rs 10 lakh and Rs 5 crore through the Tamil Nadu Industrial Investment Corporation (TIIC). The loans carry an interest rate of 9.95% per annum on a diminishing balance basis, and can be repaid over a period of up to nine years.
MLAs have been asked to identify interested women in their constituencies who have the potential to start an enterprise, and submit their profiles to the industries department. The department will examine the profiles and shortlist women based on eligibility and other criteria, following which selected applicants will be supported under the scheme.
Industries and Investment Promotion Minister S Keerthana said in a press release that lack of access to capital often prevented women from turning their business ideas into viable enterprises. “Thousands of women across Tamil Nadu have the ambition, ability and determination to build their own enterprises, but access to capital can often be the barrier between an idea and a business,” she said.
The minister said the scheme was intended to take opportunities to women across the state, and not limit them to major cities or industrial centres. “Our objective is not merely to provide credit. It is to create pathways for women to become entrepreneurs, employers and contributors to Tamil Nadu’s economic growth,” she said.