TREAD Scheme for Women

The Trade Related Entrepreneurship Development Assistance Scheme (TREAD) was launched by the Government of India with the main aim of promoting women entrepreneurs. Up to 30% of the total value of the project (as appraised by the bank) is provided as financial assistance by the government under the scheme. The remaining 70% will be provided by the bank.

The main objective of the scheme is to provide poor women with sustainable employment by developing their technical skills and entrepreneurial capabilities via various support services. Apart from training and counselling, delivery credit is a major problem that is faced by poor women.

Since it is difficult for poor women to access credit, therefore, a credit will be made available to them via NGOs who are capable of handling the funds in a responsible manner. Apart from providing the funds, the NGOs will also ensure that training and counselling will be provided to poor women.

Eligibility Criteria and Documents Required

NGOs must submit the application form with the necessary experience details showing their performance in managing development projects for poor women.

The list of documents that must be submitted are mentioned below:

  • Identity Proof: Any of the below-mentioned documents can be submitted as proof of identity:
    • Permanent Account Number (PAN) Card
    • Aadhaar Card
    • Voter ID
    • Driving License
    • Last 3 years Audited Accounts.
  • If the NGO has any prior work experience, the relevant documents must be submitted.
  • Funding source.
  • Address Proof: Any of the below-mentioned documents can be submitted as proof of address:

Application Procedure

In order to apply for the scheme, applicants must visit the nearest Micro, Small and Medium Enterprise (MSME) Development Institute. Once the application form is submitted with the relevant details and documents, the request will be processed by the concerned official.

Salient Features of the TREAD Scheme

The main features of the TREAD scheme are mentioned below:

  • Credit: Up to 30% of the total cost of the project is provided by the Government of India. The remaining 70% is provided by the financial institution that appraises the project. Access to credit is provided to poor women who find it difficult to get credit from various banks because of the strict procedures and the requirement to provide collateral or security.

The government provides assistance via NGOs who are engaged in assisting poor women make some kind of income in the non-farm sector. The credit that is provided will include any expenditure spent on a monitoring system as well for the training of staff.

  • Training and Counselling: Counselling and training are provided by the below-mentioned organisations who also contribute a minimum of 25% of the cost:
    • NGOs
    • NISIET
    • MSMEs
    • Entrepreneurship Development Institutes (EDIs)

The women beneficiaries who are eligible for the scheme will be provided a credit of up to Rs.1 lakh for each programme. Each batch must have a minimum of 20 participants and can be for a duration of one month.

  • Eliciting Information on Related Needs: The state government provides credit for the below-mentioned institutions:
    • MSME-Dis
    • IIE
    • NIESBUD
    • NIMSME
    • EDIs

The above-mentioned institutions must design training modules, evaluation studies, field surveys, and research studies that are part of the scheme. For each project, a maximum of Rs.5 lakh is provided by the government.

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