Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme for Women

Introduction

Women have been among the most disadvantaged and oppressed section of our country about access to and control over resources. Problems faced by them continue to be grave particularly for illiterate &semi-literate women of rural and urban areas to alleviate their problems, Govt. of India launched a scheme entitled ” Trade Related Entrepreneurship Assistance and Development” (TREAD) The scheme envisages economic empowerment of such women through trade related training, information and counselling extension activities related to trades, products, services etc.

TREAD Guidelines Scheme for Women pdf

TREAD PDF pdf


About the Scheme

Experience has revealed that apart from counselling and training, delivery of credit poses the most serious problem for the poor women. There is also dearth of information about existing status of women and their common needs for providing necessary support. Since such women are not able to have an easy access to credit, it has been envisaged that the credit will be made available to women applicants through NGOs who would be capable of handling funds in an appropriate manner. These NGOs will not only handle the disbursement of such loans needed by women but would also provide them adequate counselling, training and Assistance in developing markets.


What the scheme covers

Credit

Credit to Projects – Government Grant up to 30% of the total project cost as appraised by lending institutions which would finance the remaining 70% as loan Assistance to applicant women, who have no easy access to credit from banks due to their cumbersome procedures and the inability of poor & usually illiterate/semi-literate women to provide adequate security demanded by banks in the form of collaterals activities in non-farm sector.

For example, if an NGO submits project(s) for several individual or group(s) women say for Rs. 50,000 each for a group of 50 women, then the loan amount required by 50 women would be Rs. 25 lakhs. To it would be added the expenditure that the NGO will make in training / counselling of staff, part expenses on operationalising a management and monitoring system, vehicles, charges for legal documentation, training of loaners, auditors fees charged. Say duly approved by lending institutes, it works out to be Rs. 15 lakhs. Then the total project cost would be Rs. 25 + 15 = 40 lakhs. The GOI grant would be maximum up to Rs. 12 lakhs (30% of Rs. 40 lakhs).


Training & Counselling

Training organizations viz. Micro, Small and Medium Enterprises (MSMEs), Entrepreneurship Development Institutes (EDIs), NISIET and the NGOs conducting training programmes for empowerment of women beneficiaries identified under the scheme would be provided a grant up to maximum limit of Rs. 1.00 lakh per programme provided such institutions also bring their share to the extent of minimum 25%(10% in case of NER) of the Government grant. The batch size for such a training activity will be at least 20 participants. Duration of the training programme will be minimum one month.

For example, if a mention institution or eligible NGO wants to conduct a pre-or-post-project training programme for a group of women then the maximum GOI grant can be Rs.1.0 lakh provided the NGO also raises 25% of the requested grant i.e. the total expenditure of the training expenditure can be up to Rs. 1.25 lakhs for availing full assistance of GOI grant.


Eliciting Information on Related Needs

Credit to Projects – Government Grant up to 30% of the total project cost as appraised by lending institutions which would finance the remaining 70% as loan Assistance to applicant women, who have no easy access to credit from banks due to their cumbersome procedures and the inability of poor & usually illiterate/semi-literate women to provide adequate security demanded by banks in the form of collaterals activities in non-farm sector.

For example, if an NGO submits project(s) for several individual or group(s) women say for Rs. 50,000 each for a group of 50 women, then the loan amount required by 50 women would be Rs. 25 lakhs. To it would be added the expenditure that the NGO will make in training / counselling of staff, part expenses on operationalising a management and monitoring system, vehicles, charges for legal documentation, training of loaners, auditors fees charged. Say duly approved by lending institutes, it works out to be Rs. 15 lakhs. Then the total project cost would be Rs. 25 + 15 = 40 lakhs. The GOI grant would be maximum up to Rs. 12 lakhs (30% of Rs. 40 lakhs).

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