Financial Inclusivity At The Margins: Policy Review Of Haryana's Mahila Samriddhi Yojana (2021)

Policy Update

Karnavi Shende

BACKGROUND

The Mahila Samriddhi Yojana (MSY) in Haryana was structurally revamped and targeted in 2021 to address deep financial vulnerabilities among marginalized women (Government of Haryana, 2021). Implemented by the Haryana Scheduled Castes Finance and Development Corporation (HSFDC) and the Haryana Backward Classes and Economically Weaker Sections Kalyan Nigam (HBCEWKN), the scheme functions as a targeted financial inclusion model (Ministry of Social Justice and Empowerment, 2025). It operates in close collaboration with central apex corporations, including the National Scheduled Castes Finance and Development Corporation (NSCFDC) and the National Backward Classes Finance and Development Corporation (NBCFDC) (NBCFDC, 2026).

The policy responds to the financing needs of rural and semi-urban women from lower-income groups in Haryana. For women with limited savings and business assets, access to affordable capital is important for starting or expanding income-generating activities. Mahila Samriddhi assistance addresses these needs through beneficiary-specific lending channels; the NBCFDC-supported component, for example, provides concessional microfinance to eligible Backward Classes women entrepreneurs (NBCFDC, n.d.). By supporting access to institutional finance, these interventions aim to strengthen women’s opportunities for self-employment.

FUNCTIONING

The operational architecture of Haryana’s Mahila Samriddhi Yojana relies on a synchronized partnership between central financing bodies, State Channelizing Agencies (SCAs), and grassroots women’s networks (Ministry of Social Justice and Empowerment, 2025). The core objective of the workflow is to deliver ultra-low-interest debt capital either directly to individual women or through organized Self-Help Groups (SHGs) (Ministry of Social Justice and Empowerment, 2025).

Loan Windows and Project Caps: For women entrepreneurs belonging to eligible Backward Classes, the scheme extends debt financing up to ₹1,25,000 per individual beneficiary (Ministry of Social Justice and Empowerment, 2025). For women Safai Karamcharis and Scheduled Caste applicants, the maximum micro-credit project envelope is capped at ₹10,00,000 (NSKFDC, 2023). These funds can be utilized for real micro-enterprise assets, including raw materials, inventory, and small plant machinery (Ministry of Social Justice and Empowerment, 2025).

Financing Pattern and Interest Subvention: The funding pattern is highly concessional. Apex central corporations lend capital to the state channelizing agencies at an interest rate of 1% per annum (NBCFDC, 2026). The SCAs then disburse these funds to final beneficiaries or SHGs at a net interest rate of 4% to 6% per annum (NBCFDC, 2026). Central funds cover up to 95% of the project cost, with the state corporation providing the remaining 5% to 10% as low-cost margin money (Ministry of Social Justice and Empowerment, 2025).

Subsidy Integration and Moratoriums: To reduce debt burdens on vulnerable families, the corporation integrates a direct capital subsidy of 50% of the project cost, capped at ₹10,000 for SC applicants whose annual family income is verified below ₹3 lakh through the state’s Parivar Pehchan Patra (PPP) identity ledger (Government of Haryana, 2021). Loans feature a 90-day to 6-month moratorium period on principal recovery, with the total balance repayable in equal quarterly instalments over a flexible 36-month to 4-year cycle (NSKFDC, 2023).

PERFORMANCE

Since its targeted 2021 restructuring, the Mahila Samriddhi Yojana has significantly expanded the volume of subsidized debt distributed across Haryana’s districts. To improve accessibility, the application workflow was shifted entirely to the state’s Antyodaya Saral online portal, enabling paperless end-to-end tracking (Directorate of Antyodaya Saral, 2024).

Livelihood creation has concentrated on profitable micro-retail and service-based activities. Thousands of women across rural districts like Mewat, Palwal, and Fatehabad have used these loan lines to set up independent garment tailoring shops, boutique centres, dairy micro-units, beauty parlours, and grocery stores (HSFDC, 2024).

According to progress reports issued by the Directorate of Social Justice and Empowerment, linking loan approvals directly to the state’s verified Parivar Pehchan Patra (PPP) registry has streamlined beneficiary selection (Government of Haryana, 2021). This direct alignment ensures that capital subsidies are automatically routed to genuine low-income families with verified annual incomes under ₹1.8 lakh to ₹3 lakh (Government of Haryana, 2021). By channelling resources through pre-graded, active Self-Help Groups, the programme benefits from community peer monitoring, allowing the state’s microfinance portfolio to maintain a stable repayment rate above 92% (HSFDC, 2024).

IMPACT

Household Income and Livelihood Opportunities

Mahila Samriddhi Yojana supports women’s self-employment by providing finance for income-generating activities. Haryana’s official service listings identify separate application channels through HSFDC and the Haryana Backward Classes and Economically Weaker Sections Kalyan Nigam (National Government Services Portal, n.d.). Access to enterprise capital can help women purchase equipment and working materials, potentially adding a supplementary source of household income. However, sustained income gains depend on business demand, operating costs and women’s control over earnings; these outcomes should not be treated as established without Haryana-specific beneficiary evidence.

Access to Affordable Credit

Under the NBCFDC-supported Mahila Samriddhi component, eligible beneficiaries receive loans at 4% annual interest, repayable in quarterly instalments within four years, including a six-month moratorium on principal recovery (NBCFDC, n.d.). These concessional terms provide an institutional credit option for women seeking to establish or expand income-generating activities. The moratorium postpones principal recovery during the initial business period, although borrowers must still plan for subsequent instalments. The scheme may reduce dependence on expensive informal borrowing, but claims that it has eliminated predatory debt or enabled repayment of legacy loans require separate evidence.

Digital Access to Formal Financial Services

Haryana provides online application services for Mahila Samriddhi assistance, requiring applicants to register before applying through the relevant implementing agency (National Government Services Portal, n.d.). This creates a digital route for seeking institutional finance, but should not be equated with mandatory online banking or demonstrated improvements in financial literacy. Assisted application support and guidance on loan terms could help women participate more independently in the process. Any claim that the scheme has improved digital skills, brought previously unbanked women into banking, or increased access to subsequent commercial loans should be supported by beneficiary-level data.

EMERGING ISSUES

Saturated Micro-Retail Markets: A large majority of loan applications are concentrated in a few traditional areas, such as boutique tailoring, beauty parlours, and basic grocery setups (HSFDC, 2024). This lack of diversification causes local market saturation, creating intense local competition that compresses profit margins for individual entrepreneurs.
Administrative Delays and Inter-Agency Friction: While the front-end application process on the Saral portal is digital, the back-end evaluation process still faces bottlenecks (Directorate of Antyodaya Saral, 2024). Delays in coordination between state corporation offices and commercial banks can stretch the loan processing cycle over several months, disrupting start-up timelines for micro-enterprises.
The “Male Proxy” Enterprise Trap: Due to traditional land and business asset ownership patterns in rural Haryana, some women function as nominal borrowers while male family members retain full operational control over the business capital and cash flows, limiting direct female economic empowerment (Sharma & Ahluwalia, 2025).
Digital Access Barriers: Gaps in internet connectivity in remote blocks, combined with low independent smartphone access among the poorest women, force many applicants to rely on commercial cyber-cafés or Common Service Centres (CSCs) to register, exposing them to processing errors (Directorate of Antyodaya Saral, 2024).

WAY FORWARD

Strategic Shift to High-Value Technical Sectors: The HSFDC should actively guide applicants away from saturated markets by offering higher loan brackets for technical, non-traditional fields. Introducing specialized funding tranches for custom-hiring centres, eco-packaging units, solar maintenance equipment, and mobile repair setups will improve profit potential.
Automated Real-Time Portal Linkages: Upgrade the state’s digital infrastructure by linking the Antyodaya Saral portal directly to bank loan processing engines via secure APIs (Directorate of Antyodaya Saral, 2024). This system integration will reduce manual paperwork and shorten the turnaround time between application submission and final bank disbursement.
Mandatory Business Mentorship Hubs: Group loan approvals with formal enterprise training programmes. Partnering with localized Rural Self Employment Training Institutes (RSETIs) will ensure that every borrower receives basic training in market pricing, supply chains, and digital payments before capital release.
Establishing E-Commerce Aggregator Linkages: The state government should establish dedicated partnerships with national e-commerce and logistics platforms to list products made by rural SHGs under a unified state brand. Providing access to broader urban markets will help individual village units grow beyond highly competitive local economies.

REFERENCES

Directorate of Antyodaya Saral. (2024). Citizen service delivery metrics and digital application trends for Haryana welfare schemes. IT Department, Government of Haryana. https://www.india.gov.in/services/details/apply-for-mahila-samiriddhi-yojna-for-backward-classes-haryana

Government of Haryana. (2021). Mahila Samriddhi Yojana: Scheme guidelines and beneficiary verification framework. Department of Social Justice & Empowerment. https://www.prharyana.gov.in/en/the-haryana-government-through-the-haryana-scheduled-caste-finance-and-development-corporation-is

Haryana Scheduled Castes Finance and Development Corporation (HSFDC). (2024). Performance review and operational statistics of welfare schemes. Department of Social Justice & Empowerment, Government of Haryana. https://hscfdc.org.in/

Ministry of Social Justice and Empowerment. (2025). Operational framework and guidelines of the Mahila Samridhi Yojana (MSY). Government of India. https://www.dosje.gov.in/schemes-and-services/mahila-samridhi-yojna-msy/

National Backward Classes Finance and Development Corporation (NBCFDC). (2026). Lending patterns and interest subvention directives for state channelizing agencies. Ministry of Social Justice and Empowerment, Government of India. https://nbcfdc.gov.in/nbcfdc/web/en/loan_scheme_description

National Safai Karamcharis Finance and Development Corporation (NSKFDC). (2023). Annual report and progress briefings on women’s micro-credit portfolios. New Delhi. https://www.myscheme.gov.in/schemes/msynskfdc-h

ABOUT THE CONTRIBUTOR

Karnavi Shende is a Research and Editorial Intern at IMPRI. She holds a Master’s in Politics, specializing in International Relations, from Jawaharlal Nehru University, New Delhi. Her interests include International Relations, Strategic Studies, Public Policy, Gender, and Human Rights, with a focus on policy research and contemporary governance challenges.

ACKNOWLEDGEMENTS

The author extends sincere gratitude to the reviewers (Aditya Chavan and Tanisha) and the IMPRI team for their expert guidance and constructive feedback throughout the process.