Do you want to know about the Mahila bachat gat loan? If yes, then you have come to the right place. This article has been made available to you after a lot of offline and online research.

In this blog, what is Mahila bachat gat(MBG) loan?, how many types of MBG loans are there, what will be the eligible criteria, what is the benefit, and what is the repayment option, all these things will be looked at.

Before knowing what is Mahila bachat gat(MBG) loan, let us understand what is Mahila bachat gat

Mahila bachat gat is a self-help group for women of India with the aim of empowering women. This concept came to India around the 90s.

And with its help provides a platform for women to save money and engage in income-generating activities.

Table Of Contents

1 What is Mahila bachat gat loan

What is Mahila bachat gat loan

Mahila bachat gat loan is a type of loan (or a product in technical language), but this loan is provided only to self-help groups run by women.

The only importance of this loan is to make all the women’s Self-help Groups economically strong and encourage them to work.

In today’s emerging India, only men are not working, with the help of women’s self-help groups in every village of the country, they are becoming economically strong and working to take the country forward.

So that’s why the bachat gat loan is very important. This loan is provided in the bank, in small finance institutes, and by different financial institutes

And the speciality of this loan is that the interest rate of this loan is slightly lower than other bank’s loans.

Because the importance of this loan is to boost the economy of the country by making all the women of the country financially independent

Types of Mahila bachat gat loan

How many types of these loans are there, if this question is coming in your mind, then I will tell you, it depends on the policy of the government, the government’s plan and the bank.

Below is about some common bachat gat loans

Educational loans
Gold Loans
Agricultural loans
Equipment loans
Micro loans
Term loan
Working capital loan

What are the eligibility criteria for bachat gat loan

The eligibility criteria for a loan mainly depend on the financial institution or bank, however, the common eligibility criteria are applicable for all such as –

Membership
Age
Repayment Capacity
Purpose of loan
Collateral

Membership:- You must be a member of that self-help group and there should be a minimum of 10 to 20 group members in that group and your bank account should be active.

Age:- According to most financial institutions and banks, you should be above 21 years of age.

Repayment Capacity:- In many banks, they fix the loan amount by looking at the annual income of that female member, her total assets and how much she spends.

Purpose of loan:- This loan is provided to you only for income-generating work and you have to submit the progress report of your work to your bank

Collateral: –Collateral is not required in most of the banks for this loan but some banks ask for collateral. It can be anything, it depends on the loan

What is the interest rate of bachat gat loan

The interest rate of this loan is mostly very low, yet it also depends on the bank. Government support is another reason for the low interest rate of this loan.

The annual interest rates for Mahila bachat gat Loan range from 4% to 10%

Loan tenure for bachat gat loan

The loan tenure depends on the project of the group and the terms and conditions of both parties but the repayment period for this loan can range from 6 months to several years.

Benefits of Mahila bachat gat loan

Such loans have many advantages which are detailed below-

Affordable loan
Government support
Employment
Financial stability
Reduce Poverty
Skill development
Entrepreneurship promotion
Social empowerment

Affordable Loan: – These loans are available for the Self Help Group at a very low rate, which helps in expanding the group and gives enthusiasm to work.

Government support:- Due to the support of the government, women are sure of one thing that if they want to expand their work and business, then there is a possibility of getting a loan.

Employment:- Due to this loan women can earn by working and women become independent

Financial stability:- Many women of India who could not do anything due to money, today due to the same women self help group, they are doing their work and running their family well.

Reduce Poverty:- There are many families in India who live below the poverty line, but today they have come above the poverty line by doing their work because of this loan and self-help group.

Skill development:- The other advantage of self-help groups is that from time to time all the groups are given skill training, you can improve the skills you had before and you can expand your work and earn more money.

Entrepreneurship promotion:- With these loans and self help groups, many women become very specialized in their work and later they can open their own companies and give work to other people.

Social empowerment:- Through this loan, many of these women are leading their communities and raising social awareness.

How to apply for Mahila bachat gat loan

To apply for this loan one has to go through the steps mentioned below:-

First, you have to form a self help group of women.
Now you have to register this self help group officially like under your village panchayat or municipality
Next, you need to open an official bank account in the name of your self help Group with the signatures of all the members.
Now apply for the loan by going to the nearest bank as per your convenience where all the documents will be provided to you.
Now you can apply for a loan according to your purpose.
Wait for the loan after document verification.

And you have to keep in mind once that how much loan amount you will get, it all depends on the bank’s policy and government rules and regulations.

Documents required for bachat gat loan

What documents are required mostly depends on bank and government policies, yet there are some common documents that help you when getting a loan.

Identity proof of all the members like aadhar card pan card etc.
Address proof of all members is required.
Self-group registration certificate and.
Bank account details

Final Thought about Mahila bachat gat loan

There are many women in India who are not able to do anything even after being skill full due to money and even after having a strong desire to work, hope has to be given up.

But after the advent of self-help groups, most of the women started working. And along with herself, she is also inspiring other women in society to move forward.

Before taking this loan, it is necessary to check the terms and conditions of all the banks thoroughly.

You, people, need to keep one thing in mind the loan amount eligibility criteria, and interest rates can be different in each bank.

Mahila bachat gat loan: Quick Loan Guide For You [2023]