Global Alliance of Mass Entrepreneurship (GAME) signs an MOU with National Rural Livelihood Mission (NRLM) to enable financial access for 10 lakh nano women entrepreneurs
New Delhi: Global Alliance for Mass Entrepreneurship (GAME) has signed an MoU with DAY – National Rural Livelihood Mission (NRLM) to enable financial access for the growth of 10 lakh women entrepreneurs over 3 years. The MoU was exchanged by Shri Nagendra Nath Sinha, Secretary of Department of Rural Development, Government of India and Suresh Gundappa, CEO, GAME at Vigyan Bhavan in Delhi.
As per the MoU, GAME and NRLM will strengthen non-farm livelihoods by building the capacity of women entrepreneurs (WEs) to access finance and grow their enterprises. This will be achieved by launching schemes, digital tools, and building capacities of the NRLM and SRLM teams. The program will focus on capacity building of stakeholders and bankers from public sector banks, digitally-led NBFCs and small finance banks that are able and willing to lend to women entrepreneurs in order to smoothen the capital flow to this segment. In line with this, another key objective is to identify and train ‘VittaSakhis’ from SHGs who can help WEs. VittaSakhis will educate WEs on how they can apply for and benefit from government schemes/ compliances and onboard them onto digital tools for building their enterprise.
While there are adequate funds available for SHGs, there is a need for a credit enhancement mechanism to provide loans to women entrepreneurs. The right credit evaluation techniques and tools to financial institutions and by implementing the right processes, there is a potential to disburse Rs.1,300 crore worth of loans to women entrepreneurs from Self Help Groups. The funding will be provided by NRLM and banks & NBFCs who will be part of this initiative.
“Lack of proper access to finance has created huge impediments in the growth of women entrepreneurship. Currently the financing gap stands at 12 trillion rupees. This needs to be addressed with impending urgency, and this partnership aims to smoothen the flow of formal and sustainable credit to underserved Women Entrepreneurs. This program has the potential to support existing women to grow their enterprises, allow more women to start their businesses and in the process create employment opportunities for their communities,” said Mr Madan Padaki, Co-Founder, GAME
Adding, Mr Suresh Gundappa CEO, GAME said “Catalysing the entrepreneurial and financial ecosystem, this partnership also seeks to strengthen the capabilities of different stakeholders. Trainers will support women entrepreneurs to access different government schemes/compliances, on-board marketing tools for building their enterprises and participate in incubation programs to empower more women to start their enterprises.”