What this scheme offers
Individually, a rural woman looking to borrow money to start a livelihood activity has few good options besides an informal lender charging punishing interest. UMED works differently: it channels women into registered self-help groups first, has them build a track record of regular savings and meetings over at least two years, and only then connects mature groups to bank-linked credit — up to ₹20 lakh at a concessional 4% annual interest, repayable over about three years. The idea is that a group with two years of discipline behind it is a far better credit risk than any individual borrower with no track record, and banks lend accordingly at rates that would never be offered to an individual in the same position.
Who is eligible
- Registered women's Self Help Group (SHG), active for at least 2 years.
- Group formally linked to UMED (Maharashtra State Rural Livelihood Mission).
- Regular savings history and documented meeting minutes.
- Active SHG bank account.
- Member households' annual family income below ₹3 lakh.
Documents required
- SHG registration certificate
- UMED linkage proof
- SHG bank account statements / passbook
- Meeting minutes register
- Aadhaar cards of group members
How to apply
- Your SHG must first be formed and linked to UMED — if not yet linked, contact your Block Development Officer (BDO) or visit umed.in to begin that process.
- Once your group has 2+ years of savings and meeting history, approach your BDO or UMED cluster coordinator to apply for bank linkage.
- UMED endorses eligible groups, after which the group approaches its linked bank for the actual loan.
- The bank disburses funds to the SHG's group bank account, not to individual members.
- Funds are typically used for shared or individual livelihood activities — agriculture, dairy, small manufacturing, or trading — as agreed within the group.