Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme

The Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme is a lending initiative by the Government of India aimed at women. It provides financial support to encourage their participation in micro, small, and medium enterprises (MSMEs). The scheme helps create employment opportunities for economically disadvantaged women.

This scheme is accessible to both urban and rural women, through which the government provides 30% of the project cost as a loan. Non-governmental organisations (NGOs) receive 30% of the project cost from the government, assisting women entrepreneurs by providing an additional 30% of the funding. Banks or NBFCs finance the remaining 70% of the cost.

The primary aim is to assist poor women develop their entrepreneurial skills and grow in the business environment. This focuses on providing financial aid and delivering skills through training by NGOs. Other objectives include:

• Strengthening NGOs to offer skill transfer and training to women entrepreneurs

• Providing credit as financial support for poor women entrepreneurs through financial institutions

• Encouraging women to engage in the business environment

• Supporting NGOs in providing credit assistance to women for faster credit delivery

• Promoting self-reliance among women

The benefits of the TREAD scheme for women include financial assistance along with skill development and counselling. Some key benefits are listed below.

• Financial Assistance and Loan Support

It provides a 30% subsidy on the total cost of the business project. The routing of the loans from banks for the remaining 70% of the cost is done through NGOs, making it quick and easy for poor women to receive funds. 

• Skill Development and Training Programs

Training programs are conducted by recognised institutions to empower women entrepreneurs. The women beneficiaries identified receive a grant of up to ₹1 Lakh, where the program lasts for 1 month with one batch of around 20 women in total. 

The institutions included are Entrepreneurship Development Institutes (EDIs), MSMEs, National Institute of Small Industry Extension Training (NISIET), and NGOs. 

• Support for State-sponsored Institutions

Institutions sponsored by the state government get funding of up to ₹5 Lakhs to design training modules. These institutions include EDIs, National Institute for Micro, Small and Medium Enterprises (NIMSMEs), National Institute for Entrepreneurship and Small Business Development (NIESBUD), Indian Institute of Entrepreneurship (IIE), and MSME – Development Institute.

As this scheme targets NGOs and offers benefits to identified women in rural and urban areas, the eligibility criteria apply to the NGOs. The criteria include:

• The NGO needs to be a legal entity with at least 3 years of registration

• It needs to have experience in thrift and savings programmes with individuals or SHGs

• It has to be involved in income generation activities and entrepreneurship for women

• It must have a qualified staff, basic infrastructure, and services to carry out micro-enterprise development for women

• It needs to be eligible for government assistance (not blacklisted by any government department under any scheme)

• It must not have any pending released government assistance, known as the Utilisation Certificate overdue

Documents required for the TREAD yojana include address proof, identity proof, and income proof. Here are the details:

• Proof of enterprise ownership or business registration certificate

• Identity proof such as Aadhaar card, driving licence, voter ID, or PAN card

• Address proof such as utility bills, passport, Aadhaar card, or rent agreement

• Financial documents such as bank statements or Income Tax Returns (ITR)

• Audited account records for the past 3 years

• Details of funding sources

• Any documents proving work experience, if applicable

Here are the steps you need to follow to apply for the TREAD scheme. 

1. Visit the nearest MSME Development Institute’s office

2. Fill the application form and attach the required documents

3. The official will process your application, and you will receive an update after verification

4. Once all formalities are complete, you will receive funds in your account

The TREAD scheme for women entrepreneurs provides financial assistance to disadvantaged entrepreneurs. It offers training, support, and skill development services, which help boost the economy. This enables women entrepreneurs to become self-reliant, ensuring long-term success and creating more employment opportunities. 

It also fosters sustainable business prospects for women within India's business environment.

The TREAD scheme promotes opportunities and skill development among women, but it faces several challenges. Reaching women in remote areas is difficult, which hinders the programme’s scalability. The challenge of reaching women in rural areas has to be addressed to ensure sustainable growth.

The future outlook lies in expanding its reach to a wider base of women beneficiaries. In the future, it needs to implement and leverage technology for skill development, which will cater to the needs of all women entrepreneurs.