TREAD Scheme for Women: Objectives, Eligibility, Documents, and Benefits

Learn about the TREAD scheme, its objectives, eligibility criteria, required documents, application procedure, and benefits. Empower women entrepreneurs today!
Business Loan
4 min
18 December 2024

What is the TREAD scheme?

The TREAD (Trade Related Entrepreneurship Assistance and Development) scheme aims to empower women entrepreneurs by providing financial support and skill development opportunities. It addresses the challenges women face in accessing funds and training, promoting their active participation in the business environment. By combining financial assistance with capacity-building initiatives, the scheme fosters sustainable entrepreneurship, strengthening women-led enterprises and contributing to economic growth in India’s micro, small, and medium enterprise sectors.

Objective of the TREAD scheme

The TREAD scheme focuses on empowering women entrepreneurs through financial aid, training, and business development services.

  • To provide credit through financial institutions for women-led MSME ventures
  • To offer skill development training to enhance entrepreneurial capabilities
  • To encourage participation of women in income-generating activities
  • To support non-governmental organisations (NGOs) in facilitating credit delivery
  • To improve the socio-economic status of women by fostering self-reliance

Eligibility criteria for registration under the TREAD scheme

Women entrepreneurs and NGOs must meet specific eligibility criteria to register under the TREAD scheme.

  • Applicants should be women-led enterprises or NGOs working in entrepreneurship development
  • Women entrepreneurs must belong to the economically weaker sections
  • NGOs must have a proven track record in promoting women entrepreneurs
  • The business must qualify as a micro or small enterprise
  • Applicants must adhere to the operational guidelines specified by the scheme

Documents required for TREAD scheme

Providing accurate and complete documents ensures faster processing of applications under the TREAD scheme.

  • Business registration certificate or proof of enterprise ownership
  • Identity proof, such as Aadhaar or PAN card
  • Address proof, including utility bills or rental agreements
  • Detailed business plan outlining objectives and funding requirements
  • Financial documents like bank statements and income tax returns

Application procedure for TREAD scheme

The application process for the TREAD scheme is simple and efficient.

  • Identify eligible NGOs or financial institutions associated with the scheme
  • Submit a detailed business plan to the concerned authority
  • Provide required documents, including proof of identity and business ownership
  • Undergo skill development training, if applicable
  • Await approval and disbursement of funds after verification

Benefits of the TREAD scheme

The TREAD scheme offers multiple benefits to women-led micro, small and medium enterprises.

  • Provides financial support through credit-linked assistance
  • Offers skill development programmes to enhance business acumen
  • Encourages women to participate in entrepreneurial ventures
  • Facilitates NGO involvement for effective credit delivery
  • Promotes self-reliance and economic independence for women entrepreneurs

Conclusion

The TREAD scheme is a transformative initiative supporting women entrepreneurs through financial aid, training, and business development services. By fostering entrepreneurship and addressing barriers, the scheme creates opportunities for sustainable growth in the business environment. Women-led enterprises can utilise this scheme to thrive and contribute to India’s economic development. Additionally, exploring a business loan can further support financial requirements, ensuring long-term success and stability for emerging businesses.

Frequently asked questions

What is the full form of TREAD?
The full form of TREAD is Trade Related Entrepreneurship Assistance and Development. This scheme is an initiative by the Government of India to support women entrepreneurs, especially from economically weaker sections, by providing financial assistance, skill development training, and capacity-building support. It aims to empower women-led businesses and improve their participation in India's micro, small, and medium enterprise sector.

What is the purpose of the TREAD scheme?
The TREAD scheme aims to empower women entrepreneurs by providing credit, skill development, and business development services. Its purpose is to promote sustainable entrepreneurship among women, especially those from economically disadvantaged sections, by addressing their financial and training needs. Additionally, it supports NGOs in facilitating credit delivery and capacity-building, fostering self-reliance and enhancing women’s role in the business environment.

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