TITLE OF THE INTERNSHIP:

HDFC BANKING-WOMEN EMPOWERMENT SCHEMES

STUDENT NAME WITH UUCMS NUMBER:

VASUNDAHARA.N U01AI21C0165

NAME OF THE FACULTY:

Prof. Vanitha N
Assistant professor
Department of commerce
MWCMC, Mysore.
ACADEMIC YEAR- 2023-24

Maharani’s Women’s Commerce and Management College.

Valmiki road, Paduvarahalli, Mysore 570012
DECLARATION:
This is to certify that the “Internship report” titled HDFC Banking Women Empowerment
Schemes is submitted by Ms.Vasundhara.N (U01AI21C0165). The report is prepared and
submitted during the academic year 2023-24 in partial fulfilment of her academic requirement to
complete B.com degree from University of Mysore.

Signature of the Faculty Signature of the Student

Signature of the HOD. Signature of the Principal

HDFC BANKING-WOMEN EMPOWERMENT SCHEMES
TABLE OF CONTENTS FOR C1 AND C2 REPORTS SHALL BE AS UNDER:

C1 REPORT

CHAPTER CHAPTER TITLES & CONTENTS PAGE NO

NO
1 Introduction 1
2 Need and significance of the study 2
3 Scope of the study 3-4
4 Conceptual Frame Work 5-6
5 Objective & Methodology 7-8
6 About the start-up chosen for the 9-14
study
7 Data collected for the study 15-18
- Features of business loan for
Women
- Benefits
- Home loan benefits for women
in India
C2 REPORT
CHAPTER NO CHAPTER TITLES & PAGE NO
CONETNTS
8 Data Analysis & 19-23
Interpretation
-PM Mudra Yojana

-Financial Literacy
-Saving Habit Loan
Behaviour
9 Summary of findings 24-25
-Distribution of the
source of loan
10 -Conclusion 26
 1
I. CHAPTER 1- INTRODUCTION:

This was done as part of RBI's policy for liberalisation of the Indian banking industry in 1994.
HDFC Bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its
registered office in Mumbai, India. The bank commenced operations as a Scheduled Commercial
Bank in January 1995.

HDFC Bank was incorporated in 1994 as a subsidiary of the Housing Development Finance
Corporation, with its registered office in Mumbai, Maharashtra, India. Its first corporate office and
a full-service branch at Sandoz House, Worli were inaugurated by the then Union Finance
Minister, Manmohan Singh.

Aditya Puri :
Aditya Puri is a senior advisor at The Carlyle Group. He was the managing director of HDFC
Bank, India's largest private sector bank. He assumed this position in September 1994. Puri was
the longest-serving head of any private bank in the country.

HDFC Bank deals with three key business segments:

1) Wholesale Banking Services

2) Retail Banking Services

3) Treasury.

WHOLESALE BANKING:

It provides loans, non-fund facilities and transaction services to corporate, public sector units,
government bodies, financial institutions and medium scale enterprises, and other banking
business, segment includes income from banking activities, such as credit cards, debit cards, third
party product distribution, primary dealership business and the associated costs.

RETAIL BANKING SERVICES

It serves retail customers through a branch network and other delivery channels.
 2

II. CHAPTER 2 - NEED AND SIGNIFICANCE OF STUDY:

I. Understanding HDFC’s loans and advances and eligibility criteria:

 HDFC Bank’s Focused programs for Women’s Empowerment –

HDFC Bank Business Loan
HDFC Car Loan
HDFC Credit Loan
HFDC Gold Loan

II. An impact evaluation study of sustainable live hood initiative:

 Executive Summary:

Objectives of the Study Sustainable Livelihood Initiative (SLI), a microfinance program under the
CSR (Corporate Social Responsibility) initiative of HDFC bank, is aimed at the financial and
social empowerment of women through the mediums of Self-Help Groups (SHGs) and Joint
Liability Groups (JLGs). It adopts a multi-pronged approach of provisioning credit, financial
literacy training and other services. Since this program has been running for more than a decade,
it becomes even more important to measure its impact on rural women and their households.
Against this backdrop, the report presents the findings from the impact evaluation study conducted
by the Centre for Digital Financial Inclusion on the impact of the Sustainable Livelihood Initiative
(SLI) in the states of Maharashtra, Madhya Pradesh, and Tamil Nadu. The results reflect a positive
effect of the SLI programmed in general, thereby offering insightful observations, which could be
translated into better policy outcomes.
 3
III. CHAPTER 3 - Scope of the study:

1. Overview of HDFC includes brief history and background of HDFC:

His was done as part of RBI's policy for liberalization of the Indian banking industry in
1994. HDFC Bank was incorporated in August 1994 in the name of HDFC Bank Limited,
with its registered office in Mumbai, India. The bank commenced operations as a
Scheduled Commercial Bank in January 1995.
HDFC Bank was incorporated in 1994 as a subsidiary of the Housing Development Finance
Corporation, with its registered office in Mumbai, Maharashtra, India. Its first corporate
office and a full-service branch at Sandoz House, Worli were inaugurated by the then Union
Finance Minister, Manmohan Singh.
2. Types of loans and advances provided by HDFC:
o HDFC Bank Business Loan.
o HDFC Car Loan.
o HDFC Credit Card.
o HDFC Debit Card- Features & Benefits, Types, How to Apply & Charges.
o HDFC Education Loan.
o HDFC Gold Loan.
o HDFC Home Loan - Interest Rate @8.70% p.a.
o Onwards.
o HDFC Bank Loan Against Property.
3.Eligibility criteria for loans and advances:
o Geographic location
o Monthly Income
o Ownership of property.
o Existing credit.
o Employer.
o Credit history.

You need to be between the ages of 21-60 years.

 4
You need to have a job for at least two years, with a minimum of 1 year with your current employer.
You need to have a net income of 25,000 per month.

4.Impact analysis of HDFC financial assistance of borrowers and economy:

The trailing twelve-month earnings per share (EPS) of the bank stands at Rs 68.6, an improvement
from the EPS of Rs 57.7 recorded last year. The price to earnings (P/E) ratio, at the current price
of Rs 1,469.9, stands at 22.0 times its trailing twelve months earnings.

5.To conclude the study with Major identification of the study:

HDFC Bank deals with three key business segments:
1) Wholesale Banking Services
2) Retail Banking Services
3) Treasury.
WHOLESALE BANKING
It provides loans, non-fund facilities and transaction services to corporate, publicsector units,
government bodies, financial institutions and medium scale enterprises, and other banking
business, segment includes income from banking activities, such as credit cards, debit cards, third
party product distribution, primary dealership business and the associated costs.
RETAIL BANKING SERVICES
It serves retail customers through a branch network and other delivery channels.
Acknowledgments CDFI would like to express gratitude to the HDFC Bank CSR Team for
commissioning the evaluation of the Sustainable Livelihood Initiative. We are grateful for their
constant support and insightful reviews, which proved to be tremendously useful through the
study. We would also like to extend our thanks to the KREA-LEAD Team, along with the group
of enumerators, for their sustained support in the collection of the survey data, working tirelessly
at the field locations and bringing in quality data. Lastly, we are immensely grateful to all the
households for lending us their valuable time to interact with the enumerators and patiently
providing sincere responses for the study.
 5
IV. CHAPTER 4 - Conceptual Frame Work:
“To call woman the weaker sex is a libel; it is man’s injustice to woman. If by strength is
meant brute strength, then, indeed, woman is less brute than man. If by strength is meant
moral power, then woman is immeasurably man’s superior: Has she not greater intuition, is
she not more self-sacrificing, has she not greater powers of endurance, has she not greater
courage? Without her man could not be. If non-violence is the law of our being, the future is
with woman. Who can make a more effective appeal to the heart than woman?”
-Mahatma Gandhi

Empowerment of women is essentially the process of upliftment of economic, social and political
status of women, the traditionally underprivileged ones, in the society. It is the process of guarding
them against all forms of violence. Women empowerment involves the building up of a society, a
political environment, wherein women can breathe without the fear of oppression, exploitation,
apprehension, discrimination and the general feeling of persecution which goes with being a
woman in a traditionally male dominated structure. Deepa Narayan in her edited book ‗Measuring
Empowerment (www.oup.com) takes ― Empowerment as the expansion of assets and capabilities
of poor people to participate in, negotiate with, influence control and hold accountable institutions
that affect their lives
Women’s empowerment is very essential for the development of society. Empowerment means
individuals acquiring the power to think and act freely, exercises choice and fulfil their potential
as full and equal members of society. As per the United National Development Fund for women
(UNIFEM), the term women’s empowerment means:

 Acquiring knowledge and understanding of gender relations and the ways in which these
relations may be changed.

 Developing a sense of self-worth, a belief in one’s ability to secure desired changes and the right
to control one’s life.

 Gaining the ability to generate choices exercise bargaining power.

 6
 Developing the ability to organize and influence the direction of social change, to create a more
just social and economic order, nationally and internationally.

Thus, empowerment means a psychological sense of personal control or influence and a

concern with actual social influence, political power and legal rights. It is a multilevel construct
referring to individuals, organizations and community. It is an international, ongoing process
centered in the local community, involving mutual respect, critical reflection, caring and group
participation, through which people lacking an equal share of valued resources gain greater
access to the control over these resources.
 7

V. CHAPTER 5 - Objectives:

1.To understand the various types of loans and advances offered by HDFC:
o HDFC Bank Business Loan.
o HDFC Car Loan.
o HDFC Credit Card.
o HDFC Debit Card- Features & Benefits, Types, How to Apply & Charges.
o HDFC Education Loan.
o HDFC Gold Loan.
o HDFC Home Loan - Interest Rate @8.70% p.a.
o Onwards.
o HDFC Bank Loan Against Property.

2.To analysis the eligibility criteria for different loans:

A loan for every need -

1. Car loan –
Whether you are looking to get a car for yourself or upgrade your old one to meet
your growing family needs, having your own car to travel is important in the current
situation. Travelling in a privately owned vehicle is much safer than using public transport,
especially during a pandemic. So, if you've got your eyes on the perfect car, visit any HDFC
Bank branch, get a custom-fit car loan with minimal hassle and bring home the happiness
of having your own set of wheels!

2. Gold loan –
Caught in a terrible financialsituation such as outrageous medical expenses or a
sudden business crisis? A gold loan can help you get the financial assistance you need if
you have nowhere else to turn. All you need to do is pledge your gold jewelry as security
and apply for a gold loan with HDFC Bank. Apart from getting your loan at 90% value of
your gold, the safety of your gold is also guaranteed with India's No.1 Bank.
 8
The overall objective:
1. To identify and promote the strong leadership and growth of women as individuals in their
own right.
2. To develop the self-confidence of women in building their capacity.
3. Training the women to impart knowledge of opportunities and resources available to get
backing support.
4. To educate girl students on women specific health issues and measures to be taken.
5. Creating social awareness about the problems of women, gender equity and prevention of
sexual harassment.
 9

VI. CHAPTER 6 - About the start-up chosen for the study:

Government loans for women to start a business:

Some of the most obtained loans for ladies from the government include the following:

 Pradhan Mantri Mudra Yojana

The Pradhan Mantri Mudra Yojana Loan for Women is a government scheme designed to
allow women to embark on their entrepreneurial journey and be self-sufficient. The
government, in association with major Indian banks, provides this loan to women without
any collateral.

 At HDFC Bank, we offer Government Sponsored Program Loans with a minimum loan
amount of ₹ 1 lakh 50 thousand and maximum of ₹10 lakhs.
So the loan amount applicants can get depends on the category they belong too, from the
three defined categories:

o Shishu Loan: Under this category, applicants can get a maximum loan amount of
₹50,000 if their business is in its initial stage.

o Kishor Loan: Women who have already established their business and wish to
upgrade it can apply for a Kishor Loan ranging from ₹50,000 to ₹5 lakhs.

o Tarun Loan: The government grants this loan to businesses that are well
established and looking at expansion. Such applicants can avail of loans above ₹5
lakhs and up to ₹10 lakhs.

Annapurna Scheme:

The Annapurna Yojana by the government is especially designed for women looking to build a
business in the food catering space. Such women can avail of loans of up to ₹50,000 to begin
their entrepreneurial journey. Under this government loan for women, applicants can enjoy a
waiver on their first month’s Equated Monthly Instalment (EMI) of the loan. Plus, they may
 10
repay the loan flexibly over a period of 36 months in EMIs. Like most welfare loan schemes, the
interest rates of the Annapurna loan scheme tend to be low and the government enables the
lending banks to determine the same.

 Sthree Shakti Yojana

The Stree Shakti Yojana is yet another government loan for women designed to empower
women entrepreneurs to obtain the necessary funding for their businesses. This unique
scheme launched by the government enables women, who own a majority portion in a
business, to enjoy various concessions. Such applicants must mandatorily enrol under the
Entrepreneurship Development Programme (EDP) organised by their respective states.
Applicants under the Stree Shakti Yojana, applying for loans above ₹2 lakhs, may obtain
loans with a 0.05% on the interest rate.

 Udhyogini Scheme

Launched by the Women Development Corporation, the Udyogini scheme provides loans
at subsidised interest rates to aspiring women entrepreneurs, especially those from India's
rural and underdeveloped pockets. The primary objective of this government loan for
women is to promote women entrepreneurship in India, and to empower women from the
rural parts of the country to become financially empowered and self-reliant. To be
eligible for this loan, applicants should have an annual family income of less than ₹1.5
lakhs. They can obtain loans of up to ₹3 lakhs under this scheme.

Government loans for women play an important role in women's economic

empowerment. These loans enable women to become self-sufficient, and be financially
independent, thereby reducing their dependence on the male members of their families.
At HDFC Bank, we offer a wide range of Government-launched financial schemes and
loans for women. Eligible applicants can visit us online or reach out to our
 11
representatives to know more about the loan processes and documents required and get the
necessary financing for their businesses.

Feminism as an idea has always managed to garner popularity for itself, be it in the social or
literary circle.

Movies like Moana, Princess of Katwe, Erin Brockovich have been extremely successful in
reviving the need for women empowerment and establishing themselves as precedents promoting
girl power. The role of a woman is no longer limited to the confines of her household or as an
embodiment of traditional maternal duties only. Today’s woman has spread her wings and has
managed to break the shackles, identifying herself as a leader and as an able challenger to the
patriarchal setup, both on the professional as well as domestic front.

The year 2020, where on one hand forced people to live a life of self-imposed isolation, on the
other it was also the year that saw women spearheading positions of decision making, in the
political as well as economic arena. The year witnessed a rise of several startups and small
businesses as well as the birth and revival of several women entrepreneurs.

Amidst the overwhelming challenges of the global pandemic, the year 2020 has witnessed
women assuming important roles in leadership and decision making, with their presence
becoming synonymous with and critical to success.

Let’s look at a few of them:

1. Kamala Harris, the first US elect woman vice-president: She proved to be a
pioneer of positive and progressive change, breaking through a glass ceiling for
women by getting elected as Vice President of the United States. With her very able
leadership skills, a clear, all inclusive political agenda and her extremely magnetic
personality, Kamala Harris joined the ranks of several female vice-presidents around
the world as she shattered barriers in a very male dominated American political scene.
 12
2.New Zealand becomes the first country to declare itself Covid free: When the entire world
was grappling with the dangers of the pandemic, and the mortality rate spiraling out of control,
New Zealand declared itself free of Covid -19,and thereafter has managed to flatten the curve
and maintain a very low count of affected cases. The New Zealand government headed by
Jacinda Arden cannot be lauded enough for achieving this feat. Arden in many ways has re-
defined political leadership.
 She set new norms when she took a six weeks maternity leave and shared that her partner
will be a stay –at–home dad.
 She is the youngest female leader at the age of 38, and the youngest Prime Minister of New
Zealand in 150 years.
 She was re-elected in October2020, with a landslide victory.

Arden’s ministerial line up is ‘incredibly diverse’. There is a strong representation of women and
the Maori Community, including the new Foreign Minister Nanaia Mahuta who has a “moko
kauae” – a traditional Maori tattoo on her chin

3. Scotland becomes the first country to make period products free for all: The right
to a dignified life should be a principle made mandatory in all countries. Scotland realized this
dream when its Parliament unanimously voted in favour of the Period Products bill, making
menstrual products easily accessible to all. This marks a victory for the global movement against
period poverty impacting several women and girls, especially the ones living in poverty and in
poor countries, as the cost of the menstrual products along with the added taxes makes it
extremely difficult for them to procure something that is extremely basic and intrinsic to their
right to live safely, hygienically and with dignity.

4. Brazil and Sierra Leone joined ranks with Australia, England, Norway and New
Zealand to publicly commit to equal pay for both men and women foot ballers:
The global data highlights a gender pay gap of 16 per cent, which means that women workers,
On an average, earn only 84 percent of what men earn. For women with children, immigrants
and for women of colour the gap is wider, hence a decision like this becomes a giant leap
 13
towards ensuring the fulfilment of a long ensuing demand for equal pay.

5. Years of activism finally results in a new law against domestic violence in Kuwait.
With the world reeling under the effects of the global pandemic, another grave concern that
raised its head was the rise in domestic violence. Violence on women, within the family and the
community has always been a reason for concern- most of which goes unheard and unsaid, and
when we talk about violence it is not limited to physical abuse but also mental harassment.

The new family protection law therefore comes as a sincere effort on the governments part to
combat its ever-increasing levels of domestic abuse. Even though much work remains in
successfully implementing the law, yet it certainly counts as a positive step towards a bigger
dream.

However, despite the constant reminders of the grim reality, be it in the print media, social media
or on TV, one cannot deny that all these narratives are also interspersed with several moments of
hope, of a journey towards real and complete women empowerment.

The 10th anniversary of the women’s empowerment principles (WEP), was also celebrated in the
year 2020. It is an initiative to ensure the presence of a safe work environment with its focus on
gender equality. There was an active participation by several companies to ensure that these
principles are followed and adhered to. The reports from BSR and the UN Global Compact are
reflective of the organization’s commitment to create a meaningful change for their women
employees, measured against parameters like transparency and implementation of the said
principles.

Meenakshi Lekhi, Member of Parliament, while introducing the new women empowerment
program said, “Initiatives like Shakti are a step forward in bridging the gender gap by empowering
women in the real sense.”

Shakti is a program launched by The University of Petroleum & Energy Studies to empower
women by focusing on areas of training and development and providing simultaneous financial
 14

aid through scholarships. The theme of the program, launched in Delhi is ‘Accelerating the gender
equality journey”: Empowering women from classroom to boardroom.’

If we are to look at the statistics, we will see that even though women account for 48% of India’s
population, when it comes to the distribution of the privileges of the country’s economic growth,
they have not been equal beneficiaries. Hence initiatives like Shakti aim to provide financial aid
to girl students, through a 25% scholarship, thereby enabling them to fulfill their dreams of a good
higher education.

Other similar schemes introduced by the Indian Government include:

Mahila -E-Haat: A bilingual online marketing platform to help women entrepreneurs and NGOs
to showcase their products. It is an initiative by the Ministry of Women and Child Development,
launched in the year 2016.

Mahila Shakti Kendra: It aims at providing opportunities for skill development, employment,
digital literacy, health and nutrition to the rural women population. It works at four levels –
national, state, district and block levels.

The ‘Sahki’ scheme that came into being with the ‘Nirbhaya’ fund. It aims to provide shelter,
legal, medical and counseling services to victims of violence. It has a 24-hour helpline. The toll-
free number is 181

Support to Training and Employment Programme or STEP: It provides help in agricultural,

horticulture, handicraft, computer handlooms, tailoring etc. it also provides support in soft skills
like spoken English, computer, hospitality etc.To sum up, History stands proof of the success
with which women have ably shouldered a varied range of responsibilities and we are only
reminded of what, one of the major vanguards of feminism, Simone De Beauvoir, once said,
“One is not born, but rather becomes, a woman. The scars of eons of struggle to make our voices
heard, turns out to be the celebration of a journey.If you are one of the many women strivings
push one’s business to greater heights, you need not worry about financial support.
 15

VII. CHAPTER 7 - Data collected for the study:

Features of Business Loan for Women

 FEATURES
Standout features:

 Loan up to Rs.75 Lakh

 Dropline Overdraft Facility ranging from ₹1 lakh to ₹25 lakh

 Competitive Interest Rates

 Flexible Tenure up to 4 years

 Minimal Processing Fee

 Minimal Documentation

 No Paperwork & 10-second disbursals for pre-approved HDFC Bank customers

 Check eligibility in 1 minute with our user-friendly Loan Eligibility calculator

Empowering Women Entrepreneurs with HDFC Bank Business Loans

In today's ever-evolving business landscape, women entrepreneurs are defying expectations and
achieving remarkable success. At HDFC Bank, we recognize the immense potential of women-led
businesses and proudly offer specialized loan schemes exclusively tailored for women. Our
Business Loans serve as a powerful catalyst, providing a gateway to financial independence,
growth, and ultimate success, empowering women to soar to new heights and turn their dreams
into reality. Apply for an HDFC Bank Business Loan online today to unlock a world of
possibilities and begin your journey towards financial freedom.
 16

All you need to know

 BENEFIT
 FEATURES
 ELIGIBILITY
HDFC Life Smart Woman plan is an award-winning unique insurance cum investment plan
designed specifically for women.

Benefits:

 Comprehensive coverage options which covers you against pregnancy complications

and congenital conditions or for malignant female-specific cancers

 Uninterrupted savings with waiver & funding of premiums for next 3 years on
occurrence of specific events

Three Options:

Benefit
Event Groups
Option

Pregnancy Complications or Birth of Child Diagnosis of malignant cancer of Death of

with congenital disorder female organs spouse

Classic Premium Waiver Premium Waiver Not covered

Premium Waiver and Periodic

Premier Premium Waiver and Periodic Cash Benefit Not covered
Cash Benefit

Premium Waiver and Periodic Premium

Elite Premium Waiver and Periodic Cash Benefit
Cash Benefit Waiver
 17

 Maturity Benefit: Fund value on the date of maturity

 Death Benefit: Greater of sum assured (less withdrawals) or Fund Value or 105% of
premiums paid. Sum assured can be 7 to 40 times of annualized premium.

Home Loan Benefits for Women in India

Buying a home is one of the biggest aspirations for Indians. The reasons are many. For some, it is
having a home to call their own, or the sense of security it provides. For others, it is a ticket to an
early retirement. It could also be a sense of accomplishment and a boost to one’s self-esteem. Or
it could be simply an investment for the future.

Whatever the reason, buying a home is right on top of the priority list – somewhere very close to
getting married, and we know how important that is for Indians!

However, arranging funds to buy a house is not always easy. This is where home loans come in.
Banks today provide lucrative home loans to make one’s cherished dream of owning a house
come true. Women are eligible for some additional benefits with a view to empower them and
encourage them to be financially independent.

Let us take a quick look at the home loan benefits Indian women can reap:

Lower interest rate: The right home loan can spell the difference between a cost-effective
house and a financial drain. So finding a bank or NBFC that caters to your needs is imperative.
That aside, Indian women get a concession on the rate of interest when taking a home loan. This
can be anywhere between 0.05% and 0.1%. This may not seem like much, but in the larger
picture, it can make a big difference.

Home loans can stretch anywhere from 15 to 25 years. If you consider the cost of a home that
runs into lakhs and crores of rupees, this lower interest translates to lower monthly EMI. It adds
up to a considerable amount, which makes the home easier on the pockets.
 18

Reduced stamp duty: Stamp duty is another factor that adds to the cost of the property. To
encourage women to own property, different states in India offer a reduction of 1% to 2% in the
stamp duty. This again makes for considerable savings. For example, for a house worth Rs 1
crore, women can save up to Rs 1 lakh to 2 lakh.

Tax benefits: Women also enjoy income tax benefits on their home loan repayments. The
maximum tax deduction allowed is Rs 1.5 lakh on principal amount and Rs 2 lakh on interest
repayment. If both husband and wife are co-owners of the property and have different sources of
income, both can claim tax deductions.

Lucrative add-on offers: Some banks also have enticing offers for women borrowers. This can
be a gold coin, jewellery vouchers, a prestigious credit card, or a free holiday. Though small
gifts, these are often enough to sweeten the already sweet deal.

Choose your banking partner wisely, and buying a home can be a pleasant experience. HDFC
Bank believes in empowering women and provides Home Loans cater specifically to their needs.
Its interest rate for women seeking loans above Rs 30 lakh start at 8.60%, as against 8.65% for
other individuals. It also offers customised repayment options, along with expert legal and
technical counselling, to help you make the right home-buying decision.

Establish your financial independence. Take the first step towards owning your home today!

* Terms & conditions apply. Home Loan disbursal at sole discretion of HDFC Bank Ltd. The
information provided in this article is generic in nature and for informational purposes only. It is
not a substitute for specific advice in your own circumstances.
 C2
REPORT CONTENT
 19
I. CHAPTER 8 - Data Analysis:
 How many loans are there in PM Mudra Yojana?

The government has extended 43 crore loans aggregating to ₹22.5 lakh crore under the PM
Mudra Yojana, Finance Minsiter Nirmala Sitharaman said.

 HDFC Bank Mudra Loan Interest Rates:

Type of Mudra loan Interest rate
Shishu Mudra Yojana 1% - 12%

Kishore Mudra Yojana 8.60% - 11.15%

Tarun Mudra Yojana 11.15%-20%

 Is Mudra loan scheme successful?

In most categories, disbursements have surpassed pre-covid levels. Data as on 24
March 2023 puts the scheme's cumulative disburse amount at ₹22.65 trillion. The share
of Shishu loans is the highest, at 40%, suggesting that the PMMY has largely supported
first-time entrepreneurs.
 What is the minimum CIBIL score for Mudra loan?
Generally, the MUDRA loan eligibility CIBIL score that a business should possess
ranges from 650 – 700. However, banks don't consider CIBIL score as a strict
determinant of eligibility.
 Can a housewife apply for a Mudra loan?
Yes, individual women borrowers can get loans under the Mudra scheme, provided
they meet the eligibility criteria.
 What is the limit of Mudra loan to 20 lakhs?
"The BJP has decided to raise loan limit under Mudra scheme to Rs 20 lakh from Rs
10 lakh," Prime Minister Narendra Modi announced. The scheme was launched eight
 20
years ago in April 2015 by PM Modi in order to facilitate collateral-free credit of up
to Rs 10 lakh to non-corporate, non-farm small and micro-entrepreneurs.

Home Loan Benefits for Women in India

Financial Literacy Program Impacts (Findings) This report is broken down into two distinct
analyses, which help in providing a broader picture of the program under study. The first part of
the analysis is the core - measuring the impact of the SLI program using the quasi-experimental
retrospective method called Propensity Score Matching (estimates are of kernel matching) and
quantile regression estimates, which aids in estimating the distributional effect of the program on
income, savings and outstanding borrowings. The second part of the analysis is of supplementary
nature, as it adds value to the findings in the first part but causality cannot be attributed to these
results. Here, descriptive analysis was done to assess the performances of the program in the three
states on various outcome variables using averages and percentages.

Financial literacy:

is a composite concept, which is basically an aggregation of financial behaviour, financial attitude

and financial knowledge (basic financial knowledge and analytical literacy). Financial literacy is
quantified as Financial Literacy Index, which is the sum of Financial Behaviour Index, Financial
Attitude Index, Basic Financial Knowledge Index and Analytical Literacy Index. The findings
show a significant positive impact of financial literacy on the SLI households, as SLI women
scored 13.91 index points more than their counterparts. This markedly higher financial literacy is
further implicated in the subsequent sections, where we observe a higher preference of SLI
households towards formal sources.

When it comes to financial behaviour, the impact estimates showed that SLI women are more
likely to exhibit positive financial behaviour than non-SLI women, as evident from the fact that
SLI women scored 22.24 index points higher than their counterparts.

The individual analysis of behaviours like prioritising savings and investment and maintaining
budget showed favourable financial behaviour being inculcated in the SLI women when compared
 21

to their counterparts. In Financial attitude, we basically analysed a person’s approach to money

management and planning for the future. Overall, we could observe a positive impact of the
program on financial attitudes of SLI women, as they scored 14.45 index points significantly more
than non-SLI counterparts. Furthermore, SLI women exhibited a consistent financially literate

attitude when it came to specific attitude statements like saving is more useful than spending, long-
term planning, not taking small things on rent rather settling the amount at the same time and so
on.

Proceeding on to the third component, Financial Knowledge, which comprises two sub-
knowledge about financial concepts and analytical numeracy skills. It includes questions
measuring understanding of financial concepts such as division of money, inflation, simple interest
and compound interest, and interest rate on loan and risk. In the case of Basic Financial
Knowledge, viii 11 An Impact Evaluation Study of Sustainable Livelihood Initiative there is no
significant difference found between the SLI women and the non-SLI women. With regard to
Analytical Literacy Index, SLI women have scored 12.08 index points more than the non-SLI
households. Moreover, the results of the specific analysis of each of the 6 basic analytical literacy
questions are also on similar lines.

In order to understand the extent of financial inclusion, we explored the awareness and usage of
the financial products or services. These were quantified in the form of a Financial Awareness
Index and Financial Product Usage Index. In the Financial Awareness Index, SLI women scored
6.35 index points higher than their counterparts. Independent analysis of products or services
posited a significant but moderately positive proportion of SLI women aware of fixed deposits,
loans from MFIs or banks and debit cards.

In the case of using these financial products, 31.56% more SLI women reported using at least three
financial products or services out of eight. Significantly higher proportion of SLI women have
used fixed deposits, debit cards and internet banking; taken loans from banks; and deposited
through post office and insurance. Overall, in the Financial Product Usage Index, SLI women
scored 13.01% more than their counterparts. The overall results indicate that, despite the smaller
effect size in the Financial Awareness Index, proportion of SLI women who have used financial
 22

products or services are considerably higher than their counterparts. Hence, we could decipher that
financial literacy programs under SLI have helped women understand the importance of financial
products and services, leading to greater financial inclusion.

Savings Habit Loan behaviour:

Results on savings show the inculcation of two positive behavioural changes among SLI
households firstly an inducement of savings as a habit and secondly, a positive inclination towards
formal saving sources. To qualify it further, results showcase SLI households with 118.89% more
per capita formal savings; 66.79% more per capita savings; 33.51% more SLI households with
savings as a habit; and 34.8% higher share of formal savings in their total savings, when compared
to non-SLI households. Though such a high share of formal savings is magnified by SHG savings,
other formal sources are also contributing to it. This fact is validated by the inference that despite
the removal of SHG savings, the amount of formal savings and per capita formal savings are still
significantly higher for SLI households.

A shift towards credit system as a whole, especially formal financial sources, as envisaged by the
program itself is evident in the results, where we could find a 43.13% higher proportion of SLI
households availing one extra loan on an average; 55.23% more SLI households taking on an
average one formal loan more than the non-SLI households. SLI households have a 24.4% higher
share of formal loans than their counterparts. While SLI households took more formal loans, their
average formal loan amount was 45.01% lesser than that of their counterparts, but the difference
was weakly significant. However, there were no significant differences between the SLI and non-
SLI households in terms of the cost of debt (interest rate) and duration of loans.

Women Empowerment Distributional Effects of Program (Quantile Regression)

In this study, women empowerment was gauged using indicators related to intra-household
decision making. A significant positive effect could be observed in the SLI women being involved
as a primary decision maker related to food, healthcare, clothing, education of child, availing and
giving loan and so on in the household. The result could be substantiated from the fact that SLI
women scored 10.25 index points more than their counterparts in the Decision-Making Index.
 23
When the decision making is further divided into general household related and financial product
related decision making, the results still remain positively significant.

Moreover, SLI has instilled confidence among women in communicating with bank officials in
matters related to loans or savings, as 4.61% more SLI women reported being confident in such
matters than their counterparts.

Visiting HDFC Bank

 24

II. CHAPTER 9 - Distribution of the Sources of Loan:

The primary sources of credit for the SLI Households consist mainly of formal institutions. The
highest percentage of loans (39%) have been taken from HDFC Bank Loan, followed by SHG/JLG
Internal Loans (20%). Other major formal sources being other banks (16%) and microfinance
institutions (MFIs) (16%). These add up to close to nine-tenth of the total number of loans taken
by SLI Households (Figure 4.3.1.4).

Similarly, for the non-SLI Households the maximum number of loans have been taken from banks
(37%). However, they are followed by a majority of informal sources which include Relatives and
friends (12%), private money-lenders (11%) and shopkeepers (10%). These three informal sources
account for about one-third of the total number of loans taken by non-SLI households.

Distributional Effects of Program (Quantile Regression):

The distributional effect of SLI on income, savings and total outstanding borrowing is positive and
more pronounced for SLI households in the bottom percentile (25th) than their counterparts.
 25
However, in top percentiles, savings remain positively affected, but there is an insignificant effect
on income.

State Wise Descriptive Statistics:

There is a considerable impact of SLI on financial literacy, irrespective of state, as SLI women
have higher financial literacy than non-SLI women. Also, among the states, the differences in
financial literacy of SLI households are minimal. Further in all three states, a positive inclination
towards formal saving and credit sources has also been more prevalent among SLI households
than non-SLI households, SLI women in Tamil Nadu excelled their counterparts in other states in
the inducement of positive loan behaviour and the majority of loans taken by SLI households were
female-owned. In terms of income, SLI households in Madhya Pradesh earn more than their peers
in the other two states. On the other hand, with regard to entrepreneurial behaviour, SLI households
in Maharashtra are more likely to have a higher number of enterprises and a majority of those
businesses are owned by women. Also, SLI women in Tamil Nadu are more likely to invest in
consumptive assets. However, Madhya Pradesh ranks the lowest among the three states in terms
of female empowerment, enterprise ownership, and proportion of female-owned loans among the
SLI households.
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III. CHAPTER 10 - Conclusion:

HDFC, India's largest private bank, stands out as a company with a rating of “C: Contributes to
Solutions” in our universe of banking institutions, particularly through its HRDP program with its
focus on maximizing positive outcomes for the most underserved populations in India.

The report presents the findings of an impact evaluation study of the Sustainable Livelihood
Initiative (SLI), a CSR initiative of HDFC bank. The study was conducted in the state of Madhya
Pradesh, Maharashtra and Tamil Nadu. The study measured the impact of the program on women’s
financial literacy, intra-household decision making, and her household’s economic welfare
(savings habit, loan taking behaviour, enterprise ownership, assets portfolio, income etc.).

The analysis is based on an extensive household survey conducted in the three states and is divided
into two parts. First, an empirical analysis of the causal effects of the program on the women and
her household and second, state level descriptive analysis of key indicators among SLI households
and between SLI and non-SLI households. Both the analysis should be seen as complementary to
each other. The descriptive analysis focuses on the performance of the states which is suggestive
and cannot be interpreted as causal effects of the program.

Overall, the study findings show strong effects of the program on women’s financial literacy and
her involvement as a primary decision maker in intra-household decision making. SLI women are
more financially literate than non-SLI women, which is mainly due to their better financial
behaviour, attitude and analytical skills. The positive impact on financial literacy corroborates the
effect of financial literacy training sessions provided by the SLI team to the rural women. The
differences in terms of awareness regarding financial products or services is relatively lesser
between SLI and non-SLI women but SLI women who have used/using these products or services
are much higher than the non-SLI women. This shows the effect of financial literacy on financial
inclusion of women.