What is the primary objective of the TREAD scheme?

The primary objective is to empower women entrepreneurs by providing financial assistance and entrepreneurial training.

How much financial aid does the government provide under the TREAD scheme?

The government provides up to 30% of the project cost, with a minimum of Rs. 5 lakhs per project.

Who can apply for the TREAD scheme?

Legally registered entities with a minimum of 3 years of registration and experience in thrift and saving programs with SHGs.

What kind of activities does the TREAD scheme support?

The scheme supports non-farming activities run by self-employed women entrepreneurs.

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Want To Know How The TREAD Scheme Gives Financial Assistance To Entrepreneurs?

Q: What does TREAD stand for?

TREAD stands for Trade-Related Entrepreneurship Development Assistance.

Neha Gupta

Author

Updated: 28-01-2025 at 6:19 AM

Want To Know How The TREAD Scheme Gives Financial Assistance To Entrepreneurs?

The TREAD scheme was introduced by the Indian government to empower women entrepreneurs and help start their business journeys. With the aid of this govt scheme, women can take an extra step beyond their capabilities, especially those who lack proper credit facilities.

Read this article to find out more about the TREAD scheme, its objectives, benefits, eligibility, application process.

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What Is The TREAD Scheme?

The government introduced the TREAD scheme intending to promote women entrepreneurs. TREAD stands for Trade-Related Entrepreneurship Development Assistance.

The government plans to help women kick-start their businesses by giving them financial assistance and sharpening their entrepreneurial and technical skills. For each project a minimum of Rs. 5 lakhs is given by the government.

The scheme provides assistance for self-employed ventures run by women for pursuing any kind of non-farming activity. The government provides up to 30% of the financial aid and the rest is provided by financial institutions.

NGOs also help in providing financial assistance and also make sure poor women receive sufficient training and counselling to successfully run their ventures.

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Why Was The TREAD Scheme Introduced?

The main reason why women do not start their businesses is because of a lack of funds. Women are often denied loans to raise funds and start their businesses irrespective of their literacy level and capabilities. The government launched the TREAD scheme to help women get the financial assistance they need.

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What Are The Objectives Of The TREAD Scheme

The main aim of the TREAD scheme is to help women entrepreneurs with the establishment of their businesses. Let us understand its other objectives.

Help women get funds to start their businesses.
Empower women entrepreneurs.
Fight the stigma that women cannot run a business.
Enhance their technical and entrepreneurial skills.
Promote employment.
Provide training and counselling to women.
Provide information about the developing markets.

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Eligibility Criteria To Avail The TREAD Scheme

To avail of the TREAD scheme, the applicants must meet these specific criteria:

Must have a legal entity with a minimum of 3 years of registration.
Must have experience in thrift and saving programs with Self Help Groups (SHGs).
Should have qualified staff.
Must have basic infrastructure and services to conduct training.
Should not be blacklisted from any statutory body.
Should be engaged in entrepreneurial and income-generation activities.
Experience in preparing project proposals for SHGs and women entrepreneurs.

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Application Process For TREAD

Visit the nearest Micro, Small and Medium Enterprise (MSME) Development Institute.
Submit the application form.
Submit relevant documents.
Wait for the request to be processed.

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Documents Required To Submit For TREAD

Make sure to carry the mentioned documents before applying for the TREAD scheme.

Identity proof- Aadhaar card, voter ID, PAN card or driving licence.
Three years of audited accounts.
Address proof- Aadhaar card, passport or utility bill.
Property Tax Bill.

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Conclusion

The TREAD scheme is a crucial step taken by the government to promote the empowerment of women entrepreneurs. With the help of the counselling and training provided in the scheme, not only help with the economic growth of the sector but also help women gain confidence and motivation to run their businesses.

To read about the TREAD guidelines, visit their official website.

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