Loans up to ₹5 crore for women entrepreneurs: Tamil Nadu issues guidelines
05-10-2026 · English
Topics: Tamil Nadu · 5 October 2026 Current Affairs (UPSC / TNPSC / SSC / RRB)
News
On 4 October 2026 the Tamil Nadu Government released guidelines for the Vetri Magalir Thozhil Munaivor Membattu Thittam (Vetri Women Entrepreneurs Development Scheme), which gives women loans of ₹10 lakh to ₹5 crore to start or expand a business. It is run through the Tamil Nadu Industrial Investment Corporation (TIIC). Industries Minister S. Keerthana announced the scheme on 27 September 2026.
Key facts
| Loan | Minimum ₹10 lakh, maximum ₹5 crore (new unit or expansion) |
| Interest | 9.95% a year, on reducing balance |
| Repayment | Up to 9 years, including a 2-year moratorium |
| Ownership | Women must hold at least 51% of the business |
| Security | Property worth 40% of the loan (units under 3 years old); 20% for older units |
| Selection | 10 women per Assembly constituency × 234 = 2,340 in the first round, recommended by MLAs and then checked by TIIC on merit |
Background
- TIIC began in 1949 as the Madras Industrial Investment Corporation, one of India's oldest State-level financial corporations; HQ Chennai.
- Stand-Up India (2016): bank loans of ₹10 lakh to ₹1 crore for at least one SC/ST and one woman borrower per bank branch.
- PM Mudra Yojana (2015): loans for micro units (Shishu, Kishore, Tarun, Tarun Plus).
- Article 15(3) allows the State to make special provisions for women.
Tamil Nadu link: The Tamil Nadu Corporation for Development of Women (1983) runs the Mahalir Thittam self-help groups, which began in Dharmapuri (1989) with IFAD support.
Source: Daily Thanthi (4 Oct 2026); IANS (27 Sep 2026)
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