SIDBI’s PRAYAAS scheme is a dedicated initiative aimed at supporting informal micro-entrepreneurs, particularly women and those from marginalized communities, in transitioning from basic sustenance activities to more viable and sustainable enterprises. The scheme offers affordable small-ticket loans ranging from ₹50,000 to ₹5 lakh through a network of partner intermediaries, including microfinance institutions (MFIs), NBFCs, SHG promoters, and fintech firms. PRAYAAS follows a digital-first approach, enabling e-KYC, digital documentation, e-signing, and e-stamping via mobile apps or web portals, which accelerates loan processing and disbursal. The scheme emphasizes doorstep delivery of financial services, reducing access barriers for underserved populations. As of March 2022, loans worth ₹342 crore were disbursed to over 21,500 beneficiaries, with around 88% of them based in rural areas. By December 2023, the scheme had expanded to cover over 1.3 lakh beneficiaries across more than 400 districts in 25 States and Union Territories. Notably, over 85% of the loans have been availed by women entrepreneurs, and more than 70% have gone to individuals from socially backward groups. With an interest rate capped at around 13%, PRAYAAS has emerged as a cost-effective and inclusive tool for empowering grassroots entrepreneurship in India.

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