The Mahila Udyam Nidhi Scheme is an initiative by the Indian government aimed at improving the socio-economic status of women in the country by providing them with easy and low-cost credit. The government scheme is designed to facilitate women-led startups, small industries, and micro enterprises all over the country by having simple loan policies, no collateral, and being supportive towards different business sectors.
Read the article to learn more about the govt scheme for women, ranging from its meaning and features to eligibility and application process.
Read More: Unlock Financial Security with the Mahila Samman Savings Certificate Scheme
Overview
The table below mentions all the important details about the scheme that women should know.
| Feature | Details |
|---|
| Launched By | SIDBI (First launched by Punjab National Bank) |
| Target Group | Women Entrepreneurs |
| Loan Amount | Up to INR 10 Lakhs |
| Collateral Requirement | None (Collateral-Free Loans) |
| Repayment Tenure | Up to 10 years |
| Moratorium Period | Up to 5 years |
| Interest Rate | Concessional (varies by lender & credit profile) |
| Maximum Loan % of Project Cost | 25% (Max INR 2.5 lakhs) |
| Service Charge | 1% per annum |
| Disbursal Agency | Through PNB, MFIs, NBFCs |
What Is Mahila Udyam Nidhi Yojana?
The Mahila Udyam Nidhi Yojana is a scheme launched by SIDBI that intends to offer financial support to help women entrepreneurs access credit for starting up or expanding their businesses. With such low interest, no collateral loans, and a long repayment period, it greatly facilitates women's economic development.
Features
To provide women an ease in starting or upgrading a business, the Mahila Udyam Nidhi Scheme has several features that mitigate the financial burden.
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Collateral-free loan available for up to INR 10 Lakhs.
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No collateral is needed.
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Tenure for repayment is a maximum of INR 10 years.
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Flexible moratorium of up to 5 years.
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Manufacturing, service industry and business upgrades encompassed.
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25% of the project cost is supported (cap of 2.5 lakhs).
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1 per cent annual service charge (may be waived).
What Are The Benefits Of Mahila Udyam Nidhi Scheme?
Other than the monetary assistance, the Mahila Udyam Nidhi Scheme has social rewards such as women's empowerment and holistic growth. It encourages women to venture into the entrepreneurial world without apprehensions related to finances.
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Motivates women to achieve independence.
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Helps reduce the difference between male and female business owners.
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No chances of asset loss because no collateral is required.
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Women, both in rural and urban regions, are aided in gaining financial access.
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Aids in the development of the MSME and SSI categories.
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Assists in creating job prospects.
Project Profile Features
For the Mahila Udyam Nidhi Scheme, both form and financial details of the project are critical. It has been set up to provide subsidised capital and easy terms to women business owners.
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Maximum project cost allowed: INR 10 lakhs
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Per Project Max loan: INR 2.5 lakhs
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The repayment term is within 10 years with 5 5-year moratorium period included.
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Charge 1%(may be waived).
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Have a different set of interest levels.
Read More: Mukhyamantri Rajya Nirashrit Mahila Samman Pension Yojana
Approved Business Activities
The Mahila Udyam Nidhi Scheme has benchmarked a host of business activities to nurture women's entrepreneurship in diverse sectors. This includes service, maintenance, and even micro-scale entrepreneurial activities.
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Automobile repair and servicing.
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Day Schools and Creches.
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Laundry and Dry Cleaning services.
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Telephonic STD/ISD booths.
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Mobile & TV Repair.
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Canteen service/restaurants.
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Farm, Agricultural & other Machinery Servicing.
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Dress Making and Beauty Salons.
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Cyber cafés and Typing Shoppes.
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Washing machine service.
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Business-related automobile purchase.
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Cable TV advertisement.
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Public Transport Operations.
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Desktop publishing schools, etc.
Who Are Eligible For The Udyam Nidhi Yojana?
The Mahila Udyam Nidhi Scheme aims to assist women entrepreneurs in accessing financial support through microloans. To avail of these services, certain eligibility criteria must be met.
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Women entrepreneurs hold a minimum of 51% share of the business.
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Business must be an MSME, SSI, or Tiny Unit.
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Business sectors: Trading, Manufacturing, and Services.
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Businesses must have an investment of greater than or equal to INR 5 lakhs.
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Funds are allocated for technology improvement, business expansion, or diversification.
What Is The Application Process For Mahila Udyam Nidhi Yojana?
Applying for the Mahila Udyam Nidhi Scheme is simple if you follow the right steps. This scheme aims to support women entrepreneurs with easy access to financial help.
Step 1: Visit the official PNB website
Step 2: Search for Mahila Udyam Nidhi Scheme
Step 3: Download and fill out the application form
Step 4: Provide contact, business, collateral, and financial details
Step 5: Attach photo and signature
Step 6: Submit the form to the nearest PNB branch or participating institution
What Are The Documents Required For The Mahila Udyam Nidhi Scheme?
Having the right documents ready is essential for applying for any business-related scheme or loan. These documents help verify your identity, business legitimacy, and financial status.
Read More: Mahila Samman Savings Certificate: Benefits, Eligibility And More
Conclusion
The Mahila Udyam Nidhi Scheme is significant for fostering women's entrepreneurship throughout the country. This scheme is beneficial to women entrepreneurs as it provides them with loans without collateral, along with business development assistance. This is a step forward towards women-friendly economic development.
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