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Mahila Udyam Nidhi Scheme 2025: Women Entrepreneurs Get ₹10 Lakh Support

Pragya Pathak

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Updated: 14-08-2025 at 12:30 PM

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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.

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.

Collateral-free loan available for up to INR 10 Lakhs.
No collateral is needed.
Tenure for repayment is a maximum of INR 10 years.
Flexible moratorium of up to 5 years.
Manufacturing, service industry and business upgrades encompassed.
25% of the project cost is supported (cap of 2.5 lakhs).
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.

Motivates women to achieve independence.
Helps reduce the difference between male and female business owners.
No chances of asset loss because no collateral is required.
Women, both in rural and urban regions, are aided in gaining financial access.
Aids in the development of the MSME and SSI categories.
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.

Maximum project cost allowed: INR 10 lakhs
Per Project Max loan: INR 2.5 lakhs
The repayment term is within 10 years with 5 5-year moratorium period included.
Charge 1%(may be waived).
Have a different set of interest levels.

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.

Automobile repair and servicing.
Day Schools and Creches.
Laundry and Dry Cleaning services.
Telephonic STD/ISD booths.
Mobile & TV Repair.
Canteen service/restaurants.
Farm, Agricultural & other Machinery Servicing.
Dress Making and Beauty Salons.
Cyber cafés and Typing Shoppes.
Washing machine service.
Business-related automobile purchase.
Cable TV advertisement.
Public Transport Operations.
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.

Women entrepreneurs hold a minimum of 51% share of the business.
Business must be an MSME, SSI, or Tiny Unit.
Business sectors: Trading, Manufacturing, and Services.
Businesses must have an investment of greater than or equal to INR 5 lakhs.
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.

Completed application form
Passport-size photograph
Aadhaar card
Business registration certificate
Proof of business ownership
Financial statements
Project report with cost and returns estimates
Bank statements

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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