What is Mahila Udyam Nidhi Yojana?
Mahila Udyam Nidhi (MUN) Scheme is a scheme offered under Small industrial Development Bank of India (SIDBI) to encourage and empower women entrepreneurs and promote women Entrepreneurship by providing financial assistance at concessional interest rates. The funding provided by Mahila Udyam Nidhi Scheme can be used by MSMEs to undertake service, manufacturing and production related activities.
Under Mahila Udyam Nidhi Scheme, women entrepreneurs can avail loan sup to Rs. 10 lakh to start their own business or small scale enterprise. The interest rates offered under this scheme may vary from bank to bank. The funding support can also be used to upgrade or expand existing projects. The maximum loan repayment period offered under this scheme is up to 10 years with the moratorium pages up to 5 years.
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- Women entrepreneurs who have initiated existing and new MSMEs, Tiny Units or SSIs
- Financial holding of women entrepreneurs should not be less than 51%, engaged in manufacturing and production purposes
- Existing or new MSMEs engaged only in services, trading and manufacturing sectors
- MSMEs or tiny enterprises with minimum investment of at least Rs. 5 lakh
- MSMEs engaged in various activities, such as business expansion, improvement, diversification, and technology upgradation
Also Read: What is an MSME? How to get an MSME loan
Features of Project Profile
- Project cost must not exceed Rs. 10 lakh
- Loan limit of up to 25% of project cost, subject to maximum of Rs. 2.5 lakh per project is offered to deserving women entrepreneurs
- Repayment tenure of loan is up to 10 years, including moratorium period of 5 years
- Interest rate fixed by SIDBI and offered by banks that may vary from time to time and shall be communicated by SIDBI to women entrepreneurs
- Service charge of 1% per annum is charges by the respective bank, as per the sanctioned loan
- Service charge waiver depends on the lending office
Benefits of Mahila Udyog Nidhi Yojana
- Promotes women entrepreneurs
- Increases employment opportunities in the tiny and small scale sectors
- Helps to meet the gap in equity
- Rehabilitates weak SSI units
- Expansion, modernization and technology upgradation of service industries
Activities included in Mahila Udyam Nidhi Scheme are as follows:
- Auto-repairing and servicing centre
- Beauty parlour
- Cable TV Network
- Canteen and Restaurant
- Computerized Desk top publishing
- Cyber Café
- Day care centre
- ISD / STD Booth
- Laundry & Dry Cleaning
- Mobile Repairing
- Photocopying (Xerox) Centre
- Purchase of auto rickshaws, two-wheelers, cars
- TV Repairing
- Road transport operator
- Servicing of Agricultural and Farm equipment
- Training Institute
- Typing Centre
- Washing machine and other electronic and electrical gadgets, etc.
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Mahila Udyam Nidhi Scheme was first launched by Punjab National Bank to provide funding support to women entrepreneurs who are engaged in SSIs. However, there are several banks that offer Mahila Udyam Nidhi Scheme at affordable and attractive interest rates. Moreover, there is no collateral or security to be submitted by the women entrepreneurs to start their enterprise. This scheme helps women entrepreneurs to start their own business and promotes them to grow and expand in their area of interest and skills.
Like Mahila Udyam Nidhi Scheme, there are various other schemes that promote and help in the development and growth of women entrepreneurship that include Mudra loan scheme, TREAD (Trade Related Entrepreneurship Assistance and Development) scheme, Cent Kalyani Scheme, Udyogini Scheme, Dena Shakti Scheme, Annapurna Scheme, Stree Shakti Package for Women Entrepreneurs, etc.