Mahila Udyam Nidhi Scheme: Eligibility Criteria, Interest Rate & More
Smart Money April 11, 2024
Abhibyakti Singh
Executive Assistant, LXME
The Mahila Udyam Nidhi Scheme aims to support women’s entrepreneurial ventures. It is an initiative by the Small Industrial Development Bank of India and offers financial assistance to women entrepreneurs at special interest rates.
Women have proven that they can do anything they set their minds to. Against all odds, women are setting up their own businesses and taking it to new heights. To help them in this process, the Small Industrial Development Bank of India offers a special scheme for women entrepreneurs called the Mahila Udyam Nidhi Scheme. Let’s understand this scheme in detail.
What is the Mahila Udyam Nidhi Scheme?
The Mahila Udyam Nidhi Scheme is an initiative of the Small Industrial Development Bank of India aimed at empowering women entrepreneurs by providing them with loans at special interest rates. The purpose of the scheme is to enable women to engage in a variety of business activities and promote entrepreneurship among them.
What are the features of Mahila Udyam Scheme?
- Under this scheme, women and MSMEs (Micro, Small, and Medium Enterprises) can avail of a loan of up to Rs. 10 Lakhs.
- You can avail up to 25% of your total project cost as a loan under this scheme. However, there is a limit of Rs. 2.5 lakhs per project.
- The repayment tenure is a maximum of 10 years. However, you can opt to extend your tenure by another 5 years.
- Women entrepreneurs can receive a loan under this scheme at lower, special rates.
- There is no requirement for collateral at the time of availing loan.
- A loan under this scheme is sanctioned by SIDBI and disbursed through banks and Non-Banking Financial Corporations.
What is the eligibility criteria for Mahila Udyam Nidhi Scheme?
- Mahila Udyam Nidhi Scheme Eligibility is only for women entrepreneurs who are planning to launch or are running their own small-scale enterprise.
- To avail of the loan, women should hold at least 51% of the company’s share.
- Loan is offered only to businesses operating in production, manufacturing, and service-oriented industries. Example – Auto Repairing centre, salons, restaurant etc.
- The business should have a minimum investment of Rs. 5 Lakhs.
- The loan availed can only be used for specific purposes such as for expansion, upgradation etc.
What are the benefits of Mahila Udyam Scheme?
- It promotes a spirit of entrepreneurship among women.
- It allows small and medium-scale enterprises to modernize and expand.
- It increases employment opportunities in the MSME sector.
How to apply for Mahila Udyam Nidhi Scheme?
Step 1 : Visit Punjab National Bank’s website and search for Mahila Udyam Nidhi Scheme.
Step 2 : Scroll until you find the application for MSME loans and click on the option for loans up to Rs. 1 Crore.
Step 3 : Download, print, and fill out the application with the relevant details.
Step 4 : Provide details of collateral security, if any.
Step 5 : Provide details of your company’s past performance as well as future forecast.
Step 6 : Fill in ‘Yes’ or ‘No’ under Statutory Obligations.
Step 7 : Provide ID proof and proof of address.
Step 8 : Attach photograph and sign the form.
Step 9 : Once completed, submit the form at the closest PNB branch for verification and approval.
What are the documents required to apply for a loan under Mahila Udyam Scheme?
- Aadhar Card
- Pan Card
- Residential Proof
- Bank Statements (last 9 months)
- Bank Account Information
- Lease agreement of business premises (if applicable)
- Business Registration Documents
- Details of Business
In conclusion, Mahila Udyam Scheme offers women support in their entrepreneurial journey by providing financial assistance without collateral and at special rates. It is an initiative that encourages more women to undertake business opportunities and leads them towards economic empowerment.
With financial assistance, women get encouragement to scale their businesses leading to more earnings. They should save and invest a portion of this income towards their life goals.
Join LXME’s vibrant community to learn more about such interesting schemes! Ask queries and get all your money-matter doubts cleared on the App!
FAQ’S
What is the Mahila Nidhi loan scheme?
The Mahila Udyam Nidhi Scheme is an initiative of the Small Industrial Development Bank of India aimed at empowering women entrepreneurs by providing them with loans at special interest rates.
What is Mahila Udyam Nidhi Scheme Interest Rate?
The interest rate on Mahila Udyam Nidhi Scheme depends on the project cost and will vary from bank to bank.
Who is eligible for Mahila Nidhi loan?
Only women entrepreneurs who are planning to launch or are running their own small-scale enterprise can avail this loan.
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