Swayamsiddha Foundation

Udyogini means Women Entrepreneur and Government has initiated this scheme for the welfare and development of Indian Women Entrepreneurs. Udyogini Yojana has been implemented by Women Development Corporation under the Government of India.

This scheme promotes and motivates women’s entrepreneurship among the poor by providing financial support to women for doing business. Udyogini Scheme helps in the enhancement of income of an individual and families and contribute to the overall growth of the country.

Udyogini Scheme Details – Feb 2022
Interest Rate	Competitive, subsidized or free for special cases
Loan Amount	Max. up to Rs. 3 lakh
Annual Family Income	Rs. 1.5 lakh or less
No income limit	For Widowed or disabled women
Collateral	Not required
Processing Fee	Nil

Note: The mentioned interest rates are subject to change and depend on the sole discretion of the Government of India and respective banks or NBFCs. 

Interest-free loans are offered to women of all sections of the society without any discrimination or preference. Udyogini Scheme is primarily offered by Karnataka State Women’s Development Corporation (KSWDC), Punjab and Sind bank, Saraswat Bank, as well as several other private and public sector banks and leading NBFCs. This scheme focuses on organizing and undertakes skill development training programs for women, besides offering financial assistance. Below mentioned are key details of this scheme:

Eligibility Criteria for Loans under Udyogini Scheme

• Business Loan available for only Women Entrepreneurs
• Should not have defaulted on any past loan with any financial institution
• Applicant with good credit score and repayment capability

Documents required

• Duly filled Application Form with passport-sized photographs
• Applicant’s Aadhaar Card, Birth Certificate
• Applicant’s Below Poverty Line (BPL) card & Ration Card
• Address and Income Proofs
• Caste Certificate, if applicable
• Copy of Bank passbook (account, bank and branch names, holder name, IFSC and MICR)
• Any other document required by the bank/NBFC

Who can Apply for a Loan under Udyogini Yojana Scheme?

Udyogini Yojana offered by several banks can be availed by aspiring women entrepreneurs across the nation. This scheme is exclusively initiated to promote women’s entrepreneurship and financial empowerment. Under this scheme, subsidized loans are offered for women entrepreneurs from rural areas.

How to Apply for a Business Loan under the Udyogini Scheme?

To apply for a business loan under this scheme or yojana, applicants can visit the nearest bank with all the required documents and fill an application form to proceed with bank formalities. Another option is that applicants can apply for loans online by visiting the official website of banks offering loans under the Udyogini scheme.

Below mentioned are the features and eligibility criteria for loans under this scheme from leading banks and NBFCs:

Udyogini Scheme from Bajaj Finserv

Interest Rate	Interest-free loan to women from all sections of the society
Loan Amount	Max. up to Rs. 3 lakh
Loans available for	88 SSIs – Small Scale Industries
Subsidy	Up to 30%
Family Income Criteria	Should be less than Rs. 1.5 lakh
Training for Skill Development	Available

Udyogini Scheme from Saraswat Bank

	Micro Enterprises	Small Scale Enterprises	Medium Enterprises
Interest Rate	11.15% onwards	11.15% onwards	11.15% onwards
Loan Amount	Up to Rs. 2 lakh	From Rs. 2 lakh up to Rs. 50 lakh	From Rs. 50 lakh up to Rs. 100 lakh
Processing Fee	Rs. 5,000	· Upto Rs. 10 lakh – Rs. 5000· Above Rs. 10 lakh and Upto Rs. 25 lakh – Rs. 7000· Above Rs. 25 lakh – Rs. 10000	Rs. 10,000
Repayment Tenure	6 Years	6 Years	7 Years
Margin	Nil	20%-25% lower than the Bank’s norm	20%-25% lower than the Bank’s norm
Security	Hypothecation + Guarantee of Spouse or a Family member wherever required.	Hypothecation + 2 Guarantors + Collateral Security (25%)	Hypothecation + 2 Guarantors + Collateral Security (30%)

Udyogini Scheme from Punjab & Sind Bank (PSB)

Interest Rate – Vyapar Loan	9.65% onwards (Working Capital Loan)
Loan Amount	Depends on business requirements
Processing Fee	Nil
Margin	Nil up to Rs. 25,000
Security/Collateral	Nil, up to Rs. 25,000
Loan Type	Term Loans and Working Capital Loans

Udyogini Scheme from Karnataka State Women’s Development Corporation (KSWDC)

Interest Rate	As per business requirements
Age Criteria	Min. 18 years and Max. 45 years
Loan Amount	Up to Rs. 3 lakh
Subsidy	Up to 50%, family income limit to be less than Rs. 2 lakh for SC/ST category
Family Income Criteria	No limit for women under special category and for general category – Family income should be less than Rs. 40,000
EDP Training provided	For 3 days, before loan disbursal

Note: All the above-mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the banks, NBFCs and RBI. GST and service tax shall be levied extra on the mentioned charges. Interest rates are updated as on Feb 2022.

Funding support can be availed by businesses engaged in the SSI sector, retailers, manufacturers, self-employed professionals, traders, etc. Some of the leading banks offer interest-free loans to 88 categories of SSI. Below mentioned is an exhaustive list of 88 categories that fall under SSI sector that are supported under the Udyogini Scheme:

List of 88 Business Categories supported under the Udyogini Scheme

• Agarbatti Manufacturing
• Audio & Video Cassette Parlour
• Bakeries
• Banana Tender Leaf
• Bangles
• Beauty Parlour
• Bedsheet & Towel Manufacturing
• Book Binding And Note Books Manufacturing
• Bottle Cap Manufacturing
• Cane & Bamboo Articles Manufacturing
• Canteen & Catering
• Chalk Crayon Manufacturing
• Chappal Manufacturing
• Cleaning Powder
• Clinic
• Coffee & Tea Powder
• Condiments
• Corrugated Box Manufacturing
• Cotton Thread Manufacturing
• Crèche
• Cut Piece Cloth Trade
• Dairy & Poultry Related Trade
• Diagnostic Lab
• Dry Cleaning
• Dry Fish Trade
• Eat-Outs
• Edible Oil Shop
• Energy Food
• Fair-Price Shop
• Fax Paper Manufacturing
• Fish Stalls
• Flour Mills
• Flower Shops
• Footwear Manufacturing
• Fuel Wood
• Gift Articles
• Gym Centre
• Handicrafts Manufacturing
• Household Articles Retail
• Ice Cream Parlour
• Ink Manufacture
• Jam, Jelly & Pickles Manufacturing
• Job Typing & Photocopying Service
• Jute Carpet Manufacturing
• Leaf Cups Manufacturing
• Library
• Mat Weaving
• Match Box Manufacturing
• Milk Booth
• Mutton Stalls
• Newspaper, Weekly & Monthly Magazine Vending
• Nylon Button Manufacturing
• Old Paper Marts
• Pan & Cigarette Shop
• Pan Leaf or Chewing Leaf Shop
• Papad Making
• Phenyl & Naphthalene Ball Manufacturing
• Photo Studio
• Plastic Articles Trade
• Pottery
• Printing & Dyeing of Clothes
• Quilt & Bed Manufacturing
• Radio & TV Servicing Stations
• Ragi Powder Shop
• Readymade Garments Trade
• Real Estate Agency
• Ribbon Making​​
• Sari & Embroidery Works
• Security Service
• Shikakai Powder Manufacturing
• Shops & Establishments
• Silk Thread Manufacturing
• Silk Weaving
• Silk Worm Rearing
• Soap Oil, Soap Powder & Detergent Cake Manufacturing
• Stationery Shop
• STD Booths
• Sweets Shop
• Tailoring
• Tea Stall
• Tender Coconut
• Travel Agency
• Tutorials
• Typing Institute
• Vegetable & Fruit Vending
• Vermicelli Manufacturing
• Wet Grinding
• Woollen Garments Manufacturing

Loans under Udyogini Scheme are offered by various financial institutions like co-operative banks, Regional Rural Banks (RRBs), and commercial banks at competitive interest rates. The scheme provides subsidies from the corporation for running business activities to only women entrepreneurs. Udyogini Scheme application form is available at the bank’s official websites.

FAQs on Udyogini Scheme

Q. What is the purpose of the Udyogini Scheme?

Ans. To promote women’s entrepreneurship and encourage the Small Scale Industry (SSI) sector by creating more employment opportunities and growth.

Q. How much loan I can get under the Udyogini scheme?

Ans. The maximum loan amount offered to a women entrepreneur under the Udyogini scheme is up to Rs. 3 lakh.

Q. Where Can I get a loan under this scheme?

Ans. Business loans offered under Udyogini schemes are offered by leading financial institutions. Some of the banks and NBFCs offering business loans under this scheme include Bajaj Finserv, Saraswat bank, Punjab and Sind Bank, Karnataka State Women’s Development Corporation (KSWDC), and many more.

Source

There is a lot of focus on promoting women entrepreneurship in India with the government and financial institutions having various schemes. One such scheme promoted by the State Bank of India (SBI) is Stree Shakti Package for Women Entrepreneurs. In this article, we look at the SBI Stree Sakthi Package for women Entrepreneurs in detail.

Stree Shakti Package Eligibility

Businesses operated by women entrepreneurs are eligible to receive a loan under Stree Shakti Package. For the purpose of identifying “Women Entrepreneurs” businesses, the definition recommended by the MSME Department of India will be applicable.  As per definition, a Women Entrepreneur business is “A small scale industrial unit/industry related service or business enterprise managed by one or more women entrepreneurs in proprietary concerns or in which she/they individually or jointly have a share capital of not less than 51% as partners /shareholders/Directors of Private Limited Company/Members of Co-operative Society.

Thus, women entrepreneurs or women entrepreneur business in retail trade, manufacturing or services are eligible for the scheme. Also, Women professionals like Doctors, Beauticians, Architects and Chartered Accountants can avail loan under the Stree Shakti package.

Amount of Loan

Loan in the form of term loan or working capital can be provided under the Stree Shakti package. The quantum of loan provided would be based on the borrower profile and the following guidelines:

• Retail traders: Rs. 50000 to Rs.2 Lakhs
• Business enterprises: Rs. 50000 to Rs.2 Lakhs
• Professionals: Rs. 50000 to Rs.25 Lakhs
• SSI: Rs. 50000 to Rs.25 Lakhs

As the package is aimed at Women Entrepreneurs, concessions or relaxations in the margin is in-built into the scheme along with the low floating rate of interest, linked to the base rate of the bank.

Collateral Requirement

It does not require any collateral for a loan of upto Rs.10 lakhs, extended to MSME enterprises owned by Women Entrepreneurs. Further, loans to women entrepreneurs of upto Rs.100 lakhs that can be covered under the CGTMSE scheme also requires no collateral. However, collateral is a must for any loan above Rs.1 crore or based on the borrower profile.

Documents Required

1. Proof of identity: Voter’s ID Card/ Passport/ Driving License/ PAN Card/ signature identification from present bankers of the proprietor, partner or Director (if a company).
2. Proof of residence:  Recent telephone bill, electricity bill, property tax receipt/ Passport/ Voter’s ID Card of the proprietor, partner or Director (if a company).
3. Proof of business address
4. Proof of Minority
5. Last three years balance sheets of the units along with income/sales tax returns etc.
6. Memorandum and articles of association of the Company/ Partnership Deed of partners etc.
7. Assets and liabilities statement of promoters and guarantors along with latest income tax returns.
8. Rent Agreement (if business premises on rent) and clearance from pollution control board if applicable.
9. SSI registration if applicable.
10. Projected balance sheets for the next two years in case of working capital limits and for the period of the loan in case of term loan.
11. In case of takeover of advances, sanction letters of facilities being availed from existing bankers/ Financial Institutions along with detailed terms and conditions.
12. Profile of the unit (includes names of promoters, other directors in the company, the activity being undertaken, addresses of all offices and plants, shareholding pattern etc.
13. Last three years balance sheets of the Associate/Group Companies (If any).
14. Project report (for the proposed project if term funding is required) containing details of the machinery to be acquired, from whom to be acquired, price, names of suppliers, financial details like capacity of machines, capacity utilization assumed, production, sales, projected profit and loss and balance sheets for the next 7to 8 years till the proposed loan is to be paid, the details of labour, staff to be hired, basis of assumption of such financial details etc.
15. Review of account containing month wise sales (quantity and value both), production (quantity and value), imported raw material (quantity and value), indigenous raw material (quantity and value), value of stocks in process, finished goods (quantity and value), debtors, creditors, bank’s outstandings for working capital limits, term loan limits, bills discounted.
16. Photocopies of lease deeds/title deeds of all the properties being offered as primary and collateral securities.
17. Position of accounts from the existing bankers and confirmation about the asset being Standard with them (In case of takeover).
18. Manufacturing process if applicable, the major profile of executives in the company, any tie-ups, details about raw material used and their suppliers, details about the buyers, details about major competitors and the company’s strength and weaknesses as compared to their competitors etc.

Both the government and private sectors are working towards developing the Economy by bringing financial assistance to entrepreneurs. One of the major initiatives is the Cent Kalyani Scheme for women entrepreneurs. The scheme aims at helping women establish their own businesses or expand the existing one.

What is Cent Kalyani Scheme? Cent Kalyani Scheme is a unique loan scheme from the Central Bank of India. It aims at financing women’s business dreams and helps them expand their business too. This means, women can apply for this scheme to fund their working Capital, purchasing machinery or equipment or other relevant business needs. Women from micro and small enterprises can avail this loan scheme.

Cent Kalyani Scheme- Loan Amount & Interest Rate Under the Cent Kalyani Scheme, an applicant can avail a loan up to Rs. 100 lakhs along with a margin rate of 20%. The base interest rate is 9.70%. Cent Kalyani Scheme Loan Amount (INR) Interest Rate (%) Rs. 10 lakhs 9.70% + 0.25% = 9.95% Rs. 10 lakhs-100 lakhs 9.70% + 0.50% = 10.20 Purpose of Cent Kalyani Scheme Listed below are the purpose of the scheme- 1. To Cater One of the main objectives of Cent Kalyani Scheme is to cater women entrepreneurs and help them through various government priorities such as offer them jobs, loans, subsidies, etc. 2. To Identify Another objective is to identify women with needs and encourage them by giving financial assistance to achieve their goals. 3. To Guide One of the major motto objectives behind the scheme is to guide women with business expansion and other business needs. 4. To Co-ordinate One of the main objectives is to coordinate with government and non-government organisations to help more women to gain benefits from the bank’s scheme. Eligibility for Cent Kalyani Scheme Women involved in the following trade deals can apply for this scheme:.

Professionals (Doctors, Chartered Accountants, Architects, etc) Self-employed (Catering services, canteen service, beauty parlour, boutiques, daycare centres, tailoring services, etc) Documents Required for Cent Kalyani Scheme Following are the documents to be submitted: 1. Identity Proof Voter Id Passport Driving license PAN Card KYC documents 2. Address Proof Telephone bill Property tax Receipt Electricity bill Voter’s ID card 3. Income Proof Balance sheets Profit and loss account Other financial documents 4. Business Proof Profile of business enterprise Letters of Interest, understanding, continuity and hypothecation.

Source

Official Website

SIDBI AND GOOGLE PARTNERSHIP FOR ASSISTANCE TO MICRO ENTERPRISES (SANGAM)

Objective :

Financial assistance shall be provided in the form of term loans to micro enterprises for Capex or meeting working capital requirement.

Key Features :

• Up to 100% finance
• Funding of both Capex and working capital requirement.
• Nil processing fee.
• Interest rate of 6% p.a. (5.50% p.a. for women run / owned enterprises).
• Repayment upto 5 years (3 years for WCTL).
• Availability of CGTMSE cover.

Eligibility

• Term loans to Micro enterprises.
• Minimum 2 years operations of the unit required.
• WCTL shall be provided to only those enterprises not availing WCL / OD facility from any Banks / FIs.
• Operating profit during past 2 years.
• Cash profit during past one year.
• No default / delinquency to any bank /FI, etc., during past 24 months.
• Standard Norms apply (CIBIL / CMR, due diligence checks etc.)

Target Group

Preference to women run / owned enterprises and entrepreneurs from smaller cities (beyond Metros).

Loan Amount

• TL upto 100 Lakh, subject to maximum 40% of the Net Sales for manufacturing units and 75% of Job work income / gross receipts for job work / service sector enterprises.
• Upto March 31, 2022 for sanctions.

Interest Rate

Interest Rate- Interest rate of 6% p.a. (5.50% p.a. for women run / owned enterprises).

Details : https://www.sidbi.in/en/products#section19

Mudra Yojana is a loan scheme initiated by the Government of India to offer business loans of amount up to Rs. 10 lakh at competitive interest rates to individuals, MSMEs and self-employed professionals. No collateral or security is required by any financial institution from the borrowers applying for Mudra loan. The maximum repayment tenure offered under Mudra Yojana is up to 5 years with Nil to nominal processing fees.

Micro Units Development and Refinance Agency (MUDRA) Loan scheme under Pradhan Mantri Mudra Yojana (PMMY) is an initiative by the Government of India that offers loans to individuals and MSMEs with the help of banks and NBFCs. Collateral-free business loans offered under MUDRA Yojana come in three loan categories, named Shishu, Kishor, and Tarun.

Features of Mudra Loan

Nature of Loan	Term Loan, Working Capital and Overdraft
Types of Mudra Schemes	Shishu, Kishor, and Tarun
Loan Amount	Under Shishu Scheme: Up to Rs. 50,000Under Kishor Scheme: Rs. 50,001 – Rs. 5,00,000Under Tarun Scheme: Rs. 5,00,001 – Rs. 10,00,000
Interest Rates	As per the applicant’s profile and business requirements
Processing Charges	Nil, or 0.50% of the sanctioned loan amount
Collateral/Security	Not required by Banks/NBFCs
Repayment Tenure	From 12 months to 5 years
Foreclosure Charges	Nil

Eligible Entities

Loans under Mudra scheme can be availed by individuals, startups, shopkeepers, street vendors, retailers, traders, small manufacturers, artisans, and MSMEs. Mudra Loan can also be availed by Sole Proprietorships, Partnership firms, and Limited Liability Partnerships (LLPs) engaged only in the services, manufacturing, and trading sectors.

Benefits of Mudra Loan

• Collateral-free loans – No collateral or security is required by the banks/NBFCs form the borrower
• Low-interest rates with even Nil to nominal processing fees
• Concessional interest rates for women entrepreneurs
• Loans covered under Credit Guarantee Schemes from Govt. of India
• Can be used as Term loans, Working capital loans, and Overdraft facilities
• All Non-farm enterprises, i.e. Small or Micro firms engaged in income-generating activities can avail Mudra loans
• Mudra loans can also be availed by people belonging to SC/ ST/ Minority category at special interest rates

How to Apply 

The application form is available at mudra.org.in, so you can download the form and fill in all the required details. Different banks may have slightly different application procedures. You must visit the nearest branch of the desired bank from where you want to get the Mudra loan and submit the duly filled application form and complete the bank formalities.

Secondly, you can also apply online on the bank’s official website by submitting the duly filled application form along with the required documents as specified by the lender. Once the lender is satisfied with the submitted documents, then shall approve the loan and you may receive the loan amount in your mentioned bank account within a few working days.

Documents required

• Duly filled application with passport-sized photographs
• KYC documents of Applicant and Co-applicants: Passport, Voter’s ID card, Aadhar Card, Driving License, PAN card, Utility Bills (Water/Electricity Bills)
• Proof of belonging to a special category, such as SC/ ST/ OBC/ Minority, etc. (if applicable)
• Last 6 months’ bank statement
• Business address and tenure proof, if applicable
• Any other documents required by the bank or NBFC

Note: The Mudra loan application form to be filled and submitted is separate in the case of Shishu, whereas similar in the case of Kishor and Tarun loan schemes.

List of Businesses covered under Mudra Scheme

List of businesses that are covered under the Mudra scheme to perform income-generating activities is mentioned below:

• Commercial Vehicle: Mudra finance for machinery and equipment can be used to purchase commercial transport vehicles like tractors, auto-rickshaws, taxis, trollies, tillers, goods transports vehicles, 3-wheelers, e-rickshaws, etc.
• Service Sector Activities: Starting businesses of salons, gyms, tailoring shops, medical shops, repair shops, and dry cleaning and photocopying shops, etc.
• Food and Textile Product Sector Activities: Various activities involved in the respective sector, such as papad, achaar, ice cream, biscuits, jam, jelly, and sweets making, as well as for agriculture produce preservation at rural level
• Business activities for Traders and Shopkeepers: Setting up shops, service enterprises, trading and business activities, and non-farm income-generating activities
• Equipment Finance Scheme for Micro Units: Maximum loan up to Rs. 10 lakh
• Agri-allied Activities: Activities related to businesses in agri-clinics and agribusiness centers, food & agro-processing units, poultry farming, pisciculture, beekeeping, sorting, livestock-rearing, grading, aggregation agro-industries, dairy, fishery, etc.

Mudra Loans for Women Entrepreneurs

Mudra Yojana under PMMY encourages women entrepreneurship and for that private and public sector banks, NBFCs & Micro Finance Institutions (MFIs) offer collateral-free business loans at reduced or concessional interest rates for women entrepreneurs. The maximum loan amount offered under Mudra Yojana for women entrepreneurs is up to Rs. 10 lakh with repayment tenure of up to 5 years. The Mudra loan eligibility for women remains the same, as stated for individuals and enterprises. Nil to nominal processing fee is charged on the sanctioned loan amount for women entrepreneurs.

MUDRA Card

Mudra card is a type of debit card that is issued to the borrowers of Mudra loans to meet their business and working capital requirements. After Mudra loan approval, the lender opens a Mudra loan account for the borrower and issues a debit card along with it. The loan amount is disbursed in the bank account and further can be withdrawn from the total sanctioned amount in portions by borrowers, as per their business requirements.

Official Website

Source

With the objective to encourage women entrepreneurs and give impetus to their business journey, the Ministry of Social Justice and Empowerment, the Government of India has implemented a strategic policy – Mahila Samridhi Yojana. Under the visionary scheme, the government provides microfinance to women entrepreneurs hailing from marginalized sections of the society – backward classes. Designed considering women’s empowerment, the flagship scheme is being implemented by a wide range of channel partners nationwide. Targeted women beneficiaries are identified and given loans either directly or in the form of Self-Help Groups (SHGs).

The guidelines under the Mahila Samridhi Yojana (MSY) clearly signify that the loan to the tune of 95% will be sanctioned, while the balance 5% will be funded by the State Channelizing Agencies (SCAs) or beneficiary contribution. Guidelines indicate that the utilization period for the loan received is 4 months, starting from the date of disbursement of the loan.

Limit of Loan	Interest Chargeable
Rs. 1,40,000 per beneficiary	SCA	Beneficiary
1% per annum	4% per annum

Loan Repayment Tenure: 3 years and 6 months

Moratorium Period: 3 months

Eligibility

As the MSY scheme is dedicated to bringing about a turnaround in the lives of women belonging to the marginalized sections of the society, stringent eligibility criteria is in place to ensure fair disbursal of the loan. The eligibility criteria comprise:

• SHGs and women entrepreneur from backward sections of the society are only eligible to draw the benefit of MSY loan
• Woman beneficiary of the minimum age of 18 years
• Beneficiary falling under the BPL category
• Annual income of the beneficiary should be less Rs. 3 lakh per annum
• No criminal past record

Any kind of misrepresentation or fudging of data might lead to the rejection of an application.

Documents Required

The MSY loan has been receiving an overwhelming response from the women hailing from every nook and corner of the country. There are plenty of reasons to corroborate the fact, minimal documentation is one among them. The following documents are required to avail the loan facility intended to empower women and lift their socio-economic status:

• Proof of Identity – Voter ID card
• Self-group membership ID card
• Income certificate issued by the competent authority
• Filled in the application form to obtain the Mahila Samridhi Yojna loan
• Aadhaar card
• Caste certificate issued by the competent authority
• Bank account book
• Passport size photograph
• Proof of residence (Electricity bill or ration card can be furnished)

As the MSY loan is intended for the backward sections, it has come to light, a substantial number of women beneficiaries have lifted their socio-economic status.

Features & Benefits

The flagship scheme of the Ministry of Social Justice and Empowerment, the Government of India has been instrumental in transforming the lives of hundreds of women across India. Some of the benefits include:

• Lifts the socio-economic condition of the beneficiary
• Plays a role in mainstreaming of the poverty-ridden family
• Supports in generating employment opportunities
• Cultivates entrepreneurship among women
• Empowers the women, make them self-reliant
• Minimal documentation
• Raises the self-belief in women

Other Significant Information

Self Help Groups (SHGs): Economically aligned group of people who voluntarily develop a group to raise their income by saving and contributing to group activities.

Channel Partners: Channel partners are represented by competent professionals in the field; help the group and its members in economic activities and in availing the MSY loan.

Member Ration: As per the rules and regulations, maximum women members allowed in an SHG are – 20. The 75% of members should be from the backward classes as mandated by the eligibility criteria, while the remaining 25% of women members could be from other weaker sections – Scheduled Caste or physically handicapped.

Loan Disbursal: Loan is disbursed through the State Channelizing Agencies (SCAs), Regional Rural Banks (RRBs) and the nationalized banks to the beneficiaries.

Mahila Udyam Nidhi (MUN) Scheme is a scheme offered under the 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 loans up 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.

Eligibility Criteria
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 a minimum investment of at least Rs. 5 lakh MSMEs engaged in various activities, such as business expansion, improvement, diversification, and technology upgradation.

Features of Project Profile

• Project cost must not exceed Rs. 10 lakh
• Loan limit of up to 25% of project cost, subject to a maximum of Rs. 2.5 lakh per project is offered to deserving women entrepreneurs
• Repayment tenure of the loan is up to 10 years, including a moratorium period of 5 years
• Interest rates fixed by SIDBI and offered by banks may vary from time to time and shall be communicated by SIDBI to women entrepreneurs
• Service charge of 1% per annum is charged 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 Desktop publishing
• Crèche
• Cyber Café
• Daycare centre
• ISD / STD Booth
• Laundry & Dry Cleaning
• Mobile Repairing
• Photocopying (Xerox) Centre
• Purchase of auto-rickshaws, two-wheelers, cars
• TV Repairing
• Road transport operator
• Salon
• Servicing of Agricultural and Farm equipment
• Tailoring
• Training Institute
• Typing Centre
• Washing machines and other electronic and electrical gadgets, etc.

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 businesses and promotes them to grow and expand in their areas 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.