What is the Mahila Udyam Nidhi Scheme?
Mahila Udyam Nidhi was created to support women entrepreneurs in production, manufacturing, or service-related industries.
This scheme provides support in the form of financial assistance and loan facilities to such entrepreneurs. In the initial phase, Punjab National Bank formulated this scheme under the supervision of SIDBI (Small Industries Development Bank of India), and then other financial institutions came through.
This scheme allows loans of up to 25% of the total cost of the business venture. This scheme facilitates women entrepreneurs' meeting the gap in equity.
With the help of this scheme, women entrepreneurs are assisted in monetary terms to revive sick industrial units and to turn those units into viable units of production.
This scheme aims to promote women entrepreneurs and promote inclusivity by facilitating credit facilities for women entrepreneurs engaged in small-scale industries.
As of now, this scheme is only functional in the Punjab National Bank. This scheme can be accessed from Punjab National Bank’s website.
What are the features of the Mahila Udyam Scheme?
1. With the help of this scheme, women engaged in entrepreneurial business are eligible to avail loans up to 10 lakh rupees.
2. This amount can be borrowed without any collateral or security.
3. The borrowed amount is required to be returned in a maximum period of 10 years, and the loan moratorium can be extended up to five years.
4. The interest rates are generally slashed and differ from project to project and are influenced by factors such as the cost of the project and the type of the project.
5. There is a ceiling limit of 2.5 lakh rupees per project.
6. The amount from this scheme is allowed for use in production, service-related activities, and production.
7. Loans sanctioned under this scheme charge a service fee of 1% per annum. Moreover, this fee can be waived or can vary as per the discretionary power of the lending authority.
What are the eligibility criteria for the Mahila Udyam Nidhi Scheme?
1. Since this scheme tends to be aimed at women entrepreneurs. Therefore, it is required for a woman to be a holder of at least 51% shares.
2. The business project is required to have a minimum investment of rupees five lakh.
3. The amount of the loan can only be used for specific purposes.
4. Moreover, the amount availed cannot be used for personal use and is only sanctioned to businesses engaged in manufacturing, service, or production-related activities.
5. Organizations that are operating as MSMEs or SSIs.
What are the benefits of the Mahila Udyam Scheme?
1. Helps in reducing unemployment in small-scale sectors.
2. Promotes entrepreneurial skills among women.
3. Facilitates expansion and promotes modernization in small-scale industries.
4. Serves as a chance for weak industries to sustain and rehabilitate.
How do I apply for the Mahila Udyam Nidhi Scheme?
Step 1: Search for the Mahila Udyam Nidhi Scheme by first visiting the PNB’s official website.
Step 2: Under the MSME loans option, click the option for loans up to Rs. 1,00,00,000.
Step 3: Download the application form. After downloading the form, take a print-out and fill in the form duly with the relevant details.
Step 4: You are also required to provide details of collateral security, if any.
Step 5: Provide details of your company’s previous performance as well as future goals.
Step 6: Select ‘Yes’ or ‘No’ under Statutory Obligations.
Step 7: Provide government ID proof and a verified proof of address.
Step 8: Attach the photographs and put your signature on the form.
Step 9: After the completion of the form, submit it to the closest PNB branch for further verification and approval.
What are the documents required to apply for a loan under the Mahila Udyam Scheme?
1. Duly filled Application Form
2. Passport-sized photographs
3. Applicant’s Aadhaar Card or Birth Certificate
4. Ration Card or BPL (Below Poverty Line) Card (whichever is applicable)
5. Proof of Address
6. Proof of Income
7. Caste Certificate, (if available)
8. Copy of the bank passbook that contains the account number, bank and branch names, holder name, IFSC code, and MICR code)
9. Any other document required by the bank/NBFC
Conclusion
This scheme not only promotes women entrepreneurs but in general, it has also proven helpful in increasing overall employment among women on a larger scale.
Schemes like Mahila Udyam Nidhi are a boon for such women entrepreneurs who are engaged in small-scale sectors and wish to expand the scope of their business.
At present, only the Punjab National Bank provides this facility. The application form and other due requirements that are required to avail credit under this scheme can be complied with and obligated with the help of a legal professional.
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