This article examines the Mahila Udyam Nidhi Scheme offered by the Government of India to female citizens. Additionally, we will discuss the eligibility criteria and industries that are eligible for this scheme.Women who start, create, or develop a commercial enterprise are called Women Entrepreneurs.
This article examines the Mahila Udyam Nidhi Scheme offered by the Government of India to female citizens. Additionally, we will discuss the eligibility criteria and industries that are eligible for this scheme.
Women who start, create, or develop a commercial enterprise are called Women Entrepreneurs.
Around 13.76 percent of entrepreneurs in the country are women, and more than 20 percent of small and medium-sized businesses are owned by female entrepreneurs. It is particularly difficult for women to break into the Indian Entrepreneurial Community.
Nearly every field has inequities, resulting in women competing against their counterparts. Bearing that in mind the Government of India has put forth several schemes designed to help women of all ages, develop their potential and broaden their horizons. Among these is the Mahila Udyam Nidhi Scheme.
Mahila Udyam Nidhi scheme was an initiative of Punjab National Ban. It was launched under the aegis of SIDBI (Small Industrial Development Bank of India). This initiative was set up to provide credit facilities and financial assistance to women in the manufacturing, production, and service industries. This scheme takes into account, small businesses with startup requirements.
The initiative has led to the creation of more jobs in the small and micro-scale sectors and a number of other banks have jumped on board following their successful introduction and transformation.
The program is designed to empower women entrepreneurs by providing them with financial support that will enable them to become self-sufficient. As well as to encourage women to enter the mainstream business world. In addition to empowering Women Entrepreneurs, a major goal of the initiative was to provide them with the necessary tools to run successful businesses and to reinforce weak SSI (Small Scale Industries) units
All types of firms in the production, manufacturing, and service industries can qualify for these collateral-free loans. Those eligible for the loan will receive a maximum loan amount of 25% of their total business cost, or Rs 2.5 lakhs per project. However, the total cost of the project must not exceed Rs. 10 Lakh. You can repay this loan amount within a period of ten years. It includes a moratorium of five years.
Businesses that are currently involved in production or manufacturing can use this amount to upgrade and enhance existing businesses, as well as in upgrading technology in the service sector. This facility is available without any collateral against the services.
Small Industrial Development Banks of India (SIDBI) provide guidance, while the financial institutions take care of the implementation. There is a low and subsidized rate of interest, although it may vary depending on the financial institution you obtain the loan from. The rate of interest is determined by a number of factors, such as the credit history of the borrower, their repayment capacity, as well as their location, and business model.
Occasionally, banks impose a service charge of 1% per year; however, in some cases, it can be exempted.
You can find the steps of the loan application below:
In spite of efforts by our Government, Microfinance Institutions, and Non-Governmental Organizations to raise awareness among specific sections of society, the impact has been less than what was anticipated. Due to the lack of insight and awareness, many people either do not know about or cannot utilize these exclusive borrowing opportunities.
To advance women’s prospects, support groups and collaborative efforts would be beneficial. As many women as possible could learn from other female entrepreneurs’ success stories.
To know more details on Mahila Udyam Nidhi Scheme . You can email firstname.lastname@example.org or call at +918886666821.