Mahila Udyam Nidhi Scheme

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What exactly is the Mahila Udyam Nidhi Yojana?

The Mahila Udyam Nidhi (MUN) Plan is a scheme sponsored by the Small Industrial Development Bank of India (SIDBI) to support and empower female entrepreneurs and promote female entrepreneurship by providing financial assistance at low-interest rates. MSMEs can use the financing given by the Mahila Udyam Nidhi Scheme to engage in service, manufacturing, and production-related activities.

Women entrepreneurs can apply for loans of up to Rs. 10 lakh under the Mahila Udyam Nidhi Scheme to start their own business or small scale firm. The interest rates given under this arrangement may differ from one bank to the next. The financing assistance may also be utilised to improve or extend existing projects.

The maximum loan payback length available under this arrangement is up to ten years, with moratorium periods of up to five years.

Criteria for Eligibility

  • Women entrepreneurs who founded current and new MSMEs, Tiny Units, or SSIs
  • The financial holdings of women entrepreneurs involved in manufacturing and production should not be less than 51 per cent.
  • Existing or new MSMEs that solely operate in the service, commerce, and manufacturing sectors
  • MSMEs, or small and medium-sized firms, with a minimum investment of Rs. 5 lakh
  • MSMEs are involved in a variety of activities, including company development, improvement, diversification, and technological advancement.


  • The total cost of the project cannot exceed Rs. 10 lakh.
  • To qualifying women entrepreneurs, a loan ceiling of up to 25% of project cost, subject to a maximum of Rs. 2.5 lakh per project, is granted.
  • The loan has a repayment duration of up to ten years, including a five-year moratorium period.
  • Interest rates set by SIDBI and given by banks may fluctuate from time to time and will be disclosed to women entrepreneurs by SIDBI.
  • According to the sanctioned loan, the appropriate bank charges a service charge of 1% each year.
  • The loan office determines whether or not to waive the service charge.

The Advantages of the Mahila Udyog Nidhi Yojana

  • Encourages female entrepreneurs
  • Increases the number of jobs available in the micro and small-scale sectors.
  • Contributes to closing the equity gap
  • Rehabilitates underperforming SSI units
  • Service industry expansion, modernisation, and technological advancement

The following activities are covered in the Mahila Udyam Nidhi Scheme:

  • Auto-repair and service centre
  • Cable TV Network for Beauty Salons
  • Restaurant and Canteen
  • Desktop publishing on a computer
  • Crèche
  • Cyber Café Daycare Facility
  • Laundry & Dry Cleaning in ISD / STD Booths
  • Repairing Mobile Devices
  • Xerox Photocopying Center
  • Purchase of autorickshaws, two-wheelers, and automobiles
  • TV Restoration
  • Transporter of goods by road
  • Agricultural and farm equipment salon service
  • Typing and Tailoring Training Institute
  • Washing machines and other technological and electrical devices, for example.


Punjab National Bank originally introduced the Mahila Udyam Nidhi Scheme to help women entrepreneurs who are involved in SSIs. However, some banks provide the Mahila Udyam Nidhi Scheme at reasonable and competitive interest rates. Furthermore, no collateral or security is required for women entrepreneurs to launch their businesses. This programme assists female entrepreneurs in establishing their own enterprises and encourages them to grow and expand in their areas of interest and talents.

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