How does Mahila Udyam Nidhi Yojana Fuels Women Entrepreneurs?

Looking to start or revamp your business? Discover the empowering Mahila Udyam Nidhi Yojana, an exclusive scheme for women offered by Punjab National Bank in collaboration with Startup India.

Sonu Vivek
12 Jun 2023
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Attention all women entrepreneurs who want to establish their own business or revamp an existing one! Look no further than the empowering Mahila Udyam Nidhi Yojana. 

In collaboration with Startup India, Punjab National Bank offers a scheme designed exclusively for women in the startup ecosystem. Gain financial assistance, project support, and access to technological upgrades with the scheme. 

What is Mahila Udyam Nidhi Yojana?

The Mahila Udyam Nidhi Yojana is an empowering scheme facilitated by the Punjab National Bank in collaboration with the Ministry of Finance. 

How can Mahila Udyam Nidhi Yojana be a game-changer for women entrepreneurs?

It aims to support women entrepreneurs in establishing new projects in the tiny/small-scale sector and reviving viable sick SSI (Small-Scale Industries) units. 

Additionally, existing tiny and small-scale industrial units and service industries undergoing expansion, modernization, technological upgrading, and diversification are also eligible for consideration. The scheme offers a soft loan of up to 25% of the project cost, with a maximum limit of Rs.2.5 lakhs per project. The repayment period for the soft loan is ten years, including an initial moratorium period of up to five years.

Benefits of the Mahila Udyam Nidhi Yojana

The Mahila Udyam Nidhi Yojana presents several benefits for women entrepreneurs:

  • Financial Assistance: Eligible women entrepreneurs receive a soft loan to support their projects, facilitating their business endeavors and growth.
  • Project Support: The scheme extends assistance to both new and existing businesses in the tiny/small-scale sector, enabling them to establish or expand their ventures.
  • Rehabilitation of Sick Units: The scheme aids in the revival of viable sick SSI units, providing a much-needed lifeline for struggling businesses.
  • Technological Upgradation: Women entrepreneurs seeking to upgrade their technological infrastructure can utilize the scheme to modernize their operations and stay competitive in the market.

Eligibility Criteria for the Mahila Udyam Nidhi Yojana

To avail the benefits of the Mahila Udyam Nidhi Yojana, the following eligibility criteria must be met:

  • MSME or Tiny Units: All existing and new Micro, Small, and Medium Enterprises (MSMEs) or Tiny Units must be promoted exclusively by women entrepreneurs or have a majority of women entrepreneurs in the business.
  • Project Cost: The project cost should not exceed Rs.10 lakhs, ensuring that the scheme caters to enterprises within the specified financial limits.

Application Process for the Mahila Udyam Nidhi Yojana

Follow the steps below to apply for the Mahila Udyam Nidhi Yojana:

  1. Visit the official website of the Punjab National Bank.
  2. On the homepage, locate the search box and enter "Mahila Udyam Nidhi Yojana." Click on the search button.
  3. Scroll down until you find the application form for an MSME loan.
  4. Select the option for loans up to 1 crore from the available choices.
  5. You will be redirected to an Application Form. Download and print it to fill it out manually.
  6. The first page of the form contains a Provisional Acknowledgement. Starting from the second page, fill out the application form as follows:
  • Enter the names of the Unit/Applicant, Registered Office Address, and the Factory/Shop/Business address.
  • Provide your complete contact details, including phone number, PAN card, E-mail ID, and Udyog Number.
  • Enter complete firm details such as the Nature of the Business, Partners in the firm, Banking/Credit Facilities, Components of Proposed Machinery, and other equipment.
  • Provide details of your collateral security, including third-party collateral security.
  • On the fifth page, provide information about the past performance of the firm and future business estimation.
  • Answer the question regarding statutory obligations by selecting "Yes" or "No."
  • Provide details of your Address proof and ID proof.
  • Attach a recent photograph and signature on the form.
  • Lastly, fill in the place, signature, and date details.

After completing the form, submit it to the nearest Punjab National Bank (PNB) branch for verification.

The Mahila Udyam Nidhi Yojana is a game-changer for women entrepreneurs. With financial assistance, project support, and opportunities for technological upgrades, the scheme empowers women to establish and grow their businesses. Eligible entrepreneurs can take advantage of this scheme by following the simple application process outlined on the Punjab National Bank's official website.