Mahila Udyam Nidhi Scheme

We know how challenging it can feel to start a new venture or grow your existing MSME, especially when funding is a hurdle. That’s why we would like to introduce you to the SIDBI Mahila Udyam Nidhi Scheme. First launched in 1987 by the Industrial Development Bank of India (IDBI), it has now been operated by SIDBI since April 1990. It is a government initiative that is helping women entrepreneurs across India to scale up their businesses. If you’re just getting started or looking to expand your business, this scheme could be the financial support you need to take the next big step.

What is the Mahila Udyam Nidhi Scheme?

The Mahila Udyam Nidhi Scheme is a special financing program initiated by the Small Industries Development Bank of India (SIDBI) to support women entrepreneurs. It offers soft loans at concessional rates, which makes it easier for women to set up new businesses, expand existing ones, or even revive underdeveloped units. The scheme is available through Punjab National Bank (PNB), not just limited with SIDBI, so you can easily avail of the benefits. Similarly, the applications are accepted year-round, hence, you can apply anytime when you need financial support.

Objective of Mahila Udyam Nidhi Scheme SIDBI

The objective of the scheme is to:

• Help bridge the funding gap so you can start or grow your business without financial worries.
• Empower more women like you to take charge and sustain your ventures confidently.
• Promote women’s active participation in entrepreneurship and business ownership.
• Create more job opportunities in the MSME sector.
• Reduce gender gaps in business and support economic equality.
• Support your plans for expansion, modernization, or rehabilitation of your small or service business.
• Strengthen the role of women-led MSMEs in driving India’s economic growth.

 Key Features of SIDBI Mahila Udyam Nidhi Scheme

• You can get a loan of up to ₹10 lakhs for eligible projects.
• The scheme is available for manufacturing, production, and service-based MSMEs.
• You can receive a soft loan covering up to 25% of your total project cost, capped at ₹2.5 lakhs.
• The interest rates are concessional. They vary based on the project cost, credit history, and bank.
• For the soft loans, service charges payable are just 1% per year.
• You get up to 10 years to repay the loan, including a moratorium period of up to 5 years to ease your repayments.
• The loans are collateral-free, which means less risk and hassle for you.

 Loan offered under the SIDBI Mahila Udyam Nidhi Scheme

Note:

• The soft loan is in addition to the term loan and is subject to project cost and eligibility.
• For a soft loan, only a 1% annual service fee is charged, which the lending office can keep.

 Eligibility Criteria for the Mahila Udyam Nidhi Scheme

Eligibility

You can apply if:

• You are a woman entrepreneur starting a new or expanding business.
• Your business qualifies as a “tiny” or “small” enterprise as per MSME definitions.
• The project cost does not exceed ₹10 lakhs.
• The unit is new, existing, or a viable sick unit being revived.
• You have made the minimum investment of ₹5 lakhs in your business.
• Women entrepreneurs who hold a minimum of 51% of the shares in the business or enterprise.
• Your business falls under the manufacturing, production, or service sectors and is limited to trading.

Non-Eligibility

You are not eligible if:

• Male-owned or male-majority businesses cannot apply.
• The unit does not meet MSME/tiny enterprise criteria.
• If your unit has already availed loan facilities under any government-sponsored scheme, then you are not eligible for the Mahila Udyam Nidhi Scheme.

Note: You should use the loan to purchase raw materials, machinery, equipment, and other assets necessary to start your business.  

Documents Required for Mahila Udyam Nidhi Scheme Application 

To apply, keep these documents ready:

• Duly filled application form (available from your chosen bank/financial institution).
• Proof of identity and address (Aadhaar, PAN, Voter ID, etc.).
• Residential proof
• Proof of business address (rental agreement, utility bill, etc.).
• Proof of business ownership/partnership deed.
• Project report/business plan.
• Quotation for machinery/equipment (if applicable).
• Bank statements (typically last 6 months).
• Passport-size photographs.
• Any additional documents as required by the lending institution.

How to Apply for SIDBI Mahila Udyam Nidhi Scheme?

Here’s how you can get started:

Step 1: Visit the official website of the lender you want to apply through. This could be SIDBI, Punjab National Bank (PNB), or other participating banks or NBFCs.

Step 2: Use the website’s search bar to look for “Mahila Udyam Nidhi Scheme” and click on the right link.

Step 3: Download the application form from the website and print it out.

Step 4: Fill the form manually with your business and personal details.

Step 5: Gather all the documents required for the application and attach them to your application form.

Step 6: Submit your application by visiting the nearest branch of your chosen bank or NBFC. 

Step 7: After submitting, keep track of your application status by following up with the branch.

Step 8: Once SIDBI approves and sanctions the loan, the money will be directly transferred to your business account by the bank or NBFC.

 Benefits of Mahila Udyam Nidhi Scheme (SIDBI)

• Easy Access to Capital
  You don’t have to worry about giving collateral or facing high interest rates. The Mahila Nidhi scheme makes getting funds much easier for you.
• Longer Repayment Tenure
  It gives you up to 10 years to repay the loan, with a moratorium of 5 years. So you can focus on growing your business first.
• Empowerment
  It encourages you to become a job creator, turning your entrepreneurial dreams into something real.
• Business Expansion
  Whether you want to start a new project, modernize, or expand your business, the scheme provides the funds you need to grow.
• Nation-building
  Every woman-led business supported by the scheme contributes to India’s overall economic progress.

Real-World Examples of Mahila Udyam Nidhi Scheme

• Aditi’s Boutique Expansion
• Priya’s Food Processing Unit Revival
• Neha’s Tech Startup Launch

Related Government Support Plans with Mahila Udyam Nidhi Scheme 

Final Word

If you’re a woman entrepreneur with big dreams, the Mahila Udyam Nidhi Scheme is designed to support you at every step. The scheme empowers your vision and strength, offering funding that’s simple and accessible.

So, don’t let funding hold you back; take that leap, and build your business confidently!