Sidbi Mahila Udyam Nidhi

Sidbi Mahila Udyam Nidhi is designed to help meet gap in equity in

startups by women entrepreneurs. SIDBI or Small Industries Development Bank of India is the principal financial institution for the promotion, financing and development of industry in the small scale sector.

Purpose of Mahila Udyam Nidhi

The purpose of Mahila Udyam Nidhi is to help women entrepreneurs meeting equity funds requirement will setting up a new business.

Eligibility Criteria

All existing and new MSME or Tiny Units promoted exclusively by women entrepreneurs or a business consisting of majority of women entrepreneurs are eligible. Mainly the scheme helps women entrepreneurs for setting up new projects in tiny or small scale sector and rehabilitation of viable sick MSME businesses. Existing tiny and small scale business in manufacturing and service sector (except road transport operators) satisfying the investment ceiling (Rs.5 lakhs investment) prescribed for tiny enterprises and under expansion, modernisation, technology upgradation and diversification are also eligible for the scheme.

Project Profile

To be eligible for the Mahila Udyam Nidhi scheme, the cost of the project must not exceed Rs.10 lakhs. In such cases, a soft loan limit of upto 25% of the project cost, subject to a maximum of Rs.2.5 lakhs per project is provided for deserving women entrepreneurs. The soft loan would be repayable within 10 years (inclusive of initial moratorium period of not more than five years). However, the period of repayment of soft loan will be co-terminus with that of term loan sanctioned by a scheduled bank.

Cost of Financing

In case of a soft loan, only service charge @ 1% p.a. is payable, which may be retained by lending office. As for the term loan, the interest rates will be as advised from time to time or be structured under the refinance scheme as fixed by SIDBI from time to time.

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Frequently Asked Questions

Common questions about SIDBI Mahila Udyam Nidhi.

The SIDBI Mahila Udyam Nidhi scheme is designed to provide equity support to women entrepreneurs for setting up new businesses or rehabilitating viable sick MSME businesses. It aims to bridge the gap in equity funding for startups led by women entrepreneurs.

All existing and new MSME or Tiny Units promoted exclusively by women entrepreneurs or businesses consisting of a majority of women entrepreneurs are eligible for the Mahila Udyam Nidhi scheme. It covers units in the manufacturing and service sectors, except for road transport operators.

To be eligible for the Mahila Udyam Nidhi scheme, the cost of the project must not exceed Rs. 10 lakhs. The scheme provides a soft loan of up to 25% of the project cost, subject to a maximum of Rs. 2.5 lakhs per project.

The soft loan provided under the Mahila Udyam Nidhi scheme is repayable within 10 years, including an initial moratorium period of not more than five years. However, the repayment period will be co-terminus with the term loan sanctioned by a scheduled bank.

For the soft loan under the Mahila Udyam Nidhi scheme, only a service charge of 1% per annum is payable. As for the term loan, the interest rates will be as advised by SIDBI from time to time or structured under their refinance scheme.

The primary purpose of the SIDBI Mahila Udyam Nidhi scheme is to assist women entrepreneurs in meeting their equity funding requirements for setting up new businesses or rehabilitating viable sick MSME units.

Existing tiny and small-scale businesses in the manufacturing and service sectors, satisfying the investment ceiling of Rs. 5 lakhs prescribed for tiny enterprises, are eligible for the Mahila Udyam Nidhi scheme.

Yes, the Mahila Udyam Nidhi scheme can be utilized for the expansion, modernization, technology upgradation, and diversification of existing tiny and small-scale businesses in the eligible sectors.

SIDBI (Small Industries Development Bank of India) is the principal financial institution responsible for the promotion, financing, and development of industries in the small-scale sector. It administers the Mahila Udyam Nidhi scheme to support women entrepreneurs.

The Mahila Udyam Nidhi scheme is applicable to businesses in the manufacturing and service sectors, except for road transport operators. It covers a wide range of industries within the MSME and tiny enterprise categories.