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Introduction to Mahila Udyam Nidhi Yojana
The Mahila Udyam Nidhi Yojana (also known as Mahila Udyam Nidhi Scheme) is a specialized financing initiative by the Small Industries Development Bank of India (SIDBI) to promote women entrepreneurship. Launched to support women in setting up or expanding micro and small enterprises, it provides soft loans (concessional term loans) for new projects in manufacturing, services, and allied sectors. Animal Husbandry Infrastructure Development Fund AHIDF 2026: Secure 3% Interest Subvention & 90% Credit Guarantee for Dairy
The scheme offers loans up to ₹10 lakh with relaxed terms, low interest rates, and often collateral-free options for smaller amounts. It focuses on women-owned MSMEs, helping bridge equity gaps and encourage self-employment. Historically, it has empowered thousands of women in tiny and small-scale businesses like handicrafts, food processing, tailoring, and retail. Dairy Entrepreneurship Development Scheme DEDS 2026: Get 25-33% Capital Subsidy for Dairy
However, the scheme has been discontinued or phased out by SIDBI in recent years (no new applications under direct SIDBI since around 2020-21, similar to other legacy schemes). Some partner banks like Punjab National Bank (PNB) may still offer variants under PNB Mahila Udyam Nidhi Scheme for equity support. In 2026, women entrepreneurs can access similar benefits through active schemes like Pradhan Mantri Mudra Yojana (PMMY), Stand-Up India, or SIDBI’s ongoing MSME products with women priority. These provide higher limits, subsidies, and digital applications.
Why Choose Mahila Udyam Nidhi Yojana or Similar Schemes?
This scheme (and its alternatives) makes entrepreneurship easier for women with low own funds. Concessional rates reduce repayment burden. Loans fund machinery, working capital, or expansion. In 2026, digital portals speed approvals. Women get priority in government schemes, creating jobs and financial independence. NABARD Agriculture Loan Scheme 2026: Secure Low-Interest Crop Loans at 4% Effective Rate
It suits rural and urban women in MSMEs. Collateral-free up to certain limits lowers risk. Alternatives like Mudra offer up to ₹10 lakh without security, while Stand-Up India provides up to ₹1 crore+.
Benefits of Mahila Udyam Nidhi Yojana & Alternatives
Soft loans empower women. Flexible usage. High success in small ventures.
Key Advantages Table
| Advantage | Description |
|---|---|
| Concessional Loans | Soft interest rates, often lower than market. |
| Loan Limits | Up to ₹10 lakh (legacy); higher in alternatives. |
| Collateral-Free | No security for small loans. |
| Women Focus | Priority and relaxed norms. |
| Current Options | Mudra, Stand-Up India for seamless access. |
Key Features of Mahila Udyam Nidhi Yojana (Historical)
The scheme provided term loans for project costs up to ₹10 lakh.
Loan and Subsidy Details
- Loan: Up to ₹10 lakh for new/expansion projects.
- Interest: Concessional (bank-determined, often 8-10%).
- Repayment: Up to 7-10 years.
- Collateral: Often none for micro units.
- Focus: Tiny/small enterprises in services/manufacturing.
Loan Features Table
| Feature | Details |
|---|---|
| Loan Amount | Up to ₹10 lakh |
| Project Cost Cap | ₹10 lakh (some variants ₹2.5 lakh equity gap) |
| Tenure | 5-10 years |
| Interest | Concessional, soft terms |
| Collateral | Minimal/none for small |
Eligibility for Mahila Udyam Nidhi Yojana (and Alternatives)
Women entrepreneurs for MSMEs.
Eligibility Criteria
- Women (individual or majority owner).
- Age 18+.
- New or existing small units.
- Viable project.
- No defaults.
- For alternatives: Udyam registration, priority for SC/ST/women.
Interest Rates and Charges
Concessional rates in legacy scheme.
Interest Rate Table
| Scheme | Rate Range |
|---|---|
| Legacy Mahila Udyam Nidhi | 8-10% concessional |
| Current Alternatives (Mudra) | 7.5-12% |
How to Apply for Similar Women Loan Schemes in 2026
Since direct scheme discontinued, use Mudra/Stand-Up India.
Application Process
- Register Udyam/MSME.
- Visit bank (SBI/PNB) or portal (jansamarth.in).
- Fill application, upload docs.
- Bank appraises/sanctions.
- Funds disbursed.
For PNB variant: Approach PNB branch.
Required Documents
Basic for women loans.
Documents Checklist Table
| Document | Purpose |
|---|---|
| Aadhaar/PAN | ID |
| Udyam Certificate | MSME Registration |
| Project Report | Business Plan |
| Bank Statements | Financials |
| Address Proof | Location |
Link with Current Schemes
Replaced by PMMY (Mudra up to ₹10 lakh), Stand-Up India (up to ₹1 crore for women), or SIDBI MSME loans with women priority.
Participating Banks
SBI, PNB, other public banks.
Benefits for Women Entrepreneurs
Self-reliance, income generation.
Challenges and Tips
Discontinued status. Tips: Use Mudra portal. Prepare plan.
Risk Management
Repay timely. Insure business.
Costs and Earnings
Loan ₹5-10 lakh. Earnings vary, e.g., tailoring ₹30,000/month.
Cost Breakdown Table
| Item | Cost |
|---|---|
| Interest | 8-10% |
| Own Contribution | Low |
Success Stories
Women started boutiques, food units with scheme.
Future in 2026
More focus on women via Mudra/Stand-Up. Digital growth.
Conclusion
Mahila Udyam Nidhi inspired women business. Use current schemes.
FAQ Section
What is Mahila Udyam Nidhi Yojana?
SIDBI scheme for women loans.
Loan Amount?
Up to ₹10 lakh.
Status in 2026?
Discontinued; alternatives available.
Interest Rates?
Concessional 8-10%.
Eligibility?
Women entrepreneurs.
How to Apply?
Through banks/portals.
Collateral?
Often none.
Alternatives?
Mudra, Stand-Up India.
Documents?
Aadhaar, project report.
Benefits?
Soft loans for MSMEs.
FAQ Table
| Question | Answer |
|---|---|
| Loan Amount | ₹10 Lakh |
| Status | Discontinued |
| Interest | 8-10% |
| Eligibility | Women |
| Apply | Banks |
| Collateral | No |
| Alternatives | Mudra |
| Documents | Aadhaar |
| Benefits | Empowerment |
| Current | Active Schemes |