United Mahila Udhyami Yojana
To provide hassle free financial assistance to young and budding women entrepreneurs, the government has launched a new scheme called ‘United Mahila Udhyami Yojana’. The scheme is centralized to encourage and empower women entrepreneurs.
The scheme shall offer these entrepreneurs capital at liberal and concessional terms for undertaking production, manufacturing or service related economic activities under Micro Enterprise Sector.
Eligibility for Mahila Udhyami Yojana
- Women entrepreneur(s)/ enterprise (where women entrepreneurs hold not less than 50 % of financial holding) involved in production and manufacturing process like artisans, craftsman, weavers, potter, carpenter etc.
- Women entrepreneur/enterprise (where women entrepreneurs hold not less than 50 % of financial holding) to set up a new unit or for modernization/expansion/renovation of existing for providing various services.
Under this scheme, priority shall be given to the following Women Entrepreneurs:
- Entrepreneurs trained in R-SETIs or any other permitted training institute
- Artisans registered with Development Commissioner (Handicrafts)
- Group of artisans
- Artisans who have joined to start self-help groups
Details of Loan under Mahila Udhyami Yojana
- Limit up to Rs. 25,000/- : Nil
- Limit above Rs. 25,000 and up to Rs.5 lac: 10%
- Loan above Rs. 5 lac: 15%
MSME Act Eligibility Criteria
Micro enterprises under MSME Act are eligible under this scheme. Microenterprise under Priority Sector that implies:
- Investment in plant and machinery should not exceed Rs. 25 lac in case of production and manufacturing activity
- Investment in equipment should not exceed Rs.10 lac in case of service activity as per MSMED Act 2006.
Repayment of Loan
- Under this scheme Loan approved is provided for a period of 3 to 5 years, with repayment fixed on monthly installments.
- In the case of a working capital facility, the loan is approved for 12 months subject to appraisal and renewal every year.
- Under this scheme, no collateral security is required to avail loans
- The loan would be covered under the CGTMSE coverage
- Charge would be created on assets created out of bank loan
- Personal guarantee of supporter would be taken
This is a wonderful scheme brought by the central government to empower and strengthen women entrepreneurs to show their talents as businesswomen.