Due to covid19 the small scale units gone locked down and the entrepreneur has also gone in loss and unemployment problems facing.
The Modi Govt. and MSME sector are exercising day to night to run all the SSI units to gain the country’s economy again. Govt. has pressure to run the industry anyhow to solve unemployment side by side country economy too.
There are many subsidiary key schemes of MSME under which a no. of industry and service sectors have been set up and running, but the COVID 19 has an effect very poorly and all these unit went locked
Do not get discouraged due to lockdown and corona. The Small Industrial Development Bank of India (SIDBI) has launched the ‘Mahila Udyam Nidhi scheme” to promote women entrepreneurs. Under this scheme, women are given loans at a low-interest rate to set up the business. Under this scheme, women can avail of a loan of a maximum of ten lakh rupees. A loan repayment facility is available in a maximum of 10 years. There will also be a five-year moratorium period. This scheme has been launched keeping in view that this scheme will help the women entrepreneur to start their own enterprise and develop them to grow and expand their interests and skills.
Under this scheme, banks may take one percent annually as a service charge for loans. The special thing is that women do not have to pay any collateral or security to take this loan. SIDBI started this scheme with PNB but now many banks have been added. Under the Mahila Udyam Nidhi venture, women will get security free loans so that they can also provide employment to others. To get the benefit of this loan, there will be some conditions to fulfill by the eligible women, which need attention.
But for the women entrepreneur, this is a piece of better news. Without collateral securities, the SIDBI are providing loan up to Rs.10.00 Lakhs for setting up, expansion of production, improvement in productivity, and packaging systems. The name of this scheme is MAHILA UDYAM NIDHI SCHEME.
HOW CAME IN ACTION THIS MAHILA UDYAM NIDHI SCHEME
Mahila Udyog Nidhi Scheme, first of all, was launched by Punjab National Bank for Women Running Entrepreneurs. This scheme was implemented for women only and later on several banks were providing loans to women entrepreneurs under this scheme on an attractive rate of interest. In this scheme, there is no requirement of collateral security.
By this scheme, the women entrepreneur became capable to start their enterprise and to expand or install new technology for improving their quality of production quantity of production and to improve packaging systems.
Now, this scheme has been taken by the SIDBI under its control and guiding the banks for financing the loan under this scheme to the women entrepreneurs. This loan is for promoting the women entrepreneurs at a concessional rate of interest.
Features of Mahila Udyam Nidhi Scheme are hereunder:-
There should be existing women entrepreneurs.
The maximum project cost should be up to Rs. 10 Lakhs.
Margin money will be taken @25% of the project cost. In the case of the project cost Rs.10 lakhs a margin of Rs. 25% means 2.5 lakhs.
The loan repayment period will be 10 years with a moratorium period of 5 years.
It may be some times to be taken @1% as a service charge.