Under the Pradhan Mantri Mudra Yojana scheme, Govt has introduced a unique loan scheme for women entrepreneurs, called Mudra Yojana scheme for women. In this scheme, which is also called Mahila Udhyami Yojana, loans up to Rs 10 lakh are provided to women entrepreneurs, without any collateral, and with low interest with flexible repayment tenure. The loans under the Mudra scheme (for both men and women) are provided by various banks, financial institutions and micro-finance institutions, which get the funding from a special pubic sector bank called Micro Units Development and Refinance Agency Bank. Government has informed all banks, and NBFC, MFIs to reduce interest while allocating Mudra loans for women. Hence, women entrepreneurs can pay less interest and avail of other benefits under this scheme.

Mudra Loan for Women Eligibility

Under Mudra loan for women, these are the eligibility criteria:

• Women entrepreneurs who are heading and managing any manufacturing or production business are eligible to get loans up to Rs 10 lakh, without any collateral. Examples being artisans, weavers, craftsmen and more
• Other small and micro-scale businesses which qualify for Mudra loans for women are phone repairing, auto-repairing, tailoring, photocopying, servicing centers for electronics appliances, spa, beauty parlor services.
• Loans under Mudra Yojana Scheme for women can be used to set up a new business, expand an existing business or modernize existing business with the latest technology and tools.
• The age limit for women who can avail of loans under the Mudra scheme is 65 years. The minimum age requirement is 18 years

Preferences Given for Loan Approval Under Mudra Scheme for Women:

• Group or Cluster of artisans, instead of individual artisans
• Self-help groups formed by artisans and weavers, craftsmen
• Artisans who are registered under Development Commission (Handicrafts)
• Women entrepreneurs who have trained themselves at R-SETIS or any other prescribed institution.
• Women or men recipients of any other Govt schemes are not eligible for Mudra loan

Other Terms and Conditions for Mudra Yojana Scheme for Women

• There is no requirement of collateral, for availing Mudra loan for women
• United Bank of India provides the loan for women under Mudra scheme
• Loans can be only allocated for non-corporate, non-farming and non-agriculture based business, which is headed and run by women entrepreneurs
• Total tenure for loan repayment for women is a maximum of 5 years, and a minimum of 3 years
• The applicant shouldn’t have defaulted on any previous loan
• There should be no criminal record against the applicant
• In the case of salaried employees, the last six months salary slip is required
• In the case of existing entrepreneurs, ITR filings are required
• Women who own more than 50% stake in any business are also eligible for Mudra loan
• A written business plan is required to be submitted, for availing business loan for women, under the Mudra scheme
• For identity proof, Aadhaar card, voter card, PAN card or driving license is valid
• For address proof, telephone bill, electricity bill, water/gas bill can be used
• Proof of business is required which can be shown via a business registration certificate

Do you wish to know more about the Mudra loan for women and how to apply for it? Do you want to know all other types of business loans for women in India, besides the Mudra loan? Or if you wish to know about Women Entrepreneurial Opportunities.

UDYAM SAKHI HELPLINE: 1800 212 6844 can help you, or UPICON will help you right away!