1. The Scheme : In recognition of the need that women entrepreneurs, as a separate target group, deserve special attention, a new scheme viz.Mahila Udayam Nidhi Scheme was introduced for providing equity type assistance to women entrepreneurs setting up / expanding industrial projects with project cost upto Rs.10 lakhs in the SSI sector.

2. Eligibility : All new projects in tiny and small scale sectors for manufacture, preservation or processing of goods.Existing tiny and small scale industrial units and service enterprises (including those which have availed of MUN assistance earlier) undertaking expansion, modernisation, technology upgradation and diversification.
Sick units in tiny and small scale sectors including service enterprises which are considered potentially viable All Industrial activities and service activities (except Road Transport operators) in the SSI sector.Projects which avail of any margin money or Seed / Special Capital assistance under the schemes of Central / State Governments, State financial Corporations and other State Level Institutions or Banks (except state investment subsidy) are not eligible for assistance under the scheme.

3. Project Cost : The project cost (including Margin money for Working Capital) should not exceed Rs.10 lakhs in case of new projects. In the case of existing units and service enterprises the outlay on expansion / modernisation / Technology upgradation or diversification or rehabilitation should not exceed Rs.10 lakhs per project.

4. Soft Loan: Soft loan to the extent of 25% of Project Cost subject to a maximum of Rs.2.50 lakhs will be considered.

5. Promoters' Contribution: Minimum Promoters' Contribution shall be 10% of the
project cost.

5. Debt-Equity Ratio: Debt-equity ratio shall be 1.857 : 1.00

6. Rate of Interest : A nominal rate of interest (by way of service charge) of 1% per annum is payable on the soft loan component. The rate of interest will be subject to review during the currency of the seed capital assistance. In case, the financial position and the profitability of the unit so warrant a higher rate of service charge, but not exceeding the normal rate of interest on term loan, will be applied. In respect of term loan, the interest will be as the prevailing rates.