SFWEMUN

Scheme For Women Entrepreneurs Mahila Udyam Nidhi (MUN)

The scheme aims to meet the equity gap for new Small Scale Industrial units and service activities promoted by women entrepreneurs. It offers Term Loans and Seed Capital for projects costing up to ₹10,00,000/-.

State Cash

States / UT: Puducherry

Nodal department: Industries and Commerce Department, Puducherry

Scheme for: Individual

Scheme profile

DBT (direct benefit transfer): No

Categories: Business & Entrepreneurship

Sub-categories: Setting up / start-up / entrepreneurship, Credit Linked Subsidy, Loan

Target beneficiaries: Individual

Tags: Women, Entrepreneur, Loan, Capital, Equity, Finance

Details

The scheme "Scheme For Women Entrepreneurs Mahila Udyam Nidhi (MUN)" was launched by the Pondicherry Industrial Promotion Development and Investment Corporation Limited (PIPDIC), Department of Industries & Commerce, Puducherry. The scheme aims to provide a Term Loan covering 65% of the project cost and Seed Capital covering 25% of the project cost, structured around a maximum project cost of up to ₹10,00,000/-. The applicant must be a woman entrepreneur setting up a new Small Scale Industrial unit or service activity. The applications for this scheme are accepted online.

Benefits

  • - The scheme provides financial assistance for projects with a cost up to ₹10,00,000/-
  • The assistance includes a Term Loan component covering 65% of the project cost
  • The assistance includes a Seed Capital component covering 25% of the project cost
  • The applicant receives a concessional rate of interest that is 0.5% less than the normal interest rate charged for loans
  • The applicant receives a 50% concession on the investigation fee
  • The calculated Debt-Equity Ratio (D.E.R) for the project is 1.857:1. Repayment and Term Details
  • The repayment period for the Term Loan is 6 to 8 years, which includes a moratorium period of 1 to 2 years
  • The repayment period for the Seed Capital is 10 years
  • The Promoter& 39;s contribution required is 10% of the project cost. Conditions
  • Collateral security in the form of immovable property must be offered, in addition to the mortgage or hypothecation of proposed fixed assets
  • For units promoted by women entrepreneurs, the value of the immovable property to be offered as security is reduced and fixed at 50% of the loan amount
  • The valuation of the properties offered as security must be assessed by engaging Chartered Engineers/valuers from the approved panel of the Corporation
  • The scheme provides financial assistance for projects with a cost up to ₹10,00,000/-.
  • The assistance includes a Term Loan component covering 65% of the project cost.
  • The assistance includes a Seed Capital component covering 25% of the project cost.
  • The applicant receives a concessional rate of interest that is 0.5% less than the normal interest rate charged for loans.
  • The applicant receives a 50% concession on the investigation fee.
  • The calculated Debt-Equity Ratio (D.E.R) for the project is 1.857:1.
Repayment and Term Details
  • The repayment period for the Term Loan is 6 to 8 years, which includes a moratorium period of 1 to 2 years.
  • The repayment period for the Seed Capital is 10 years.
  • The Promoter's contribution required is 10% of the project cost.
Conditions
  • Collateral security in the form of immovable property must be offered, in addition to the mortgage or hypothecation of proposed fixed assets.
  • For units promoted by women entrepreneurs, the value of the immovable property to be offered as security is reduced and fixed at 50% of the loan amount.
  • The valuation of the properties offered as security must be assessed by engaging Chartered Engineers/valuers from the approved panel of the Corporation.

Eligibility

  • The applicant must be a woman entrepreneur.
  • The applicant must be setting up a new Small Scale Industrial unit.
  • The applicant must be setting up a service activity.
  • The applicant must propose a project with a maximum cost of up to ₹10,00,000/-.

*The applicant is eligible for a concessional rate of interest that is 0.5% less than the normal rate.
*The applicant is eligible for a 50% concession on the investigation fee.
*The collateral security requirement is relaxed, mandating the value of the property offered to be fixed at 50% of the loan amount.

Exclusions



Application Process

Online

User Manual: https://pipdic.in/uploads/PIPDIC_docs/user_manual.pdf
How to Apply: https://pipdic.in/how_to_apply
Applicant Login: https://pipdic.in/customer_login
Application Link: https://pipdic.in/forms
Grievance Form: https://pipdic.in/grievance_form

Registration Process
Step 1:**** Registration and Profile Creation

Visit the PIPDIC website. Click "Login". Click the “New customer” link under the “Login” menu, enter a username, email-id, password, and captcha, and then click the "Register" button.

Step 2:**** Email Verification and Login
  • Use the registered email-id to log in. An OTP is sent to the registered email address.
  • The applicant is then required to enter the OTP and click "Login" to access to the customer dashboard.
Step 3:**** Profile Update
  • Upon successful login, the customer needs to update their profile by accessing the "Edit Profile" option (top right corner of the dashboard).
  • The applicant must provide all required details. Click "Submit".

Application Process (Loan Application)
Step 1:**** Accessing the Loan Application Form
  • To initiate the loan application process, the applicant must navigate from the customer dashboard by clicking on the "Applications" tab.
Step 2:**** Reviewing Checklist and Accepting Terms
  • A pop-up window displaying a checklist of General Terms and Conditions, interest rate structure, investigation fees, and collateral security norms will appear for review.
  • Carefully read this checklist, confirm that all necessary documents have been gathered as requested, and click the “I Agree” button to proceed to the application form.
Step 3:**** Filling the Loan Application Form

Fill the multi-step application form, providing appropriate details in all mandatory fields across the required steps.

Step 4:**** Declaration and Submission

The applicant must carefully read and agree to the comprehensive declaration provided within the application form (covering confirmation of true information, absence of unauthorized borrowing arrangements, and consent to verification) before finally ticking the "I agree to terms" checkbox and clicking the final "Submit" button for the main application form.

Step 5:**** Promoter Bio-Data and Document Upload

The system will redirect the applicant to enter the Biodata of the Promoter, Partner, or Director, which is typically a multi-step process. The necessary KYC and supporting documents must be uploaded by clicking the "Choose File" button next to each field.

Step 6:**** Application Fees Payment

  • Once the entire application and bio-data submission is complete, pay the applicable application fee.

  • If selecting online payment, the system automatically redirects the applicant to the payment summary page, where they verify their details and make the payment.

Step 7:**** Receiving and Saving Payment Receipt
  • Upon successful payment, the user is redirected back to PIPDIC website, where a receipt for the application fee paid is generated.
  • The applicant can print this receipt or save it to their computer as a PDF for future reference.

Application Status Tracking and Support

The customer can monitor the status of their submitted application (which will initially show a status like 'UNDER REVIEW') by clicking the "View My application" link on the dashboard and selecting the relevant loan application in the drop-down menu.

Application Fees
  • For loans up to ₹25,00,000/-, the application fee is ₹100/-.
  • For loans above ₹25,00,000/-, the application fee is ₹200/-.
Grievance Redressal / Help & Support
  • The applicant can contact the Managing Director, Pondicherry Industrial Promotion Development and Investment Corporation Limited at No.60, Romain Rolland Street, Puducherry 605001.
  • The office phone number is 0413-2334361.
  • The email address for contact is info@pipdic.com.
  • The General Manager (Administration) can be contacted via mobile at 9894653835.

Clarifications

Additional points from the scheme information published on myScheme (not legal advice).

What percentage of the overall project outlay is provided to applicants specifically in the form of Seed Capital under this entrepreneurial support scheme?
The financial aid structure includes a Seed Capital component that is fixed at covering 25% of the total project cost. <br>
Regarding collateral security requirements, what value of immovable property must a woman entrepreneur offer relative to the total loan amount sanctioned?
For projects promoted by women entrepreneurs, the value of the immovable property offered as collateral security is fixed at 50% of the loan amount. <br>
What specific types of entities and activities are eligible to receive financial assistance under this particular equity support program?
The scheme is exclusively available for all new Small Scale Industrial units and service activities that are established by a woman entrepreneur. <br>
What is the stipulated maximum repayment tenure specifically set for the Seed Capital portion of the financing provided by the Corporation?
The maximum repayment period allowed for the Seed Capital component of the financial assistance is set at 10 years. <br>
What is the maximum ceiling established for the overall cost of the project that can be considered for assistance through this financing mechanism?
The maximum overall project cost eligible to receive support under this scheme is limited to up to ₹10,000,00/-. <br>
What is the mandatory minimum financial contribution required from the promoter of the enterprise towards the total cost of the approved project?
The applicant must provide a Promoter’s contribution which is mandated to be 10% of the total project cost. <br>
Is there an initial period of relaxation or a moratorium included before the required repayment schedule for the Term Loan officially begins?
Yes, the repayment period of the Term Loan includes a moratorium period that can extend from 1 to 2 years. <br>
Do applicants belonging to the women entrepreneur category receive any reduction regarding the standard investigation fee levied during the application process?
Yes, women entrepreneurs are granted a substantial 50% concession on the investigation fee otherwise applicable to the loan amount. <br>
What is the calculated standard rate charged for the investigation fee on term loan applications submitted for amounts up to ₹25,00,000/-?
The standard investigation fee is calculated at 0.50% of the term loan applied, plus the applicable service tax charges. <br>
What is the base interest rate per annum utilized by the Pondicherry Industrial Promotion Development and Investment Corporation for loans up to ₹25,00,000/-?
The normal base interest rate per annum charged by the Pondicherry Industrial Promotion Development and Investment Corporation for loans up to ₹25,00,000/- is 10%. <br>
What is the maximum duration provided for the repayment of the Term Loan component disbursed to successful applicants of this program?
The Term Loan repayment period ranges from 6 to 8 years, depending upon the implementation requirements of the project. <br>
How much of the total project expenditure can be covered by the Term Loan component provided through this specific financial assistance package?
The Term Loan component is designed to cover 65% of the total project cost, which constitutes a significant portion of the required finance. <br>
Are women entrepreneurs eligible to receive a reduced rate compared to the standard interest rate generally charged for comparable loans?
Yes, women entrepreneurs are eligible for a concessional rate of interest which is 0.5% less than the normal interest rate applied to loans. <br>
Could you please specify the calculated Debt-Equity Ratio (D.E.R) that is mandated for projects applying for funding through this women entrepreneurs initiative?
The required Debt-Equity Ratio (D.E.R) that must be maintained for projects financed under this scheme is precisely 1.857:1. <br>

References

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Documents Required for Government Schemes

Most government schemes require basic documents for verification. While the exact requirements vary, common documents include:

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  • Income Certificate
  • Caste Certificate (if applicable)
  • Residence Proof
  • Bank Account Details
  • Educational Certificates (for student schemes)

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