Scheme For Women Entrepreneurs Mahila Udyam Nidhi (MUN)
By Pondicherry Industrial Promotion Development and Investment Corporation (PIPDIC)
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Quick Answer
Term loan and seed capital up to ₹9 lakh for women entrepreneurs setting up a new Small Scale Industrial unit or service activity in Puducherry.
- Funding amount
- Up to ₹9L
- Funding type
- Debt
- Application deadline
- Rolling
- Location
- Puducherry
About this loan
Women entrepreneurs in Puducherry setting up a new Small Scale Industrial (SSI) unit or service activity can get a term loan and seed capital of up to ₹9,00,000/- for a ₹10,00,000/- project. The Term Loan covers 65% of the project cost and the Seed Capital 25%. The Pondicherry Industrial Promotion Development and Investment Corporation Limited (PIPDIC) runs it with the Department of Industries & Commerce, Puducherry.
Interest is 0.5% lower than normal rates, and investigation fees get a 50% concession. The Term Loan is repaid over 6 to 8 years, with a moratorium of 1 to 2 years. Seed Capital is repaid over 10 years. For women entrepreneurs, the value of immovable property offered as security is fixed at 50% of the loan amount.
Eligibility
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Grant providers
Provider
Pondicherry Industrial Promotion Development and Investment Corporation (PIPDIC)Puducherry · Puducherry · India
Benefits & Funding
- Amount
- Up to ₹9L
- Fund type
- Debt
- Repayment
- Repayable
What You Get
The Mahila Udyam Nidhi (MUN) scheme offers substantial financial assistance for projects up to a maximum cost of ₹10,00,000/-. This includes a Term Loan component covering 65% of the project cost and a Seed Capital component covering 25% of the project cost, making the total financial assistance up to ₹9,00,000/- for a ₹10 lakh project. Beyond the direct funding, applicants benefit from a concessional interest rate, which is 0.5% lower than the normal rates, along with a significant 50% concession on investigation fees, reducing the initial financial burden. The repayment period for the Term Loan is flexible, ranging from 6 to 8 years, and includes a generous moratorium period of 1 to 2 years, providing breathing room during the initial operational phase. The Seed Capital component has a longer repayment period of 10 years. Additionally, there are relaxed collateral security requirements, with the value of immovable property offered as security fixed at 50% of the loan amount for women entrepreneurs, further easing access to finance.
- Disbursement
- Milestone Based
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications submitted through the online portal are initially screened for eligibility and completeness by the Pondicherry Industrial Promotion Development and Investment Corporation Limited (PIPDIC). This stage involves verifying the applicant's status as a woman entrepreneur, the nature of the proposed Small Scale Industrial unit or service activity, and adherence to the maximum project cost. Following this initial review, eligible applications typically undergo a detailed evaluation by a committee comprising experts from PIPDIC and the Department of Industries & Commerce, Puducherry. This evaluation assesses the project's viability, financial projections, and the entrepreneur's capability. Shortlisted applicants may be invited for further discussions or interviews to present their business plans and address any queries. The final selection is based on the comprehensive assessment of all submitted documentation and interaction.
Application Process
- 1
Register & Profile
Create a new customer account on the PIPDIC website and complete your profile.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 3
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 4
Submit on the official portal
Use the official application link and verify all details before final submission.
- 5
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the maximum project cost supported by the Mahila Udyam Nidhi (MUN) scheme?
The scheme supports projects with a maximum cost of up to ₹10,00,000/-. The total financial assistance provided (Term Loan + Seed Capital) can cover up to 90% of this project cost.
What is the interest rate offered under this scheme?
Applicants receive a concessional rate of interest, which is 0.5% less than the normal interest rate charged for loans by PIPDIC.
Is collateral security required for the loan?
Yes, collateral security in the form of immovable property is required. However, for women entrepreneurs, the value of the immovable property to be offered as security is reduced and fixed at 50% of the loan amount.
What are the repayment terms for the loan components?
The Term Loan has a repayment period of 6 to 8 years, including a moratorium period of 1 to 2 years. The Seed Capital component has a repayment period of 10 years.
Who is eligible to apply for the Mahila Udyam Nidhi (MUN) scheme?
The scheme is open to women entrepreneurs who are setting up a new Small Scale Industrial unit or service activity in Puducherry, with a proposed project cost not exceeding ₹10,00,000/-.
Can entities other than proprietorships apply, such as private limited companies or LLPs?
The scheme refers to 'Small Scale Industrial unit or service activity' and 'woman entrepreneur'. While not explicitly listing legal entities, it generally includes incorporated and unincorporated businesses like private limited companies, LLPs, OPCs, partnerships, and proprietorships that can qualify as SSI units, as long as they are led by a woman.
Is a co-financing contribution required from the promoter?
Yes, the promoter's contribution required is 10% of the total project cost.
Sources
Data on this page is compiled from official program and provider references.
