Cent Kalyani vs Mahila Udyam Nidhi, which women’s business loan scheme is better?

Two women’s business loans worth asking for by name

When you walk into a bank and ask for a “business loan”, you get a generic product. When you ask for a named women’s scheme, you often get better terms: lower or no collateral, concessional interest, a friendlier margin. Two of the most useful to know are the Cent Kalyani scheme from Central Bank of India and the Mahila Udyam Nidhi scheme linked to SIDBI. They serve different sizes of ambition, so the right one depends on how much you need and what you are building.

Cent Kalyani scheme (Central Bank of India)

The Cent Kalyani scheme is Central Bank of India’s dedicated product for women entrepreneurs, and it goes big: up to ₹1 crore. It is meant for women running micro, small or medium enterprises in manufacturing, services or the professions, and it deliberately excludes only retail trade and self-help groups.

• Loan amount: up to ₹1 crore.
• Eligibility: women running new or existing MSMEs in manufacturing, services or a profession (doctors, chartered accountants, engineers, trained craftswomen). Retail trade and SHGs are excluded.
• Security: no collateral or third-party guarantee, the loan is covered under CGTMSE.
• Margin: around 20%.
• Repayment: term loans up to 84 months, including a moratorium of about 6 months.
• Interest: linked to the bank’s MCLR, with a small spread (roughly MCLR + 0.25% up to ₹10 lakh).

In short, Cent Kalyani is the one to ask for when you need a larger, collateral-free loan for a growing enterprise, and you bank with, or are willing to bank with, Central Bank of India.

Mahila Udyam Nidhi scheme

The Mahila Udyam Nidhi scheme is a soft-loan product set up under SIDBI’s guidance and first offered through Punjab National Bank, aimed at helping women set up small-scale and service units. It is smaller than Cent Kalyani but unusually patient on repayment.

• Loan amount: up to ₹10 lakh.
• Eligibility: women entrepreneurs holding at least a 51% stake in a small-scale industry, tiny unit or service enterprise.
• Repayment: a long runway of up to 10 years, including a moratorium of up to 5 years.
• Charges: a nominal service charge (around 1% a year), sometimes waived, with concessional interest.

Mahila Udyam Nidhi suits a smaller, first proper venture where a long repayment window and a generous moratorium matter more than a large cheque, room to find your feet before the instalments bite.

Cent Kalyani vs Mahila Udyam Nidhi: side by side

Which one should you choose?

Match the scheme to the size of the leap. If you need a bigger, collateral-free loan for an enterprise that is already moving, Cent Kalyani’s ₹1 crore ceiling and CGTMSE cover make it the stronger pick. If you are setting up a smaller first unit and want the longest possible breathing room before repayment, Mahila Udyam Nidhi’s five-year moratorium is hard to beat.

And remember these are two options among many. Before you commit, compare them against Mudra, Stand-Up India and the PMEGP subsidy for women in our full guide to government schemes for women entrepreneurs, or let the Funding Match tool shortlist what you qualify for. For the broader lay of the land, see business loans for women in India.