Udyogini Scheme for Women in India: Eligibility & How to Apply Online

Supporting women is equal to empowering progress, or so the Udyogini scheme upholds. The scheme was launched in 1997-98 and further amended in 2004-05. It now offers subsidies on loans from the Karnataka State Women's Development Corporation, enabling women to start their own businesses. From bookbinding and jam-making to saree embroidery, women get to explore their potential on their own terms.

With formal credit channels, women can conveniently escape the private lenders' high interest rates and thrive as self-employed individuals. Learn more about the Udyogini scheme in this blog!

Key Details of the Udyogini Business Loan Scheme

The ultimate goal of the Udyogini scheme is to help women become self-employed & self-sufficient so they are empowered to live a life of their own. The scheme aims to help women achieve self‑reliance and economic independence through self‑employment in trade and service activities. Here are the key details of the Udyogini Scheme:

1. Date of Launch & Amendment: Launched in 1997-1998; amended in 2004-2005.

2. Objective of the Scheme: Assisting women in gaining self-reliance & economic independence by achieving self-employment in trade/service sectors; opening up formal credit channels, minimising dependence on private lenders that quote high interest rates.

3. Loan Subsidy: Extends subsidy on Karnataka State Women's Development Corporation-sanctioned loans.

4. Disbursal of Loans: Loans disbursed via commercial banks, district cooperative banks & Regional Rural Banks (RRBs).

5. Activities Supported: Profitable business activities, including

• Printing & clothes dyeing

• Bookbinding & notebooks manufacturing

• Papad manufacture

• Chalk & crayon manufacture

• Saree & embroidery work

• Jam, jelly & pickles manufacturing

• Woollen weaving, & others

What is the Udyogini Scheme Eligibility Criteria?

To qualify for the Udyogini scheme, the applicant must be a woman who is a permanent resident of Karnataka, aged between 18 and 55 years. Family income should be below ₹1,50,000.

Here are the eligibility requirements for the Udyogini Scheme highlighted for your reference:

• It is a women-only scheme.

• Family income should be less than ₹1,50,000/- for women belonging to general/special categories; less than ₹2,00,000 for SC/ST women; limits are not set on family income for widowed/disabled women.

• The applicant's age should be between 18 and 55 years for all categories.

• Applicants must be permanent residents of Karnataka.

• The applicant must not have defaulted on any loan with a financial institution in the past.

Conditions for Reservation/Preference/Priority include:

• Preference will be granted to the economically disadvantaged, widowed or physically challenged women. 

• Further, candidates who have the necessary skill development training/vocational training as conducted by any KSWDC/other department will be given preference. 

• Around 10% of the allocated target is earmarked in order to grant benefits to the applicants among World Bank-assisted Swashakthi/Stree Shakthi group members.

Also Read: Mudra Loans: A Complete Guide to the Pradhan Mantri Mudra Yojana Scheme

Procedure to Apply for the Udyogini Scheme Online

The CDPO examines the applications they receive and forwards them to the Selection Committee post-spot verification. Next, the selection committee analyses and forwards the same to the banks, which disburses the loan.

All you have to do is:

Step 1: Visit the official websites of banks that offer loans under the Udyogini scheme. Or, download the form from the website of the corporation.

Step 2: Fill out the application with the necessary details. 

The bank or KSFC officials proceed to cross-check the documents & the project proposal after receiving the verified application from the Selection Committee.

They process the loan application next. Banks send a request letter to the Corporation for the subsidy release, and the bank releases the loan amount. After the loan application is approved, the loan amount is disbursed to the applicant's bank account/directly to the supplier's account.

Procedure to Apply for the Udyogini Scheme Offline

You can get the application forms at the offices of the Deputy Director/CDPO offline.

Step 1: Visit the nearest bank with the necessary documents in hand.

Step 2: Fill out the application form before moving forward with bank formalities. 

Step 3: Submit the filled-out application form alongside the documents to the nearest bank or KSFC branch.

The bank/KSFC officials check the authenticity of the documents & the project proposal. After that, the loan application is processed. Banks send over a request letter to the Corporation for the subsidy release. The bank proceeds to release the loan amount. After the loan application is approved, the loan amount is disbursed to the applicant's bank account/directly to the supplier's account.

Also Read: What are Various Options to Avail of Business Loans in India?

To Conclude

The Udyogini scheme is a major initiative in support of the empowerment of women who dream of doing business in Karnataka. By providing them with subsidies on loans and formal credit channels, the scheme paves the way for women to become self-reliant and independent. 

If you're on the lookout for other unsecured business financing options with simple eligibility, minimal documentation and flexible loan terms, make sure to check out Poonawalla Fincorp’s Business Loan of up to 1 Crore. Apply with a 100% online process and and finance your business dreams effortlessly.

FAQs

What are the Udyogini scheme benefits?

For SC/ST women, the unit cost ranges between ₹1,00,000 - ₹3,00,000 with a 50% subsidy on the loan amount (family income limit of ₹2,00,000/year). For special/general category women, the maximum unit cost is ₹3,00,000 with a 30% subsidy or up to ₹90,000 (includes EDP training for selected beneficiaries).

What is the maximum amount I can loan under the Udyogini Scheme?

Under the Udyogini Scheme, eligible women can avail bank‑sanctioned loans typically ranging from ₹1,00,000 to ₹3,00,000, subject to category and project appraisal.

What is the Udyogini scheme interest rate?

The Udyogini Scheme does not prescribe a fixed interest rate; the final rate is decided by the lending bank, so applicants should confirm the prevailing rate at the branch.

What is the repayment period for Udyogini Scheme loans?

Repayment tenure and any moratorium under the Udyogini Scheme are not defined by KSWDC and may vary by the lending bank; please confirm at the time of application.

Are women entrepreneurs based in urban areas eligible to apply for the Udyogini Scheme?

Yes, women entrepreneurs based in urban areas are also eligible to apply for loans under the Udyogini scheme.