Udyogini Scheme

The Government of Karnataka launched the Udyogini scheme to empower women in entrepreneurship and aid them in contributing to the economy. The scheme encourages the establishment of small and micro enterprises. It helps provide financial independence to women from all sections of society.

Started in 1997-98, this initiative helped women entrepreneurs become self-reliant. The scheme offers loans of up to ₹3 Lakhs to women whose family income is less than ₹1.5 Lakhs. No collateral is required for women business owners to access funding under this scheme.

The Udyogini Yojana offers collateral-free, interest-free loans to women entrepreneurs in Karnataka. It supports women from underprivileged regions in starting their businesses. This helps them become self-reliant. The key details of the Udyogini Loan Scheme are as follows:

The Udyogini loan benefits women entrepreneurs across 88 sectors. Additionally, the government provides subsidies on this loan.

• This scheme supports women in 88 small-scale industries, such as papad making, catering, libraries, and canteens

• Women entrepreneurs can receive a loan of up to ₹3 Lakhs under this scheme

• The government offers a subsidy of around 30% on these loans

• The scheme includes training for skill development for women

• Women in the agricultural sector can also access these loans

Under the Udyogini Yojana, eligible women seeking this loan are offered a subsidy along with an interest rate of 10-12%. The interest rates are as follows:

• Dalit women, disabled women, and widows can receive loans up to ₹3 Lakhs with no interest

• Eligible women applicants can receive a 30% subsidy on loans, depending on their family's annual income 

Note that the interest rates may change and are at the discretion of the Government of Karnataka and the respective banks or NBFCs.

The Udyogini Yojana scheme supports approximately 88 small-scale industries. These include fisheries, bakeries, libraries, tailoring shops, groceries, and more. Following are the Udyogini scheme details for businesses it supports:

• Agarbatti Manufacturing

• Audio and Video Cassette Parlour

• Bakeries

• Banana Tender Leaf

• Bangles

• Beauty Parlour

• Bedsheet and Towel Manufacturing

• Book Binding and Note Books Manufacturing

• Bottle Cap Manufacturing

• Cane and Bamboo Articles Manufacturing

• Canteen & Catering

• Chalk Crayon Manufacturing

• Chappal Manufacturing

• Cleaning Powder

• Clinic

• Coffee and Tea Powder

• Condiments

• Corrugated Box Manufacturing

• Cotton Thread Manufacturing

• Crèche

• Cut Piece Cloth Trade

• Dairy and Poultry Related Trade

• Diagnostic Lab

• Dry Cleaning

• Dry Fish Trade

• Eat-Outs

• Edible Oil Shop

• Energy Food

• Fair-Price Shop

• Fax Paper Manufacturing

• Fish Stalls

• Flour Mills

• Flower Shops

• Footwear Manufacturing

• Fuel Wood

• Gift Articles

• Gym Centre

• Handicrafts Manufacturing

• Household Articles Retail

• Ice Cream Parlour

• Ink Manufacture

• Jam, Jelly, and Pickles Manufacturing

• Job Typing and Photocopying Service

• Jute Carpet Manufacturing

• Leaf Cups Manufacturing

• Library

• Mat Weaving

• Match Box Manufacturing

• Milk Booth

• Mutton Stalls

• Newspaper, Weekly, and Monthly Magazine Vending

• Nylon Button Manufacturing

• Old Paper Marts

• Pan and Cigarette Shop

• Pan Leaf or Chewing Leaf Shop

• Papad Making

• Phenyl and Naphthalene Ball Manufacturing

• Photo Studio

• Plastic Articles Trade

• Pottery

• Printing and Dyeing of Clothes

• Quilt and Bed Manufacturing

• Radio and TV Servicing Stations

• Ragi Powder Shop

• Readymade Garments Trade

• Real Estate Agency

• Ribbon Making​​

• Sari and Embroidery Works

• Security Service

• Shikakai Powder Manufacturing

• Shops and Establishments

• Silk Thread Manufacturing

• Silk Weaving

• Silk Worm Rearing

• Soap Oil, Soap Powder, and Detergent Cake Manufacturing

• Stationery Shop

• STD Booths

• Sweets Shop

• Tailoring

• Tea Stall

• Tender Coconut

• Travel Agency

• Tutorials

• Typing Institute

• Vegetable and Fruit Vending

• Vermicelli Manufacturing

• Wet Grinding

• Woollen Garments Manufacturing

This loan is for women entrepreneurs seeking financial support. It is available to those with a family income under ₹1.5 Lakhs. Applicants must be between 18 and 55 years of age. The eligibility criteria for this loan include:

• This scheme is exclusively for women. Women who wish to start or expand their businesses are eligible for this loan

• A good credit history is required, with no defaults on previous loans

• Women entrepreneurs need to have a stable income source and the ability to repay the loan

• For women in the general category, the family income must be less than ₹1.5 Lakhs widows and disabled women have no family income limit

• The age limit for women entrepreneurs is between 18 and 55 years

• The applicant needs to be a citizen of India

The documents required for women entrepreneurs to apply for this loan include identity proof, income proof, and address proof. The detailed list of documents is as follows:

• Passport-size photographs, along with the completed application form

• Aadhar card, ration card, or Below Poverty Line (BPL) card

• Birth certificate, Aadhar card, etc., as identity proof

• An income certificate, a photocopy of the bank passbook with details such as bank name, branch, IFSC, account number, and MICR codes as income proof

• Caste certificate for eligible applicants

• Any additional documents as specified

You can apply for the Udyogini loan scheme both online and offline, either through the official website or by visiting a bank branch. Here are the steps to apply for this scheme. 

Offline Method

1. Visit the nearest bank branch offering loans under the Udyogini scheme with all the required documents

2. Complete the application form and attach the necessary documents

3. Submit the form to the bank officials, who will verify your loan request and documents

4. Once approved, they will send a request letter to release the subsidy to the corporation

5. After the formalities are completed, the loan amount will be transferred to your bank account 

Online Method

1. Visit the bank’s official website offering loans under the Udyogini scheme

2. Download and complete the online application form

3. Attach the necessary documents in digital format, such as identity and income proof

4. Submit the completed form and documents to the lender

5. After verification, your loan will be approved, and the loan amount will be credited to your bank account

This loan scheme was initially introduced for women entrepreneurs in Karnataka. However, it is now available to women entrepreneurs across India. To ease the repayment burden, the government offers a 30% subsidy. The repayment tenure varies across banks, with some offering up to 6 years. 

Women entrepreneurs who are disabled or widowed are exempt from income-limit eligibility. This initiative empowers women in various sectors. It helps them achieve financial independence and contribute to the economy. By supporting women-led businesses, the Udyogini scheme promotes inclusive growth.