Udyogini Scheme

The Udyogini Scheme, introduced by the Government of Karnataka in 1997, empowers women by providing financial assistance to help them become self-employed and economically independent. By offering low-interest loans and subsidies for businesses in sectors like trade and services, the scheme creates accessible credit channels, enabling women to avoid high-interest loans from private lenders. Udyogini supports various micro-enterprises, including manufacturing notebooks, jam, pickles, and embroidery, allowing women to establish profitable businesses and actively contribute to the economy.

Here’s an overview of the key features and benefits of the Udyogini Scheme that make it an excellent opportunity for women entrepreneurs:

Loan Amount and Subsidy

The maximum loan amount is ₹50,000 for manufacturing and ₹2,00,000 for service sectors, with subsidies provided based on the applicant's category and income level.

Interest Rate

The Udyogini Scheme offers an affordable interest rate of just 6%, making it easier for women to repay the loan without financial strain.

Repayment Period

Loans under this scheme come with a repayment period of 36 months, which includes a 6-month moratorium period to ease the burden of early repayments.

No Processing Fees

There are no processing fees for loans under the Udyogini Yojana, reducing the upfront costs for women entrepreneurs seeking financial assistance.

Eligibility for Previous Borrowers

Women entrepreneurs who have previously availed loans from other sources are eligible to apply for the Udyogini Scheme, providing them with a chance for better financial support.

Urban and Rural Access

Both women from urban and rural areas are eligible to apply, broadening the reach of this supportive initiative to a wide range of women across Karnataka.

Preference for Vulnerable Groups

Priority is given to extremely poor, widows, physically challenged women, and those who have undergone skill or vocational training, ensuring that the most vulnerable groups are empowered.

Quick Loan Sanctioning

Loans are generally sanctioned within 15 days of completing the application process, offering a quick turnaround for women needing immediate financial support.

Here are the key preferences under the Udyogini Scheme that ensure support is directed towards the most deserving women entrepreneurs:

• Preference is given to extremely poor, destitute women, widows, and those with physical disabilities

• Women who have completed skill development or vocational training through KSWDC or other departments are prioritised

• Approximately 10% of the allocated target is reserved for women from World Bank-assisted Swashakthi or Stree Shakthi groups

Here are the eligibility requirements for the Udyogini Scheme that applicants need to meet:

• Only women are eligible to apply for the Udyogini loan scheme

• Applicants from general and special categories must have a family income of less than ₹1,50,000

• Widowed or disabled women have no family income limit to qualify

• The age of the applicant must be between 18 and 55 years old

• The applicant must be a resident of Karnataka

• Applicants should not have any past loan defaults with financial institutions

The application process for the Udyogini Scheme is simple and can be completed either offline or online, making it accessible for women entrepreneurs across Karnataka. Here’s a step-by-step guide on how to apply for the Udyogini Scheme:

Offline Application Process

Here’s a straightforward guide to help you apply for the Udyogini Scheme through the offline process:

• Visit the Bank and Obtain the Application Form

Visit the nearest bank with the required documents. You can obtain the application form at the bank or from the Deputy Director/CDPO offices.

• Submit the Application and Documents

Complete the application form and submit the necessary documents to your nearest bank or KSFC branch. Once your documents and project details are reviewed, the bank or KSFC will forward a request to the Corporation for subsidy approval.

• Loan Disbursement

Once the loan is approved, the amount will be disbursed either to your bank account or directly to the supplier’s account for equipment and capital expenditure.

Online Application Process

Here’s a simple guide to help you navigate the online application process for the Udyogini Scheme:

• Apply Online on the Bank’s Website

Visit the official website of the banks offering loans under the Udyogini Scheme. Fill out the online application form and submit it. The CDPO will perform spot verification before forwarding the application to the Selection Committee.

• Bank Verification and Loan Release

After the Selection Committee reviews the application, it will be sent to the bank. The bank will verify the documents and project proposal before requesting the subsidy release from the Corporation. Once approved, the loan amount will be disbursed to your account.

Here’s a comparison of various schemes designed to support women entrepreneurs and provide financial assistance:

The Udyogini Scheme is a powerful initiative aimed at empowering women entrepreneurs in Karnataka by providing them with financial support, skill development, and access to business opportunities. By offering low-interest loans, subsidies, and sector-specific assistance, it fosters self-reliance and promotes women’s participation in various industries. This scheme is a key step towards improving economic independence and boosting local entrepreneurship. You can explore more financial options, like business loans for women, on Bajaj Markets and easily compare loan offers that suit your business goals.