The Udyogini Scheme addresses issues that women face in the workplace, such as limited access to resources and training opportunities. By helping women with their entrepreneurial efforts, the scheme helps break down barriers and promote female entrepreneurship.
What is the Udyogini Scheme?
The Karnataka government introduced the Udyogini Scheme in 1997, which was updated in 2004 to empower women via self-employment in trade and services. It supports loans made by the Karnataka State Women’s Development Corporations, providing access to formal credit through banks and cooperative institutions while avoiding high interest rates from commercial lenders.
Benefits
For women from SC & ST category
- Unit cost: ₹ 1,00,000 to ₹ 3,00,000.
- Subsidy: 50% of the loan amount.
- Family income limit: below₹ 2,00,000 per year.
For women from Special Category and General Category:
- Maximum unit cost: ₹ 3,00,000.
- Subsidy: 30% of the loan amount, or a maximum of ₹ 90,000.
Additional Requirement:
- EDP (Entrepreneurship Development Program) training is provided to selected beneficiaries.
Eligibility
Applicants must meet the following requirements to be eligible for the Udyogini Scheme:
- Gender and Age: Applicants must be women aged 18 to 55 (for all categories).
- Family income: Women in general and specific groups make less than ₹1,50,000 per year.
- For bereaved and disabled women: No income limit
- Residency: Must be Karnataka permanent residents.
- Credit history: Should not have defaulted on any previous loans with any financial institution.
Related Scheme: Kalyana Lakshmi Pathakam
Reservation, Preference / Priority
Preference must be given to:
- Extremely poor.
- Destitute.
- Widows.
- Physically challenged individuals.
Candidates who have finished vocational or skill development training offered by KSWDC or another department.
Members of the World Bank-supported Swashakthi or Stree Shakthi groups will get 10% of the allotted goal.
Application Process
You can apply for Udyogini Yojana online and offline in both ways.
To Apply Online:
Step 1: Applicants can apply for loans under the Udyogini scheme through the official website of banks offering loans. The CDPO sends the application to the selection committee following review and verification. After reviewing, the Selection Committee sends them to the banks so that loans can be released.
Step 2: After reviewing the documentation and project plan, bank or KSFC representatives process the loan application. The bank distributes the loan amount after submitting a request for the subsidy to the corporation
Step 3: After the loan application is granted, the loan amount is transferred to the applicant’s bank account or directly to the supplier’s account to cover machinery, equipment, or other capital expenses.
To Apply Offline:
Step 1.
Visit the nearest bank with all the required documents to apply for a business loan. Fill out the application form, available at:
- Deputy Director/CDPO offices.
- Official websites of banks offering loans.
- Corporation’s website: www.kswdc.com.
Step 2:
- Fill out the form and submit it to the closest KSFC or bank branch. The documentation and project proposal will then be checked by Bank/KSFC representatives.
- After the bank requests the company to release the subsidy, the loan is processed.
Step 3:
- When a loan is accepted, the funds will be transferred to the supplier’s account for supplies, machinery, or other charges, or to the applicant’s bank account.
Documents Required
- Applicant’s 3 passport-size photographs.
- Training/experience certificate for the activity the loan is for.
- Detailed Project Report (DPR) for the activity seeking financial assistance.
- Ration Card or Voter ID Card.
- Annual Income Certificate of the family.
- Caste Certificate (for SC/ST applicants).
- Quotes for machinery, equipment, and other capital expenses.
The Udyogini Scheme aims to empower female entrepreneurs by providing them with the funding they need and training to start and run their businesses. This initiative encourages self-employment while also contributing to the state’s overall economic growth by making loans more available and offering skill development opportunities.
Frequently Asked Questions
The program provides funding to small and micro enterprises in several industries, such as handicrafts, retail, and agriculture.
Indeed, qualifying women are eligible for subsidies of up to Rs. 10,000, or 30% of the loan amount.
Yes, urban women entrepreneurs are eligible to apply for the Udyogini initiative as well.
No processing fee is applicable for the Udyogini Scheme loan applications.
Loans obtained through the Udyogini plan have an interest rate of 6%.
