Udyogini Scheme – Benefits for Women Entrepreneurs
The Udyogini Scheme is a government initiative in Karnataka that provides subsidized loans and skill training to women entrepreneurs to start or expand their businesses. The Udyogini loan working capital loan scheme aims to empower women, prevent them from borrowing at high interest rates, and help them gain self-reliance through self-employment, especially in the trade and service sectors.
What is the purpose of the Udyogini Scheme?
The purpose of the Udyogini Scheme is to empower women entrepreneurs and promote their self-reliance through subsidized loans and skill training by giving them the small business loan. The key objectives of the scheme are:
- To prevent women from borrowing at high interest rates from moneylenders
- To provide loans through banks and financial institutions by giving subsidies from the Women Development Corporation.
- To assist women in gaining self-reliance through self-employment, especially in trade and service sectors.
- To build the capacity of women to become financially sound and deal with financial institutions
- To promote women’s entrepreneurship and empowerment.
The scheme aims to bridge the gap between underprivileged women and access to financial assistance, enabling them to start businesses in various small-scale industries. When applying for the Udyogini Scheme, women entrepreneurs can access various types of loans such as MSME loans to support their ventures and enhance their financial stability.
Features and Benefits of the Udyogini Loan Scheme
This scheme provides numerous features and benefits as follows:
- High-Value Loan Amount: Women entrepreneurs can secure loans up to Rs. 3 lakhs under this loan scheme. It helps them to establish and grow small businesses. This financial support empowers women to overcome funding barriers and fosters economic independence. Plus, the scheme ensures that applicants meeting the criteria can access capital without meeting stringent requirements like collateral.
- Loans for 88 Small-Scale Industries: The scheme provides financial support to businesses across 88 industries such as fisheries, bakeries, tailoring, libraries, and agriculture. This diversification allows women to pursue ventures based on their skills and community needs, encouraging entrepreneurship at a grassroots level. Women in agriculture can also avail interest-free loans, promoting growth in the farming sector.
- Subsidised Loans for Affordable Repayment: To reduce financial strain, the scheme includes up to a 30% subsidy on loans, making repayment easier for women entrepreneurs. This benefit ensures that women can focus on running their businesses without worrying about excessive debt. This subsidy is especially helpful for Udyogini Yojana scheme 2024 applicants from economically weaker sections. It ensures inclusivity in financial access.
- Skill Development Training: In addition to financial support, the scheme offers training in business planning, pricing, costing, and feasibility studies. This ensures women are equipped with essential skills to effectively manage their enterprises and scale operations. By combining funding with functional expertise, the Udyogini scheme for women’s entrepreneurs ensures holistic business development.
- Transparent Beneficiary Evaluation: The evaluation process for this scheme ensures fairness and clarity in selecting eligible beneficiaries. This transparency builds trust in the system and motivates more women to apply for the scheme. By eliminating biases, the scheme effectively reaches women who need financial assistance the most.
Udyogini Scheme Eligibility Criteria for Loans
The eligibility criteria for loans under the Udyogini Scheme include:
- Applicant Profile: Women entrepreneurs are eligible for loans under this scheme.
- Age Requirement: Applicants should fall within the age range of 18 to 55 years.
- Income Criteria: Women from Below Poverty Line (BPL) families are eligible, with an annual family income cap of up to Rs. 1.5 lakh.
- Business Type: Various businesses qualify for loans, including those in the Small Scale Industries (SSI) sector, retailers, manufacturers, self-employed professionals, and traders.
- Credit History: Applicants should not have defaulted on any previous loans.
- Special Categories: Women from special categories, such as disabled or widowed, may be eligible for interest-free loans or other concessions.
These criteria given for the Udyogini scheme details aim to support women entrepreneurs from diverse backgrounds and empower them through financial assistance for business ventures.
Also Read: Government Loan Schemes for Women Entrepreneurs
Documents needed for Udyogini Scheme
To apply for the Udyogini yojana scheme online, the following documents are required:
- Duly filled the Udyogini scheme online form or offline application with passport-sized photographs
- Applicant’s Aadhaar card or BPL card
- Birth certificate
- Income certificate
- Caste certificate for SC/ST category
- Ration card photocopy
- Bank passbook photocopy with details like account number, name, IFSC, MICR codes
- Detailed Project Report (DPR) outlining the proposed business activity
- The application can be submitted at the nearest bank branch offering loans under the Udyogini Scheme
The bank will verify the documents and project proposal before processing the loan application. Once approved, the loan amount is disbursed directly to the applicant’s account or to suppliers for capital expenditures. Discover more than just the Udyogini Yojana scheme; explore the complete documentation requirements for MUDRA loans at Lendingkart.
What is the Interest Rate for a Loan Under the Udyogini Scheme?
- This scheme provides interest-free loans to women entrepreneurs from marginalised groups, such as widows, disabled women, and Dalit women, to encourage small-scale business ventures.
- For women from other categories, loans are offered at an interest rate of 10% to 12%.
- Eligible applicants may receive up to 30% on their loan, depending on the family’s annual income and geographical location.
- No collateral or processing fees are required for loans, making the scheme accessible to economically weaker sections.
- Loan amounts can go up to Rs. 3 lakhs, and interest rates are subject to change based on decisions by the Government of India Udyogini scheme banks.
List of enterprises participating in the Udyogini Yojana
The Udyogini Yojana scheme supports various enterprises to empower women entrepreneurs, offering subsidized loans and skill development. Some of the 88 Udyogini scheme business lists that are eligible for funding include bakeries, beauty parlors, book binding, clinics, dairy-related trades, diagnostic labs, flour mills, gym centers, handicrafts, ice cream parlors, libraries, matchbox manufacturing, and more.
| Agarbatti Manufacturing | Edible oil trade | Library | Radio TV service | Bakeries |
| Audio-Video Parlour | Energy food | Leaf cup mfg. | Ragi powder shop | Banana leaf mfg. |
| Bedsheet Towel mfg. | Fairtrade shop | Mat weaving | Readymade garment | Beauty Parlour |
| Books notebooks binding | Fax paper mfg. | Matchbox mfg. | Real estate agency | Bangles |
| Bottlecap mfg. | Fish stalls | Milk booth | Ribbon mfg. | Creche |
| Bamboo article mfg. | Flower shops | Mutton stalls | Sari embroidery | Clinic |
| Canteen catering | Flour mills | Newspaper etc., vending | Security service | Condiments |
| Chalk Crayon mfg. | Fuelwood | Nylon button mfg. | Shikakai powder mfg | Diagnostic lab |
| Chappal manufacturing. | Footwear mfg. | Old paper mart | Silk weaving | Coconut shop |
| Cleaning powder | Gift articles | Pan cigarette shop | Shops establishment | Travel agency |
| Coffee Tea powder | Gym centers | Pan masala shop | Silk thread mfg. | Tutorials |
| Corrugated box mfg. | Handicrafts mfg. | Papad mfg. | Silk-worm rearing | Typing institute |
| Cotton thread mfg. | Household article retail | Phenyl naphthalene | Soap oil, cake mfg. | Vegetable vending |
| Cut-piece cloth trade | Ice cream parlor | Photo studio | Stationery shop | Vermicelli mfg |
| Dairy poultry trade | Ink mfg. | Pottery | STD BOOTHS | Wet grinding |
| Dry cleaning | Jams, Jellies, pickles mfg. | Plastic article shop | SWEET SHOPS | Woolen garment mfg |
| Dry fish trade | Typing photocopy | Printing dyeing | Tailoring | |
| Eat outs | Jute carpet mfg. | Quilt Bed mfg. | Tea stall |
Also Read: Government MSME Schemes
Application Process For Udyogini Scheme
Here is a comparison of the Udyogini yojana apply online vs offline process:
| Step | Online Application | Offline Application |
| 1 | Visit the bank’s official website offering loans under the Udyogini scheme. | Get the application form from the Deputy Director or CDPO office or visit the bank’s official website that offers loans under the Udyogini scheme. |
| 2 | Look for the Udyogini scheme option from the navigation bar and click the link to complete the application form. | You must visit the nearest bank that offers a loan under the Udyogini scheme with all the required documents. |
| 3 | Fill out the online Udyogini scheme application form. | Fill out the application form to submit it to the officials along with the required documents. |
| 4 | Submit the form electronically. | They will verify your loan requests and examine documents and project proposals. |
| 5 | CDPO will scrutinize your application and forward it to the selection committee after spot verification. | After that, they will process your loan application and send a request letter to the corporation to release the subsidy. |
| 6 | After that, they will examine your application form and forward it to the bank. | Once they approve your loan application, the bank disburses the amount to your bank account or directly to suppliers’ accounts for machinery, equipment and other capital expenditures. |
The key difference is that for offline applications, you need to visit the nearest bank branch with the required documents, while for online applications, you can complete the entire process on the bank’s website.
Conclusion
The Udyogini Yojana empowers women by providing interest-free loans, skill development training, and financial support to establish and grow small businesses. By promoting inclusivity and self-reliance, it opens pathways for women to achieve economic independence. For additional financing options tailored to your business needs, platforms like Lendingkart can help you simplify the loan process and fuel your entrepreneurial journey.
Frequently Asked Questions
What is the minimum amount for an IMPS transfer?
The minimum amount for an IMPS transfer is Re 1, making it a convenient option for even small transactions
Are there any extra charges for an IMPS transfer?
IMPS may have varying charges depending on the bank, but some banks offer IMPS transfers free of charge for online transactions.
How many times can NEFT transactions be done in a day?
There is no limit on the number of NEFT transactions that can be done in a day, allowing flexibility for multiple transfers.
Is IMPS a better mode of transfer than NEFT and RTGS?
IMPS is often considered a better mode of transfer due to its simplicity, instant transfer capability, and availability 24/7, making it a preferred choice for quick and convenient fund transfers.
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