What is the Udyogini Yojana?
Implemented by the Women development corporation, Udyogini is a scheme to provide subsidised loans to aspiring women entrepreneurs from rural and underdeveloped areas. The scheme aims to promote women's entrepreneurship, financial empowerment, and self-reliance by offering necessary financial support. The Udyogini scheme also aims to build micro-enterprises that support the overall growth of the country.
Udyogini Scheme Details
Category |
Scheme features |
Interest rate |
Competitive, subsidised, or waived for specific qualifying cases |
Loan amount |
Up to Rs. 3 lakhs |
Annual family income |
Must be Rs. 1.5 lakhs or less |
Collateral |
No collateral required for loans under this scheme |
Processing fee |
No processing fee for loan applications under this scheme |
Features of Udyogini Yojana scheme
The scheme extends interest-free loans to women from all sections of society who are looking to fund their small businesses.
- High-value loan amount
Applicants can avail of a loan of up to Rs. 3 lakh under this scheme, provided they meet the essential eligibility criteria. - Loans are available for 88 small-scale industries
With the Udyogini loan, you can start businesses categorised under 88 small-scale industries. Some of them are fisheries, bakeries, groceries, tailoring shops, libraries, and more. Interest-free loans under this scheme are also available for women starting a business in the agriculture sector. - Training for skill development
This scheme also aims to impart functional skills to women regarding business planning, pricing, costing, feasibility, and more alongside financial support. - Up to 30% loan subsidy
The government proposes up to a 30% subsidy on loans extended under this scheme to make repayment affordable for women. - Transparent evaluation of the beneficiary
The evaluation process of the Udyogini Yojana application form ensures a transparent assessment for beneficiary selection.
Benefits of the Udyogini Scheme
The Udyogini Scheme helps women start and run businesses successfully by providing easy financing, skills training, and enterprise support. This promotes livelihoods and financial independence. Here are the benefits of the Udyogini Scheme for women entrepreneurs in India:
- Interest rate: Women from special categories like widows, destitute, and differently abled can get interest-free loans for starting micro-enterprises and small businesses
- High-value loans: Women entrepreneurs can get loans up to Rs 3 lakhs if they meet the eligibility criteria. This funding provides enough capital to start businesses and supports inclusive growth
- Covers 88 industries: The scheme provides financial aid for starting 88 types of small-scale industries. Women in agriculture can also get interest-free loans
- Skills training: Women receive training in business basics like planning, pricing, costing, and feasibility assessment, equipping them with the skills to manage their enterprises
- Loan subsidy: To help with repayments, the scheme offers up to a 30% subsidy on loans for women entrepreneurs
Eligibility criteria to qualify for a loan under Udyogini
Aspiring women entrepreneurs can apply for funding once they have met the below eligibility criteria:
- Applicant should be aged between 18 years to 55 years.
- The applicant's family income should be less than Rs. 1.5 lakh.
The upper limit for income is not applicable for women falling under special categories like disabled, widowed, or destitute.
Documents required for a loan under Udyogini Yojana
- Aadhaar card or below poverty line (BPL) card
- Essential certificates like a certificate of income and birth certificate
- Photocopy of a bank passbook with details such as the account holder's name, name of the bank and concerned branch, account number, IFSC and magnetic ink recognition (MICR) codes.
Alternatively, women entrepreneurs can also avail of a Bajaj Finserv Business Loan for Women at competitive interest rates. These loans are collateral-free and provide funds up to Rs. 80 lakh with simple eligibility criteria and minimal documentation.
How to apply for a loan under this scheme
Here are the steps to apply for a loan under the Udyogini scheme:
1. Get the application form from a lender who offers loans under this scheme. You can also download the Udyogini online application form from the website of a partner financial institution
2. Fill in the application form accurately with all required details. Make sure no information is missing
3. Attach copies of the necessary documents mentioned in the form, such as identity proof and income proof
4. Submit the completed form along with the documents to the lender. You can also apply for a Udyogini loan online on the lender’s website
5. The lender will verify your application and approve loans for eligible applicants. Once approved, the loan amount will be transferred to your account
Udyogini Scheme Interest Rate
The Udyogini Scheme offers interest-free loans to women from all parts of society without any discrimination. Besides financial aid, this scheme focuses on organizing and providing skill development training programs for women. Here are the key details:
Interest rate |
Competitive, subsidised, or free for special cases |
Loan amount |
Up to ₹3 lakhs |
Annual income |
Family income of ₹1.5 lakh per year or less |
Collateral |
No collateral required |
Processing fee |
None |
Note: The interest rates may change and are at the discretion of the Government of India and the respective banks or NBFCs.
Frequently asked questions
The main goals of the scheme are:
- Encourage women to take loans from banks and financial institutions for income-generating activities
- Make financial assistance easier for women from SC and ST or special categories at lower rates
- Provide interest-free loans to eligible women without any discrimination
- Ensure skill development for women through EDP Training
- Prevent women from borrowing from private money lenders or financial institutions with high interest rates
For women from scheduled castes and scheduled tribes, the unit cost ranges from Rs. 1.00 lakh to Rs. 3.00 lakhs. They receive a subsidy of 50% of the loan amount, and their family income must be below Rs. 2.00 lakhs.
For women in special categories such as widows and the general category, the maximum unit cost is Rs. 1.00 lakh. Special category women get a subsidy of 30% or up to Rs. 10,000. General category women get a subsidy of 20% or up to Rs. 7,500.
The Udyogini scheme provides interest-free loans to women entrepreneurs with small businesses. Under this scheme, disabled women, Dalit women, and widows can get interest-free loans.
Women from other categories can also get loans under the Udyogini scheme but with an interest rate of 10% to 12%.
Eligible applicants can receive a 30% subsidy on the loan based on their family's annual income. The government also adjusts the interest rate depending on your location.
