Udyogini Yojana Scheme: Features, Benefits, Eligibility Criteria and How to Apply Online for It

Udyogini Yojana Scheme Details

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. To explore more financing options, you can also consider the Pradhan Mantri MUDRA Yojana.
• 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

Udyogini Yojna Scheme eligibility criteria

Here is the basic eligibility criteria for Udyogini Yojana Scheme:

• The applicant should be a woman
• The family income should be less than Rs. 1,50,000 per annum for women in general and special categories
• There is no family income limit for widowed or disabled women
• The applicant should be between 18 to 55 years of age for all categories
• The applicant should be a permanent resident of Karnataka
• The applicant should not have defaulted on any past loans with any financial institution

Reservation/Preference /Priority

• Preference is given to those under poverty levels, destitute, widows, and physically challenged women.
• Additional preference may be given to candidates who have undergone prior skill development training or vocational training conducted by KSWDC or any other department.
• 10% of the allocated target is reserved for applicants who are members of World Bank-assisted Swashakthi or Stree Shakthi groups.

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. If you are looking for additional schemes, consider the PM SVANidhi scheme for street vendors.

How to apply for the Udyogini Yojna Scheme online

Here is how you can apply for the Udyogini Yojna Scheme online:

• Step 1: Applicants can apply for the loan online by visiting the official website of participating banks under the Udyogini scheme. The Child Development Project Officer (CDPO) reviews the applications, conducts a spot verification, and forwards them to the Selection Committee. The committee then evaluates the applications and submits them to the banks for loan processing
• Step 2: Bank or KSFC officials verify the applicant’s documents and project proposal before proceeding with the loan application. Once verified, the bank sends a request to the Corporation for subsidy approval and subsequently processes the loan
• Step 3: Upon approval, the loan amount is either credited directly to the applicant’s bank account or transferred to the supplier’s account for purchasing machinery, equipment, or other capital expenses

How to apply for Udyogini Yojna Scheme offline

Here’s how you can apply for the Udyogini Yojna Scheme offline:

• Step 1: The applicant can apply for a business loan by visiting the nearest bank with all the required documents and completing the application form. Forms are available at the offices of the Deputy Director/CDPO, on the official websites of participating banks, or can be downloaded from the Karnataka State Women’s Development Corporation website (www.kswdc.com)
• Step 2: The filled application form, along with the necessary documents, must be submitted to the nearest bank or KSFC branch. Bank/KSFC officials will verify the documents and project proposal before processing the loan. Once verified, the bank submits a request to the Corporation for subsidy approval and subsequently disburses the loan amount
• Step 3: After loan approval, the funds are either credited to the applicant’s bank account or transferred directly to the supplier’s account for purchasing machinery, equipment, or other capital expenditures

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:

Note: The interest rates may change and are at the discretion of the Government of India and the respective banks or NBFCs. For women interested in other support options, the pmegp is another great initiative to explore.