What is Udyogini Scheme?
One of the primary concerns of the government is to empower the women of India and make them Aatmanirbhar. Keeping the welfare of women in mind, the Government of India has launched various initiatives and assisted in their development in all spheres of life. Udyogini scheme is one such scheme that provides financial assistance to budding entrepreneurs in the rural heartland and under-developed areas of India.
The Government of India under the Women Development Corporation has launched the Udyogini scheme for Indian Women entrepreneurs. The scheme encourages poor women entrepreneurs with financial assistance to start their own business. Under the scheme, these women entrepreneurs can avail business loan for starting their business activities under different categories.
The Udyogini scheme aims to enable women to become financially independent and support their families in rural or backward areas of our country.
Udyogini Scheme Insights
Under this scheme, the government has directed financial institutions, including banks, to provide interest-free business loans for women belonging to different sections of society without any prejudice or preference. Primarily, the Udyogini scheme was launched by the Karnataka State Women’s Development Corporation (KSWDC), Saraswat Bank, Punjab and Sind Bank, Regional Rural Banks, Cooperative Banks along with different private and other Public sector Banks.
| Loan amount | Max amount up-to ₹3 lakh |
| Interest rate | Very competitive (highly subsidized or free loans to special category) |
| Annual family income (applicant) | ₹1.5 lakh or less |
| Age limit | Min. 18 years and max. 55 years |
| For widows or disabled women | No income limit |
| Collateral | Not required |
| Processing fees | Nil |
How does the Udyogini scheme work?
The Udyogini scheme is meant to harness women’s entrepreneurship potential by providing customized loans in rural or underdeveloped areas of India. The ambitious scheme is simple and follows the steps:
- Women from targeted areas are given the necessary skills and customized business services.
- With adequate funding sanctioned focus shifts to increased production
- Increased income from operations
- Active women’s participation in decision making
Features of the Udyogini Scheme
1. Interest-free loans
The Udyogini scheme aims to provide financial help to women in establishing their small businesses. Financial institutions are more liberal in funding women belonging to special categories such as widows, destitute, and disabled to be accorded special privileges. Women under special categories get interest-free loans under the scheme.
2. High-value loan amount
Some of the applicants can get a loan of Rs. 3 lahks under the Udyogini scheme. However, for availing of this amount, eligible applicants must meet the required eligibility criteria.
3. 88 Small scale Industries are covered under the scheme
Eighty-eight small-scale industries get loan benefits under the scheme. Interest-free loans are also given to women entrepreneurs in the agriculture sector.
Udyogini Scheme Business List
| 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 mfg. | Footwear mfg. | Old paper mart | Silk weaving | Coconut shop |
| Cleaning powder | Gift articles | Pan & cigarette shop | Shops & establishment | Travel agency |
| Coffee & Tea powder | Gym centres | 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 parlour | 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 | Woollen garment mfg |
| Dry fish trade | Typing & photocopy | Printing & dyeing | Tailoring | |
| Eat outs | Jute carpet mfg. | Quilt & Bed mfg. | Tea stall |
4. Training for skill development
Under this scheme, skill development training is also imparted to women for establishing their business. The training includes the basics of running the business, such as:
- Business planning
- Pricing
- Costing
- Feasibility of the business
- Up to 30% loan subsidy
The main objective of the Udyogini scheme is to enable women to start and sustain their businesses. In helping them financially, the government proposes giving a 30% subsidy on the loans extended to women entrepreneurs. This further helps in easing the financial burden and making loan payments affordable.
5. Transparency in applicant evaluation
There is a transparent mechanism adopted to evaluate the eligibility criteria of an applicant before extending the loan. The Udyogini scheme application form checks the veracity of the beneficiary transparently.
Also Read: Best Low Investment Business Ideas for Women in India
Eligibility Criteria to Apply for Udyogini Scheme
Aspiring Indian women entrepreneurs who want to benefit from the Udyogini scheme have to fill out the Udyogini loan application. They are eligible to receive the funding after meeting the required criteria such as:
| Gender | Woman |
| Age criteria | Minimum 18 years & Maximum 55 years |
| Annual Family income | ₹1.5 lakh or less |
| Collateral | Not required |
| For widow & Disabled woman. | No age limit |
Documents required to apply for Udyogini Scheme
- Passport size photographs – 2
- Aadhar card
- Birth certificate
- A letter is written on the local MLA OR Local MP’s latter pad
- BPL card photocopy
- Caste certificate (for SC/ST)
- Income proof
- Photocopy of Bank passbook
Benefits of the Udyogini scheme
Some of the benefits of the scheme are:
- Under the scheme, 7047 women entrepreneurs are supported.
- 5432 children are supported under the scheme.
- 1698 villages are covered till now.
- 53762 producers are engaged so far.
With a secular aim to motivate and assist women entrepreneurs in backward areas, the Government of India launched the Udyogini scheme. The scheme mainly supports poor and illiterate women in rural areas and helps them become financially independent. Through financial assistance and imparting skill training, government women entrepreneurship and empowerment.
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Frequently Asked Questions
How to apply for Udyogini Scheme?
The following steps should be followed: • Either download or get the Udyogini yojana application form from the bank. • Fill the form correctly. • Submit all the documents required along with the form, as mentioned and required in the form. • The process to fill the form to avail the loan is over. Once approved, you will receive the funding.
What are the different financial institutions involved in the scheme?
Different financial institutions include Regional Rural Banks, Cooperative Banks, Punjab & Sind Bank, Saraswat Bank, and private and public sector banks.
What kind of skill development training is given?
Under the scheme, both skill development and entrepreneurial skills training is given. The objective is to help in building the knowledge base, right attitude, aptitude along with skills to execute the business idea successfully.
What social changes are witnessed due to the scheme implementation?
Around 50% of women reported a reduction in domestic violence. An increase in education spending on children, confidence to communicate with others, better hygiene apart from an increase in family incomes are the other changes witnessed in the society according to women beneficiaries of the Udyogini scheme.
How Udyogini provides women groups with market linkages support?
The Udyogini scheme emphasizes on making the internal and external stakeholders understand the concept of 4Ps of the market. It means – product, price, place and promotion of the goods. The groups on ground eliminate the middle man, and external stakeholders search for markets and better price.
How are financial linkages under Udyogini scheme are ensured?
wide range of opportunities are explored and implemented under Udyogini scheme to support women entrepreneurs. Financial assistance through subsidy on critical inputs, Kisan Credit cards, Cash Credit linkages, Micro-insurance, and transfer of funds through Udyogini are some of the ways to ensure financial support to the women groups.
What does it mean by Functional literacy under Udyogini?
Functional literacy means literacy program is designed under Udyogini scheme to make adult women semi-literate so that they can carry out their daily elementary work without help such as reading, writing, maintaining records, and basic calculations.
Are funds under Udyogini scheme meant for women from SC/ST category?
The Udyogini scheme’s main objective is to help women entrepreneurs with funding to do business. It does not discriminate based on caste, and all women, including SC/ST category, are eligible to avail funds under Udyogini scheme. However, women should be in the age group of 18-55 years for getting a loan.
Which different business types are supported under the Udyogini scheme?
There are 88 different types of businesses identified and funded under the Udyogini scheme. Businesses engrossed in the SSI sector, manufacturers, traders, self-employed, retailers, etc. can avail the loans.
Can women entrepreneurs from rural areas apply for the Udyogini Scheme, and are there any location-based preferences or restrictions?
Yes, women entrepreneurs from rural areas can apply for the Udyogini Scheme, also known as the Udyogini Yojana Scheme. There are typically no location-based preferences or restrictions. The scheme is designed to empower and support women entrepreneurs across India, enabling them to apply online wherever possible to access financial assistance and other resources for their business ventures.
What is the online application process for the Udyogini Scheme, and how long does it typically take to receive approval and financial support once I apply online?
The online application process for the Udyogini Scheme, also known as the Udyogini Yojana Scheme, typically involves visiting the official website, filling out the application form, and submitting the required documents. Approval and financial support processing times can vary, but applicants can generally expect a decision within a few weeks to a few months, depending on the specific circumstances and eligibility criteria. For more precise information, it is advisable to check the official Udyogini Scheme website or contact the relevant authorities.
