What is Udyogini Scheme?
One of the primary concerns of the government is to empower 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 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 of liberal loans 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 loans to women belonging to different sections of the society without any prejudice or preference. Primarily, 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.
Max amount up-to ₹3 lakh
Very competitive (highly subsidized or free loans to special category)
Annual family income (applicant)
₹1.5 lakh or less
Min. 18 years and max. 55 years
For widows or disabled women
No income limit
How does the Udyogini scheme work?
The Udyogini scheme is meant to harness women 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 on increased production
- Increased income from operations
- Active women participation in decision making
Features of the Udyogini Scheme
- 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 are accorded special privileges. Women under special categories get interest-free loans under the scheme.
- High-value loan amount
Some of the applicants can get a loan of Rs. 3 lakh under the Udyogini scheme. However, for availing this amount, eligible applicants must meet the required eligibility criteria.
- 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.
The list of 88 small-scale industries are:
Edible oil trade
Radio & TV service
Leaf cup mfg.
Ragi powder shop
Banana leaf mfg.
Bedsheet & Towel mfg.
Books & notebooks binding
Fax paper mfg.
Real estate agency
Bamboo article mfg.
Sari & embroidery
Canteen & catering
Newspaper etc., vending
Chalk Crayon mfg.
Nylon button mfg.
Shikakai powder mfg
Old paper mart
Pan & cigarette shop
Shops & establishment
Coffee & Tea powder
Pan masala shop
Silk thread mfg.
Corrugated box mfg.
Cotton thread mfg.
Household article retail
Phenyl & naphthalene
Soap oil, cake mfg.
Cut-piece cloth trade
Ice cream parlour
Dairy& poultry trade
Jams, Jellies, pickles mfg.
Plastic article shop
Woollen garment mfg
Dry fish trade
Typing & photocopy
Printing & dyeing
Jute carpet mfg.
Quilt & Bed mfg.
- 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
- 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 the women entrepreneurs. This further helps in easing the financial burden and making loan payments affordable.
- 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.
Eligibility Criteria to apply for Udyogini Scheme
Aspiring Indian women entrepreneurs who want to benefit from the Udyogini scheme has to fill the Udyogini loan application. They are eligible to receive the funding after meeting the required criteria such as:
Minimum 18 years & Maximum 55 years
Annual Family income
₹1.5 lakh or less
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 local MLA OR Local MP latter pad
- BPL card photocopy
- Caste certificate (for SC/ST)
- Income proof
- Photocopy of Bank passbook
Benefits of 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 the 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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