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.
Through the Udyogini Yojana, the Karnataka government seeks to help women entrepreneurs fulfil their aspirations.
What is the purpose of the Udyogini Scheme?
The purpose of the Udyogini business loan 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 this women entrepreneur loan 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.
The Udyogini loan amount can go a long way in helping women entrepreneurs set up their businesses and ensure their success.
Eligibility criteria for loans under the Udyogini Scheme
The Udyogini scheme eligibility criteria 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 ensure that the Udyogini scheme benefits 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
While applying for any loan, it is imperative to check first as to which documents will be required. If you are wondering how to apply for Udyogini scheme, it is crucial to know that for the Udyogini, the documents required are:
- Duly filled application form 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. The caste certificate is required if you are applying for the Udyogini SC/ST subsidy.
Discover more than just the Udyogini Yojana scheme; explore the complete documentation requirements for MUDRA loans at Lendingkart.
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. The Udyogini interest rates have made funds accessible to a whole range of women-run businesses. The Udyogini Scheme of Karnataka has been hailed for its success across the country. The Udyogini rural women loan, especially, is aimed at assisting women entrepreneurs in the underserved parts of the state.
Some of the 88 enterprises 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 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 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
The Udyogini subsidy or the Udyogini scheme’s training programme are meant to empower women in different parts of the state of Karnataka. You can choose to apply online or through offline means for the Udyogini loan. The Udyogini loan processing time will remain the same for both.
Here is a comparison of the application process for the Udyogini Scheme via online and offline modes:
| 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 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.
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.
