Udyogini Scheme for Women Entrepreneurs – Scheme Details, Online Apply

May 25, 2023

8 min read

Udyogini Scheme For Women Entrepreneurship

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 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 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

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.

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.

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:

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

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.

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 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.

Udyogini Scheme FAQs:

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.