Synopsis: This article highlights the Udyogini scheme, which is a Karnataka government-backed initiative which is aimed at providing women with financial assistance and knowledge to start or expand a business.
What is the Udyogini Scheme all about?
The Udyogini scheme was launched in the year of 1997-1998. The scheme was later amended in 2004-2005. This scheme was sanctioned by the Karnataka government with a primary objective to assist women in achieving reliability on their own and economical assistance and independence through self-employment, mainly in the trade and service sector.
The Udyogini Scheme provides a subsidy on loans from the Karnataka state women corporation or partnered banks to provide them with funds to start or expand their business and become financially independent.
The Udyogini scheme focuses on income generation through entrepreneurship for women unlike other investment schemes that aim to grow money. These loans are distributed through commercial banks, district cooperative banks and regional rural banks.
Why was the Udyogini scheme introduced?
In states or areas that are currently under development, the loans are borrowed from private lenders at an interest rate higher than the usual rate due to the absence of a credit system in the areas. This is the sole reason why the Udyogini Scheme was introduced, to have a credit system that is accessible to women
The approval of this scheme is based on the scope of the business. Common businesses like textile manufacturers, notebook manufacturers, jam, jelly or pickle manufacturers. This scheme gives an adequate number of opportunities to women to guide them towards independence.
Benefits of the Udyogini scheme
- Women belonging to Scheduled tribe and Scheduled caste –
- Minimum amount: Rs 1,00,000.
- Maximum amount: Rs 3,00,000.
- The subsidy of the loan amount is 50%.
- Women belonging to a special category or a general category –
- Maximum amount: Rs 3,00,000.
- The subsidy for this loan amount is 30% or Rs 90,000.
Also Read: Top 10 Government-Backed Women Empowerment Schemes in India 2026 for Education, Jobs and Safety
Eligibility criteria for the Udyogini Scheme
- The applicant must be a woman between the age of 18-55 years across all categories.
- The minimum income for the family should be under Rs 1,50,000 for special and general categories. There is no income limit for widowed or disabled women.
- The applicant must be a permanent resident of Karnataka.
- The applicant should not have any pending loan payments.
Documents required
- 3 Passport-size photographs of the applicant.
- Certificate of training experience of the activity for which the loan is sought.
- Ration card/voter ID.
- Annual income certificate of the family.
- Caste certificate.
- A quotation for machinery and equipment.
FAQs
The Udyogini scheme is an initiative launched by the Karnataka government to provide financial stability to women.
Women between the age of 18-55 years who fall below the poverty line.
The interest rate for this scheme is charged at 6%.
Written by Atin Kevin
