The Udyogini scheme, which translates to ‘women entrepreneur’ in Hindi, is an initiative by the Indian government aimed at empowering women entrepreneurs throughout the country. Administered by the Women Development Corporation under the Ministry of the Government of India, the scheme seeks to encourage and support entrepreneurship among women from socioeconomically disadvantaged backgrounds. It provides financial assistance to help beneficiaries establish and grow their business ventures.
Objectives of Udyogini Scheme
The Udyogini scheme is oriented towards enabling income generation and protecting socioeconomically vulnerable women. The main objectives of the scheme are:
- Promote Financial Inclusion of Women: The scheme aims to encourage women to leverage credit facilities to pursue entrepreneurship. It facilitates access to affordable financing by providing interest-free loans without discrimination.
- Enable Skill Enhancement: By supporting skill development through entrepreneurship training programs, the scheme equips women with the capabilities to build scalable businesses.
- Support Socioeconomic Empowerment: By helping women generate independent income streams, the scheme furthers financial self-reliance. This aids in uplifting their status and decision-making capacity.
- Prevent Exploitation: The scheme eliminates the necessity for women to seek credit from exploitative private money lenders, thereby providing them with protection.
Interest Rate of Udyogini Scheme
The Udyogini Scheme provides interest-free loans to women from all sectors of society, without any discrimination or bias. This scheme emphasizes the organization and implementation of skill development training programs for women, in addition to providing financial assistance. The following are the key details of this scheme:
| Interest Rate | Competitive, subsidized, or free for special cases |
| Loan Amount | Up to ₹3 lakhs |
| Annual Income | A family income of ₹1.5 lakh p.a. or less |
| Collateral | Not collateral required |
| Processing Fee | Nil |
Note: Please note that the interest rates mentioned are subject to change and are at the sole discretion of the Government of India and the respective banks or NBFCs.
Udyogini Scheme Eligibility Criteria
The Udyogini Scheme aims to empower women by facilitating their participation in economic activities and encouraging entrepreneurship. The eligibility criteria for the Udyogini Scheme may include factors such as:
- The applicant must be a woman.
- The applicant should be between 18 and 55 years of age.
- The applicant’s annual family income should be less than Rs.1.5 lakh.
- There is no upper income limit for women falling under special categories such as those who are disabled, widowed, or destitute.
- The scheme can be availed by businesses engaged in the small-scale industry (SSI) sector, retailers, manufacturers, self-employed professionals, traders, and other related categories.
- Must have a good credit score.
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Documents Required For Udyogini Scheme
To apply for the Udyogini Scheme, you must submit the following documents:
- A fully completed Application Form along with passport-sized photographs.
- Applicant’s Aadhaar Card and Birth Certificate.
- Applicant’s Below Poverty Line (BPL) card and Ration Card.
- Address and Income Proofs.
- Caste Certificate, if applicable.
- Copy of Bank passbook containing account details, bank and branch names, holder name, IFSC, and MICR.
- Any additional document required by the bank/NBFC.
Business Loan Offered Under Udyogini Scheme
The Udyogini Scheme is primarily offered by the Karnataka State Women’s Development Corporation (KSWDC), Punjab and Sind Bank, Saraswat Bank, several other private and public sector banks and leading NBFCs. Here is a detailed overview of each:
Udyogini Scheme from Karnataka State Women’s Development Corporation (KSWDC)
| Interest Rate | As per business requirements |
| Age Criteria | Min. 18 years and Max. 55 years |
| Loan Amount for Women belonging to SC/ST category | Unit cost from Rs. 1 lakh – Rs. 3 lakh |
| Subsidy | Up to 50%, family income limit to be less than Rs. 2 lakh for SC/ST category For General Category: Subsidy is 30% or a maximum Rs. 90,000 wherein the unit cost is Rs. 3 lakh |
| Family Income Criteria | Should be less than Rs. 1,50,000 for General and Special Category |
| EDP Training provided | For 3 – 6 days, before loan disbursal |
Udyogini Scheme from Saraswat Bank
| Micro Enterprises | Small Scale Enterprises | Medium Enterprises | |
|---|---|---|---|
| Interest Rate | 11.25% p.a. onwards | 11.25% p.a. onwards | 11.25% p.a. onwards |
| Loan Amount | Up to Rs. 10 lakh | From Rs. 10 lakh up to Rs. 100 lakh | From Rs. 100 lakh up to Rs. 200 lakh |
| Processing Fee | Rs. 5,000 | Upto Rs. 10 lakh – Rs. 5000 · Above Rs. 10 lakh and Upto Rs. 25 lakh – Rs. 7000 · Above Rs. 25 lakh – Rs. 10000 | Rs. 15,000 or 1% of the loan amount whichever is lower |
| Repayment Tenure | 6 Years | 6 Years | 7 Years |
| Margin | Nil | 20%-25% lower than the Bank’s norm | 20%-25% lower than the Bank’s norm |
| Security | Hypothecation + Guarantee of Spouse or a Family member wherever required. | Hypothecation + 2 Guarantors + Collateral Security (25%) | Hypothecation + 2 Guarantors + Collateral Security (30%) |
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Udyogini Scheme from Punjab & Sind Bank (PSB)
| Interest Rate – Vyapar Loan | As per the rate applicable to MSME |
| Nature of loan | Term Loan or Working Capital |
| Loan Amount | Loan/limit shall vary from case to case basis and depend upon the purpose of the loan |
| Processing Fee | Nil |
| Margin | Nil up to Rs. 25,000 |
| Security/Collateral* | Nil, up to Rs. 25,000 Above Rs. 25,000:
|
Udyogini Scheme from Bajaj Finserv
| Interest Rate | Interest-free loans to women from all sections of the society |
| Loan Amount | Max. up to Rs. 3 lakh |
| Loans available for | 88 SSIs – Small Scale Industries |
| Subsidy | Up to 30% |
| Family Income Criteria | Should be less than Rs. 1.5 lakh |
| Training for Skill Development | Available |
Note: Please note that the interest rates, fees, and charges mentioned are subject to change and are at the sole discretion of the banks, NBFCs, and RBI. Additionally, GST and service tax will be levied on the mentioned charges.
List of Business Categories Supported Under Udyogini Scheme
Loans through the Udyogini Scheme offer subsidies from the corporation to support business activities specifically for women entrepreneurs. Here is a list of business activities supported under the Udyogini Scheme:
| Agarbatti Manufacturing | Audio & Video Cassette Parlour |
| Bakeries | Banana Tender Leaf |
| Bangles | Beauty Parlour |
| Bedsheet & Towel Manufacturing | Book Binding And Note Books Manufacturing |
| Bottle Cap Manufacturing | Cane & Bamboo Articles Manufacturing |
| Canteen & Catering | Chalk Crayon Manufacturing |
| Chappal Manufacturing | Cleaning Powder |
| Clinic | Coffee & Tea Powder |
| Condiments | Corrugated Box Manufacturing |
| Cotton Thread Manufacturing | Crèche |
| Cut Piece Cloth Trade | Dairy & Poultry Related Trade |
| Diagnostic Lab | Dry Cleaning |
| Dry Fish Trade | Eat-Outs |
| Edible Oil Shop | Energy Food |
| Fair-Price Shop | Fax Paper Manufacturing |
| Fish Stalls | Flour Mills |
| Flower Shops | Footwear Manufacturing |
| Fuel Wood | Gift Articles |
| Gym Centre | Handicrafts Manufacturing |
| Household Articles Retail | Ice Cream Parlour |
| Ink Manufacture | Jam, Jelly & Pickles Manufacturing |
| Job Typing & Photocopying Service | Jute Carpet Manufacturing |
| Leaf Cups Manufacturing | Library |
| Mat Weaving | Match Box Manufacturing |
| Milk Booth | Mutton Stalls |
| Newspaper, Weekly & Monthly Magazine Vending | Nylon Button Manufacturing |
| Old Paper Marts | Pan & Cigarette Shop |
| Pan Leaf or Chewing Leaf Shop | Papad Making |
| Phenyl & Naphthalene Ball Manufacturing | Photo Studio |
| Plastic Articles Trade | Pottery |
| Printing & Dyeing of Clothes | Quilt & Bed Manufacturing |
| Radio & TV Servicing Stations | Ragi Powder Shop |
| Readymade Garments Trade | Real Estate Agency |
| Ribbon Making | Sari & Embroidery Works |
| Security Service | Shikakai Powder Manufacturing |
| Shops & Establishments | Silk Thread Manufacturing |
| Silk Weaving | Silk Worm Rearing |
| Soap Oil, Soap Powder & Detergent Cake Manufacturing | Stationery Shop |
| STD Booths | Sweets Shop |
| Tailoring | Tea Stall |
| Tender Coconut | Travel Agency |
| Tutorials | Typing Institute |
| Vegetable & Fruit Vending | Vermicelli Manufacturing |
| Wet Grinding | Woollen Garments Manufacturing |
Steps To Apply For Udyogini Scheme
- To apply for the Udyogini Scheme, visit the nearest bank with all the necessary documentation.
- Complete an application form at the bank to fulfill the required bank requirements.
- Alternatively, submit a loan application online by visiting the official websites of the banks that offer loans under the Udyogini program.
- Address and Income Proofs.
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