Udyogini Scheme

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:

  1. A fully completed Application Form along with passport-sized photographs.
  2. Applicant's Aadhaar Card and Birth Certificate.
  3. Applicant's Below Poverty Line (BPL) card and Ration Card.
  4. Address and Income Proofs.
  5. Caste Certificate, if applicable.
  6. Copy of Bank passbook containing account details, bank and branch names, holder name, IFSC, and MICR.
  7. 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

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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:
  • Pledge of/Hypo. of assets created out of bank loan
  • Guarantee of spouse or third-party
  • Collateral security in the form of land/building property at least double the value of the loan (including the value of assets in case of term loan)

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

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Steps To Apply For Udyogini Scheme

  1. To apply for the Udyogini Scheme, visit the nearest bank with all the necessary documentation.
  2. Complete an application form at the bank to fulfill the required bank requirements.
  3. Alternatively, submit a loan application online by visiting the official websites of the banks that offer loans under the Udyogini program.
  4. Address and Income Proofs.

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Frequently Asked Questions

The Udyogini Scheme aims to empower women entrepreneurs by providing financial assistance and support for their business ventures.

The loan amount under the Udyogini Scheme can vary based on the specific business proposal and the applicant's eligibility, with a maximum loan amount set by the scheme.

The Udyogini Scheme offers collateral-free loans for eligible women entrepreneurs, reducing the need for traditional forms of security

Businesses engaged in the small-scale industry (SSI) sector, retailers, manufacturers, self-employed professionals, traders, and related categories are eligible for funding under the Udyogini Scheme.

Credit history may be considered as part of the loan approval process, but the scheme may also cater to applicants with limited credit history or those without a credit score.

Yes, there is an official online portal or website where women entrepreneurs can access detailed information about the Udyogini Scheme and its current status.

Yes, businesses supported by the Udyogini Scheme can prepay their loans, and there are no penalties for early repayment.

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