Entrepreneurship is not just about starting a business; it is about gaining independence, creating opportunities, and building a better life. To encourage this spirit among women, the Government of Karnataka launched the Udyogini Scheme. This initiative has been helping women from various backgrounds, especially those from weaker sections of society, to become self-reliant through small businesses and micro-enterprises.
In this article, we will cover everything you need to know about the Udyogini Scheme in detail—its benefits, eligibility, application process, required documents, FAQs, and much more. Let’s explore step by step! 🚀
📖 Introduction to the Udyogini Scheme
The Udyogini Scheme was first introduced in 1997-98 and later amended in 2004-05 by the Karnataka State Women’s Development Corporation (KSWDC). The aim was simple yet powerful:
✅ Support women in becoming self-reliant
✅ Provide financial assistance for self-employment
✅ Promote women-led businesses in trade and service sectors
Through this scheme, women can access loans with subsidies from banks and other financial institutions like:
- Commercial Banks
- District Cooperative Banks
- Regional Rural Banks (RRBs)
👉 Instead of depending on private moneylenders who charge very high interest, women can now borrow from formal credit channels at lower rates.
This scheme also supports profitable activities such as:
- 📚 Bookbinding and notebook manufacturing
- 🖍️ Chalk and crayon production
- 🍯 Making jam, jelly, pickles, and papads
- 👗 Saree and embroidery work
- 🎨 Printing and dyeing clothes
- 🧵 Woolen weaving
Thus, Udyogini creates equal opportunities for women to succeed as entrepreneurs.
💡 Benefits of the Udyogini Scheme
The biggest strength of the Udyogini Scheme is its subsidy-based financial support. Here’s a clear breakdown:
For SC/ST Women 👩🏽🦱
- Minimum loan unit cost: ₹1,00,000
- Maximum loan unit cost: ₹3,00,000
- Subsidy provided: 50% of loan amount
- Income limit: Family income should be below ₹2,00,000 per year
For Special Category & General Category Women 👩🏻🦰
- Maximum loan unit cost: ₹3,00,000
- Subsidy provided: 30% of loan amount (maximum ₹90,000)
- Entrepreneurship Development Program (EDP) training provided
👉 This means women not only get financial support but also training to run their businesses successfully.
📝 Eligibility Criteria for Udyogini Scheme
Before applying, women must check the eligibility conditions. Here are the key requirements:
- Gender: Only women can apply.
- Age: Between 18 to 55 years.
- Income:
- For General & Special Category: Family income < ₹1,50,000 per year.
- For Widows/Disabled Women: No income limit.
- Residential Proof: Applicant must be a permanent resident of Karnataka.
- Loan History: Applicant should not have defaulted on any previous loans.
👉 Special preference is given to poor, widowed, destitute, and physically challenged women.
🎯 Reservation & Priority
The Udyogini Scheme ensures fair access to those who need it most. Priority is given to:
- Extremely poor women 👩🏾🌾
- Widows & destitute 👩🏻🦳
- Physically challenged women ♿
- Women with prior skill development or vocational training
Additionally, 10% of the scheme’s target is reserved for members of World Bank-assisted Swashakthi or Stree Shakthi groups.
This structured reservation ensures that even the most vulnerable women get opportunities.
🏦 Application Process for Udyogini Scheme
The application process is simple and can be done offline or online.
Offline Application Process
1: Collect Application Form 📝
- Available at banks, Deputy Director/CDPO offices.
2: Submit Application 📂
- Fill out the form and attach required documents.
- Submit at the nearest bank or KSFC branch.
- Officials will verify documents and the project proposal.
3: Loan Sanction & Disbursement 💰
- Once approved, banks request subsidy release from the Corporation.
- Loan amount is transferred either to:
- Applicant’s bank account, OR
- Directly to suppliers for machinery and equipment.
👉 This transparent system ensures that funds are used for the right purpose.
Online Application Process 💻
Step 1:
Applicants can apply for loans online by visiting the official website of banks offering loans under the Udyogini Scheme. After submission, the CDPO (Child Development Project Officer) examines the application and conducts spot verification. The verified applications are then forwarded to the Selection Committee.
Step 2:
The Selection Committee examines the applications and forwards eligible ones to the concerned banks to release the loan.
Step 3:
The bank / KSFC officials verify the documents and the project proposal. Banks then send a request letter to the Corporation for the release of subsidy. After approval, the bank releases the loan amount.
Step 4:
Once the loan is sanctioned, the loan amount is disbursed either:
- To the applicant’s bank account, or
- Directly to the supplier’s account for machinery, equipment, or other capital expenses.
📑 Documents Required
Applicants must prepare the following documents before applying:
- 3 Passport-size photographs 📸
- Training/Experience Certificate 🎓
- Detailed Project Report (DPR) 📄
- Ration Card / Voter ID Card 🪪
- Family Income Certificate 💵
- Caste Certificate (for SC/ST applicants) 🧾
- Quotations for Machinery/Equipment 🏭
👉 A well-prepared project report increases the chances of loan approval.
❓ Frequently Asked Questions (FAQs)
1️⃣ What is the Udyogini Scheme in Karnataka?
It is a financial assistance program launched by the Government of Karnataka to support women entrepreneurs through subsidized loans and training.
2️⃣ Who can apply for the scheme?
Women aged 18-55 years from families with income below ₹1.5 lakh (general/special category) or widowed/disabled women without any income limit.
3️⃣ What is the maximum loan amount available?
- ₹50,000 for manufacturing sector
- ₹2,00,000 for service sector
4️⃣ What is the interest rate?
Loans are provided at a 6% interest rate.
5️⃣ What is the repayment period?
Loans must be repaid within 36 months, including a 6-month moratorium period.
6️⃣ Is there a processing fee?
❌ No processing fee is charged.
7️⃣ Can women from urban areas apply?
✅ Yes, women from both urban and rural areas can apply.
8️⃣ Can women who already have loans apply?
✅ Yes, they can apply again under this scheme.
9️⃣ How long does it take for loan approval?
Generally, loans are sanctioned within 15 days of completing the application process.
🔟 Is online application available?
Currently, most applications are processed offline, but forms are available for download online.
🔗 People Also Reading
- Pradhan Mantri Mudra Yojana (PMMY) – For women entrepreneurs needing micro-loans.
- Startup India Seed Fund Scheme- For Startups
- Prime Minister’s Internship Scheme 2025
- Pune MHADA Lottery 2025
🌟 Conclusion
The Udyogini Scheme is a life-changing opportunity for women in Karnataka. By offering easy loans, subsidies, and training, it not only promotes self-employment but also strengthens the role of women in society.
Thousands of women have already started their businesses under this scheme—from pickle-making units to tailoring shops, from weaving centers to small-scale food businesses.
If you are a woman with an entrepreneurial dream, the Udyogini Scheme can be your first step toward financial freedom. 🌸
👉 For more such detailed guides on government schemes, stay connected with mygovscheme.com.
