Udyogini Scheme: Helping Women Start Their Own Businesses in India

Women aspiring to establish businesses in India often face challenges in accessing affordable financing and entrepreneurial training, particularly in rural and semi-urban regions. To address these barriers, the government introduced the Udyogini Scheme. It is a financial aid scheme that offers women subsidised loans and chances to learn new skills. This program has proven to be a great help for women who want to start or grow their small enterprises. In this blog, we will learn more about the Udyogini scheme and how it benefits you.

What is the Udyogini Scheme?

The Udyogini Scheme is a government-supported scheme that helps women business owners by making it easier for them to get low-interest loans. It is mostly for women who are poor, widowed or disabled. With this program, women can get loans to establish or grow small enterprises in a lot of different fields.

The program is especially helpful in rural and poor communities, where women may not have the collateral or steady income they need to get a regular bank loan. The Udyogini Scheme helps people become financially independent and encourages business by giving them loans with low or no interest.

Important Parts of the Udyogini Scheme

Here are some of the primary features:

• Amount of the loan: Up to ₹3 lakh, depending on the type of business.
• Interest Subsidy: Loans with no interest for widows, disabled women and women from families that are below the poverty line (BPL). Lower interest rates for other eligible women entrepreneurs.
• Eligible Sectors: More than 80 types of businesses, such as tailoring, farming, handicrafts, and small-scale industries.
• Skill Development: Courses in business planning, entrepreneurship, and costing.
• Loans without collateral: Loans up to ₹1 lakh do not n't need any security.
• Easy to Apply: You can apply online or in person.

Also Read: List of Government Business Loan Schemes for Small Businesses

Advantages of the Udyogini Scheme for Women Business Owners

The Udyogini Scheme has more benefits than just giving money. Below are a few advantages of the Udyogini scheme:

• Affordable Credit: Get loans with low or no interest.
• Opportunities for Business: Loans can be employed in many different areas, such as agriculture and services.
• Skill Development: Women learn how to manage and expand their enterprises well.
• Special Provisions: Women who are widowed, disabled or from low-income families get extra help and have fewer eligibility requirements.
• Financial Independence: This program helps women become self-sufficient and contribute to the family's income.

Requirements for the Udyogini Scheme

To be eligible for the loan, candidates must meet the following requirements:

• Age: Women between the ages of 18 and 55.
• Income Limi t: The family's yearly income should usually be less than ₹1.5 lakh. Widows and disabled women are not required to pay.
• Residency: You must live in India.
• Loan History: Women who have missed payments on past loans may not be able to get a loan.
• Priority Groups: Families with BPL, widows and disabled women are given the most help.

Also Read: Top 6 Government Loan Schemes for Women Entrepreneurs in 2025

Documents Needed to Get a Loan from the Udyogini Scheme

People who want to apply must give:

• Aadhaar card or ID card for voters
• Local government issues an income certificate
• A copy of your bank account information and passbook
• BPL card (if you have one)
• Recent photos of you that are the size of a passport
• Business strategy or project report for using the financing

How to Apply for the Udyogini Scheme Loan Online

Applying online is convenient and quick. Here is how:

1. Visit the official website of the bank implementing the Udyogini Scheme or the Karnataka State Women’s Development Corporation (KSWDC) website.
2. Download or fill in the Udyogini application form.
3. Upload scanned copies of the required documents.
4. Submit the form and keep the acknowledgement number.
5. Once verified, the loan is sanctioned and credited to your bank account.

How to Apply for the Udyogini Scheme Offline

Women who prefer offline applications can follow these steps:

1. Visit the nearest bank branch or the District Industries Centre (DIC).
2. Collect the Udyogini Scheme application form.
3. Fill in the details and attach all required documents.
4. Submit the form to the concerned officer.
5. Officials will verify eligibility and documents.
6. Once approved, the loan amount is disbursed to the applicant’s bank account.

Also Read: Mudra Loan: Government Scheme for Business Loans

Udyogini Scheme Interest Rate and Loan Details

This structure ensures affordable financing, especially for women from weaker sections.

Business Categories Covered Under the Udyogini Scheme

The scheme covers 88 business activities, including:

• Tailoring and garment shops
• Agriculture and allied activities
• Dairy and poultry farming
• Beauty parlours and salons
• Handicrafts and artisanal work
• Electronics and mobile repair
• Stationery and retail shops
• Food processing units

This wide coverage gives women the flexibility to pursue ventures best suited to their skills and local demand.

Training and Skill Development under the Udyogini Scheme

Apart from providing loans, the scheme also focuses on skill building. Women are offered training in:

• Business planning and feasibility studies
• Costing and pricing techniques
• Enterprise development programmes
• Financial literacy and basic bookkeeping

These skills help ensure that loan funds are used effectively and businesses remain sustainable.

Final Thoughts

The Udyogini Scheme has emerged as a powerful tool for promoting women’s entrepreneurship in India. By offering subsidised Business Loan, skill development opportunities, and broad sector coverage, it removes traditional barriers to credit and business growth. For many women, especially in rural India, the scheme is not just financial support — it is a pathway to independence and empowerment. Women can easily apply for a loan under the Udyogini Scheme to start or expand their businesses and move towards economic self-reliance.

FAQs

Q.1. Can widowed and disabled women apply without income limits?

A. Yes, widows and disabled women are exempt from income restrictions under the scheme.

Q.2. Is collateral mandatory for the loan?

A. No, collateral is not required for loans up to ₹1 lakh. For higher amounts, collateral requirements may apply.

Q.3. What is the maximum repayment tenure?

A. Repayment tenure is 3 years, including a moratorium period of 6 months. depending on the loan amount and bank norms.

Q.4. Can women with existing Business Loans apply again?

A. Yes, provided they have a good repayment record and no history of default.

Q.5. How is the subsidy amount determined?

A. The subsidy is based on the applicant’s category (BPL, widow, disabled) and the loan amount sanctioned.

Q.6. Can applicants track loan approval status online?

A. Yes, most implementing banks allow applicants to track loan status using their application or acknowledgement number.

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