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What is the Udyogini Scheme?

Updated on July 11, 2025

The Udyogini Scheme is a government-backed financial initiative designed to support and empower women entrepreneurs from economically weaker sections, especially in rural and underdeveloped areas. Under this scheme, eligible women can avail subsidised loans up to Rs. 3 lakh to start or expand small-scale businesses across 88 eligible sectors.

Launched by the Karnataka State Women's Development Corporation (KSWDC), the scheme has now been extended nationwide with support from various banks and NBFCs. It also includes interest-free loans for special categories like SC/ST women, widows, and disabled women.

Udyogini Scheme Highlights

Feature	Details
Interest Rate	Subsidised or interest-free for special categories
Maximum Loan Amount	Rs. 3 lakh
Subsidy	30% to 50%, depending on category
Processing Fees	Nil
Collateral	Not required
Repayment Tenure	Up to 7 years
Training & Support	Skill development and EDP training available

Who Launched the Udyogini Scheme?

The scheme was initially launched by Karnataka State Women's Development Corporation (KSWDC) and has since been supported by the Central Government to boost women-led entrepreneurship across India.

Key Benefits of the Udyogini Scheme

Promotes entrepreneurship among women from BPL and low-Income groups
Offers interest-free loans for SC/ST, widows, and disabled women
Provides collateral-free Business loans
Offers subsidies up to 50% based on category
Covers 88 small-scale business sectors
Includes skill development and training programs

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Eligible Business Sectors

The scheme supports businesses in:

Agriculture and allied activities
Retail and trade
Handicrafts and tailoring
Beauty parlours
Small Manufacturing and services

Eligibility Criteria for Udyogini Scheme

Criteria	Details
Gender & Age	Women aged 18 to 55 years
Residency	Permanent resident of Karnataka (for KSWDC version)
Income Limit	General & Special Categories: Up to Rs. 1.5 lakh/year

SC/ST: Up to Rs. 2 lakh/year
Widows/Disabled: No income limit

Loan & Subsidy Structure

Category	Subsidy %	Max Subsidy	Income Limit
SC/ST Women	50%	Rs. 1.5 lakh	Up to Rs. 2 lakh/year
Widows/Disabled	30%	Rs. 90,000	No income limit
General Category	30%	Rs. 90,000	Up to Rs. 1.5 lakh/year

How to Apply for Udyogini Scheme

Online Process:

Identify a participating Bank/NBFC (e.g., Bajaj Finserv, Saraswat Bank)
Visit the bank’s official website
Fill the application form
Upload required documents (ID proof, BPL card, project report, etc.)
Wait for verification and loan disbursal

Offline via KSWDC

Download the form from kswdc.karnataka.gov.in or visit CDPO office
Submit the filled form with required documents
The bank processes the loan and requests subsidy approval from KSWDC
After approval, the loan is disbursed.

Required Documents

Application form + passport photos
aadhaar card & birth certificate
BPL card/income certificate
Residential proof (ration card/Voter ID)
Project report
Bank account details
Caste certificate (for SC/ST applicants)
Educational qualification proof (if applicable)

Banks & NBFCs Offering Udyogini Scheme

Saraswat Bank:

Interest: 11.90% p.a. onwards
Loan: Up to Rs. 200 lakh
Tenure: Up to 7 years
Security: Based on amount

Punjab & Sind Bank:

Interest: 11.50% p.a. onwards
Processing Fee: Nil
Tenure: Up to 7 years
Security: Nil for loans up to Rs. 25,000

Bajaj Finserv:

Interest: 10% - 12%
Loan: Up to Rs. 3 lakh
Family Income: < Rs. 1.5 lakh
Training: Provided

KSWDC:

Interest: As per profile
Subsidy: 30% (General), 50% (SC/ST)
EDP Training: Available

Udyogini Scheme vs Other Women-Centric Loans

Scheme	Loan Limit	Target Group	Collateral Required
Udyogini Scheme	Up to ₹3 lakh	Women entrepreneurs	No
Mudra Yojana	Up to ₹10 lakh	Small and micro-businesses	No
Stand-Up India	₹10 lakh – ₹1 crore	SC/ST & Women	No
Annapurna Scheme	Up to ₹50,000	Women in food businesses	No

FAQs on Udyogini Scheme

Q1. Who is eligible for Udyogini Scheme?

A: Women aged 18-55 years from economically weaker sections.

Q2. What is the maximum loan amount?

A: Up to Rs. 3 lakh.

Q3. Is collateral required?

A: No. Loans are collateral-free.

Q4. What subsidy is available?

A: 30%-50% depending on category.

Q5. Can I apply online?

A: Yes, via participating bank or NBFC websites.

Q6. Which banks offer the scheme?

A: Saraswat Bank, Punjab & Sind Bank, Bajaj Finserv, KSWDC.

Q7. What is the repayment tenure?

A: Up to 7 years.

Conclusion

The Udyogini Scheme is a powerful initiative to uplift women through Financial Inclusion and entrepreneurship. With easy access to loans, subsidy benefits, and no collateral requirement, it opens doors to self-reliance for thousands of women. By promoting 88+ business sectors and enabling training, the scheme plays a vital role in India's women-led growth journey.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.