The Udyogini Scheme for Women Entrepreneurship

Last Updated : July 11, 2025, 6:20 p.m.

The Udyogini Scheme is a transformative initiative by the Government of India aimed at fostering women’s entrepreneurship, particularly in rural and underdeveloped areas. Launched by the Karnataka State Women’s Development Corporation (KSWDC) in 1997-98 and later expanded nationwide, the scheme provides financial assistance, skill development, and business support to women seeking to start or grow small-scale businesses. The word “Udyogini,” meaning “women entrepreneur” in Hindi, reflects its core mission of promoting self-reliance and economic empowerment among women.

This article provides a comprehensive overview of the Udyogini Scheme, including its objectives, eligibility criteria, benefits, application process, and supported industries, offering a clear guide for aspiring women entrepreneurs.

Objectives of the Udyogini Scheme

The Udyogini Scheme is designed to address financial and skill-based barriers faced by women, particularly those from economically weaker sections. Its primary objectives include:

• Encouraging Entrepreneurship : Provide financial assistance to women to start or expand micro-enterprises and small businesses.
• Promoting Financial Inclusion : Offer affordable loans, including interest-free options for special categories, to reduce reliance on high-interest private lenders.
• Fostering Skill Development : Equip women with practical business skills such as planning, pricing, costing, and feasibility assessment.
• Empowering Marginalized Women : Support women from Scheduled Castes (SC), Scheduled Tribes (ST), widows, disabled, and destitute categories with tailored financial benefits.
• Boosting Economic Growth : Enhance individual and family incomes while contributing to national economic development through women-led micro-enterprises.

Eligibility Criteria

To qualify for the Udyogini Scheme, applicants must meet the following criteria:

• Gender : Must be a woman.
• Age : Between 18 and 55 years for general applicants. No upper age limit for widows, disabled, or destitute women.
• Income : Annual family income must be less than ₹1.5 lakh for general and special categories. For SC/ST women, the limit is ₹2 lakh. Widows, disabled, or destitute women are exempt from income limits.
• Credit History : Applicants should have a good credit score and no record of loan default. Some institutions may accommodate those with limited credit history.
• Business Type : The business must fall under one of the 88 supported small-scale industries, such as retail, manufacturing, trading, agriculture, or self-employment ventures.
• Residency : Applicants must be permanent residents of the state where they apply (e.g., Karnataka for KSWDC-administered loans).

Key Features and Benefits

The Udyogini Scheme offers a range of benefits to make entrepreneurship accessible and sustainable for women:

• Loan Amount : Up to ₹3 lakh to start or grow a business, covering working capital, equipment, or machinery purchases.
• Interest Rates : General category women receive loans at competitive rates (typically 10–12%). Special categories (widows, disabled, SC/ST, or destitute women) may qualify for interest-free loans.
• Loan Subsidy : A 30% subsidy on loans for general and special category women, with up to 50% for SC/ST women, reducing repayment burdens.
• No Collateral : Loans do not require collateral, making them accessible to women with limited assets.
• Skill Development : Training in business management, financial literacy, pricing, costing, and feasibility analysis to ensure business success.
• Supported Industries : Covers 88 small-scale industries, including tailoring, bakeries, grocery stores, fisheries, handicrafts, papad making, libraries, and agricultural ventures.
• Transparent Evaluation : A clear and fair application process ensures deserving candidates are selected.

These features make the Udyogini Scheme a vital tool for women seeking financial independence through entrepreneurship.

Application Process

The Udyogini Scheme offers both online and offline application options, depending on the participating bank or financial institution. Below are the steps to apply:

Online Application

1. Visit the Official Portal : Go to the website of a participating bank (e.g., Punjab and Sind Bank, Saraswat Bank) or the state’s Women’s Development Corporation (e.g., kswdc.karnataka.gov.in for Karnataka).
2. Locate the Udyogini Scheme Section : Find the scheme details and application form.
3. Fill Out the Form : Enter personal details (name, address, age, income) and business plan details, including the type of business and budget.
4. Upload Documents : Submit scanned copies of required documents (see below).
5. Submit Application : Save the acknowledgment or reference number for tracking.
6. Verification : The Child Development Project Officer (CDPO) conducts spot verification, followed by evaluation by a selection committee.
7. Loan Processing : The bank verifies documents and project proposals, then requests subsidy approval from the Women’s Development Corporation.
8. Disbursement : Upon approval, the loan is credited to the applicant’s bank account or directly to suppliers for equipment/machinery.

Offline Application

1. Obtain the Form : Download the application form from the bank’s or KSWDC’s website, or collect it from a participating bank branch, KSWDC office, or CDPO.
2. Complete the Form : Fill in all required details accurately.
3. Gather Documents : Attach necessary documents (listed below).
4. Submit : Submit the form and documents to the nearest participating bank or KSWDC office.
5. Verification and Disbursement : Follow the same verification and disbursement process as the online method.

Required Documents

• Duly filled application form with 2–3 passport-sized photographs.
• Identity proof (Aadhaar card, birth certificate, or voter ID).
• Address proof.
• Income proof (if applicable).
• Below Poverty Line (BPL) card or ration card (if applicable).
• Caste certificate (for SC/ST applicants).
• Bank passbook (with account details, bank/branch name, IFSC, and MICR codes).
• Business plan or project proposal.
• Additional documents as required by the bank or NBFC.

Conclusion

The Udyogini Scheme is a powerful tool for women seeking to break free from financial dependence and build sustainable businesses. By offering accessible loans, subsidies, and skill training, it empowers women to become “Atma Nirbhar” (self-reliant) while contributing to India’s economic growth. Whether you’re starting a tailoring shop, a grocery store, or an agricultural venture, the Udyogini Scheme provides the support needed to turn your entrepreneurial dreams into reality.