What is the Udyogini Scheme?

It is a government initiative by Karnataka to provide financial assistance to women for self-employment and entrepreneurship.

Who is eligible for the Udyogini Scheme?

Female residents of Karnataka, aged 18-55, with an annual family income below ₹1,50,000, except for widows and disabled women.

What is the maximum loan amount under the Udyogini Scheme?

The scheme provides loans up to ₹3,00,000.

Are there subsidies for SC/ST women under the Udyogini Scheme?

Yes, SC/ST women receive a 50% subsidy on loans up to ₹3,00,000, with an income ceiling of ₹2,00,000 annually.

How can I apply for a loan under the Udyogini Scheme?

You can apply online via participating bank websites or offline at banks or Karnataka State Women’s Development Corporation (KSWDC) offices.

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How The Udyogini Scheme Is Empowering Women Entrepreneurs In Karnataka?

Pragya Pathak

Author

Updated: 08-04-2025 at 5:30 PM

The government of Karnataka has launched the Udyogini Scheme (उद्योगिनी योजना), which is of great importance in helping women to attain economic self-dependence and independence through self-employment. It started in 1997-98 and was modified in 2004-05 to provide financial assistance to women who are mainly involved in trade and service sector activities.

Read the article to learn more about the scheme, ranging from its meaning and objectives to eligibility criteria and application process.

Overview

Below is a table that summarises the major components of the scheme that one should know about.

Name of the scheme	Udyogini Yojana
Launched by	State govt of Karnataka
Objective	To help women attain economic independence through self-employment
Target group	Women residing in Karnataka
Loan amount	Up to Rs. 3 lakh
Application Process	Offline/Online

What Is Udyogini Yojana?

The Udyogini Yojana is a state government scheme launched by the state government of Karnataka, especially for women. The scheme aims to empower women by giving them ways to be financially independent. The scheme encourages women to become entrepreneurs and provides them with loans as well so that they can start their small businesses.

Objectives

The objective of the Udyogini scheme is vast, making it a desirable scheme to boost women’s empowerment in the country. Let’s have a look at the aims and objectives of the scheme.

The Sarkari Yojana is specially designed for women from economically backward or minority communities.
The scheme provides financial assistance to women entrepreneurs to kickstart their respective small businesses.
The broader aim of the scheme is to increase the employment rate of women and encourage them to become entrepreneurs.

What Are The Benefits And Subsidies Under The Udyogini Scheme For Women Entrepreneurs?

The Udyogini Scheme provides substantial benefits and subsidies to women entrepreneurs in Karnataka. Several of its key benefits are as follows:

SC/ST Female Subsidy: This govt scheme, which aims at Scheduled Caste (SC) and Schedule Tribe (ST) girls as its target group, offers them a subsidy of 50% on the loan amount of between ₹1,00,000 as the minimum unit cost to ₹3,00,000 as maximum. The income ceiling for these categories is ₹2,00,000 annually.
General/Special Category Subsidy: There is ₹90,000 or 30% of that figure in terms of subsidy and a maximum unit price of ₹3,00,000 for special/general category women. Similarly, it entails an Entrepreneur Development Programme (EDP) training for selected beneficiaries.

These benefits are aimed at motivating females from various backgrounds towards self-employment so they can be financially independent.

What Are The Eligibility Criteria For Udyogini Scheme (उद्योगिनी योजना) Business Loans In Karnataka?

Those who wish to take advantage of the Udyogini Scheme must meet certain conditions. The eligibility criteria for the state government scheme are mentioned below in points:

The applicant should be female.
Family income for the applicant should not exceed ₹1,50,000 per annum for general and special categories of women. However, widows and disabled females have no limitations on their incomes.
The age range for candidates is 18 - 55 years.
A person should live in Karnataka permanently.
The provision requires that loan applicants have never defaulted on any financial institution in the past.

With the adoption of this criterion, the Udyogini Scheme will be able to cover those women who are most deserving and needy and who can venture into business with confidence.

How To Apply For Udyogini Scheme (उद्योगिनी योजना) Loans In Karnataka?

The process of applying for the Udyogini Scheme is easy and can be done either over the Internet or by filling out an application form in hard copy. Here is how to go about it:

Offline Application Process:

Step 1: Visit the nearest bank with all the necessary documents and fill out the application form. These forms are available at Deputy Director/CDPO offices and also on banks’ websites that provide loans. Otherwise, you can obtain it from KSWDC.

Step 2: Deliver the completed application form and necessary certificates to the nearest bank or KSFC branch. The project proposal and documents will be verified by bank officials or KSFC staff before loan applications are processed. On approving the loan request, a request letter is sent to the corporation for releasing subsidy after that amount is requested as the loan is released by the bank.

Step 3: After your loan application has been approved, you can disburse either into your account or directly into the supplier’s account for machinery/equipment/any other capital expenditure.

Online Application Process:

Step 1: Apply online for the loan by visiting the official website of banks lending through the Udyogini Scheme. CDPO examines the applications and forwards them to the Selection Committee after spot verification.

Step 2: The Selection Committee examines and forwards applications to banks for loan release. Bank /KSFC officials then verify documents and project proposals.

Step 3: When approved, the loan amount is disbursed directly into the applicant’s bank account or supplier’s account for necessary capital expenditure.

What Are The Required Documents For Udyogini Scheme Business Loan Application?

To apply for the Udyogini Scheme, you must present some supporting documents. The list of those documents is mentioned below for one’s reference:

Three passport-size photographs of the applicant.
Certificate regarding training/experience in the activity under which the loan is sought.
Detailed Project Report (DPR) of activity for which financial assistance is sought.
Ration Card/Voter ID Card.
Annual Income Certificate of family.
Caste Certificate (in case of SC/ST Applicants).
Quotations for machinery, equipment, and other capital expenses.

These papers are important as they facilitate the verification process to ensure the prompt processing of a loan application.

How Udyogini Scheme (उद्योगिनी योजना) Helps Women Achieve Economic Independence?

Through the Udyogini State Government Scheme, women in Karnataka to achieve economic independence through the provision of necessary financial support to start and run their businesses. The government loan scheme provides subsidies and easier access to credit, which enables women to engage in income-generating activities, hence becoming self-reliant and economically stable. This program also prioritises those women who are disadvantaged, thus ensuring that support goes to those who need it most.

Conclusion

The Udyogini scheme is a great tool for empowering the women of Karnataka, where they can get all the resources needed for entrepreneurial success. By making an easy application process as well as giving hefty subsidies, this subsidy scheme makes sure that more women will be involved in the economic growth of the state. So, what are you waiting for? Please apply for the scheme if you’re eligible and get your financial independence under your control.

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