Udyogini means Women Entrepreneur and Government has initiated this scheme for the welfare and development of Indian Women Entrepreneurs. Udyogini Yojana has been implemented by Women Development Corporation under the Government of India. This scheme promotes and motivates women’s entrepreneurship among the poor by providing financial support to women for doing business. Udyogini Scheme helps in the enhancement of income of an individual and families and contributes to the overall growth of the country.
In recent years, there has been a significant growth in the number of women entrepreneurs in India. Nevertheless, despite their massive growth in the business world, women entrepreneurs face many problems, including limited access to funds.
The government has launched several initiatives to promote women’s empowerment in India. One such scheme is the Udyogini scheme, which offers financial assistance to women in rural and under-developed areas.
What is the Udyogini Scheme?
One of the significant concerns of the Government of India is to empower the Indian women and make them Atma Nirbhar. Hence, the government launched the Udyogini scheme to provide financial assistance to budding women entrepreneurs in underdeveloped and rural areas of India.
Moreover, this scheme empowers poor women entrepreneurs to start businesses with financial assistance. Under this scheme, beneficiaries can avail business loans to start businesses in different sectors. The government has directed financial institutions to offer interest-free business loans to women from various sections of society.
Udyogini Scheme Details
| Interest Rate | Competitive, subsidized or free for special cases |
| Loan Amount | Max. up to Rs. 3 lakh |
| Annual Family Income | Rs. 1.5 lakh or less |
| No income limit | For Widowed or disabled women |
| Collateral | Not required |
| Processing Fee | Nil |
Eligibility Criteria for Loans under Udyogini Scheme
- Business Loan available for only Women Entrepreneurs
- Should not have defaulted on any past loan with any financial institution
- Applicant with good credit score and repayment capability
Documents required
- Duly filled Application Form with passport-sized photographs
- Applicant’s Aadhaar Card, Birth Certificate
- Applicant’s Below Poverty Line (BPL) card & Ration Card
- Address and Income Proofs
- Caste Certificate, if applicable
- Copy of Bank passbook (account, bank and branch names, holder name, IFSC and MICR)
- Any other document required by the bank/NBFC
Eligible Entities
Udyogini Yojana offered by several banks can be availed by aspiring women entrepreneurs across the nation. This scheme is exclusively initiated to promote women’s entrepreneurship and financial empowerment. Under this scheme, subsidized loans are offered for women entrepreneurs from rural areas.
How to Apply for the Udyogini Scheme?
Online Method- Here are a few simple steps applicants can follow to apply for the Udyogini scheme online:
Step 1: Visit the bank’s official website offering loans under the Udyogini scheme.
Step 1: Visit the bank’s official website offering loans under the Udyogini scheme.
Step 2: Look for the Udyogini scheme option from the navigation bar and click the link to complete the application form.
Step 3: CDPO will scrutinise your application and forward it to the selection committee after spot verification.
Step 4: After that, they will examine your application form and forward it to the bank.
Step 5: They will verify your documents and project proposal to process your loan application.
Step 6: After successful verification, they will send a request letter to the corporation for the subsidy release.
Step 7: The bank will release the loan amount once they approve your loan application.
Step 8: They will disburse the loan amount directly to your bank account or supplier’s account for equipment, machinery or other capital expenditures.
Offline Method- You can follow these simple steps to apply for the Udyogini scheme via offline mode:
Step 1: Get the application form from the Deputy Director or CDPO office or visit the bank’s official website that offers loans under the Udyogini scheme.
Step 2: You must visit the nearest bank that offers a loan under the Udyogini scheme with all the required documents.
Step 3: Fill out the application form to submit it to the officials along with the required documents.
Step 4: They will verify your loan requests and examine documents and project proposals.
Step 5: After that, they will process your loan application and send a request letter to the corporation to release the subsidy.
Step 6: Once they approve your loan application, the bank disburses the amount to your bank account or directly to suppliers’ accounts for machinery, equipment and other capital expenditures.
Udyogini Scheme Interest Rate
Udyogini scheme offers interest-free loans to women seeking to finance their small businesses, making them Atma Nirbhar. The disabled, Dalit and widows are eligible for interest-free loans under this scheme, and women belonging to other categories have to pay 10% to 12% interest on the loan amount.
However, the financial institutions regulate the interest rate from where you are applying for this scheme. Moreover, under this scheme, you can get a 30% subsidy on your family’s annual income.
List of 88 Business Categories supported under the Udyogini Scheme
- Agarbatti Manufacturing
- Audio & Video Cassette Parlour
- Bakeries
- Banana Tender Leaf
- Bangles
- Beauty Parlour
- Bedsheet & Towel Manufacturing
- Book Binding And Note Books Manufacturing
- Bottle Cap Manufacturing
- Cane & Bamboo Articles Manufacturing
- Canteen & Catering
- Chalk Crayon Manufacturing
- Chappal Manufacturing
- Cleaning Powder
- Clinic
- Coffee & Tea Powder
- Condiments
- Corrugated Box Manufacturing
- Cotton Thread Manufacturing
- Crèche
- Cut Piece Cloth Trade
- Dairy & Poultry Related Trade
- Diagnostic Lab
- Dry Cleaning
- Dry Fish Trade
- Eat-Outs
- Edible Oil Shop
- Energy Food
- Fair-Price Shop
- Fax Paper Manufacturing
- Fish Stalls
- Flour Mills
- Flower Shops
- Footwear Manufacturing
- Fuel Wood
- Gift Articles
- Gym Centre
- Handicrafts Manufacturing
- Household Articles Retail
- Ice Cream Parlour
- Ink Manufacture
- Jam, Jelly & Pickles Manufacturing
- Job Typing & Photocopying Service
- Jute Carpet Manufacturing
- Leaf Cups Manufacturing
- Library
- Mat Weaving
- Match Box Manufacturing
- Milk Booth
- Mutton Stalls
- Newspaper, Weekly & Monthly Magazine Vending
- Nylon Button Manufacturing
- Old Paper Marts
- Pan & Cigarette Shop
- Pan Leaf or Chewing Leaf Shop
- Papad Making
- Phenyl & Naphthalene Ball Manufacturing
- Photo Studio
- Plastic Articles Trade
- Pottery
- Printing & Dyeing of Clothes
- Quilt & Bed Manufacturing
- Radio & TV Servicing Stations
- Ragi Powder Shop
- Readymade Garments Trade
- Real Estate Agency
- Ribbon Making
- Sari & Embroidery Works
- Security Service
- Shikakai Powder Manufacturing
- Shops & Establishments
- Silk Thread Manufacturing
- Silk Weaving
- Silk Worm Rearing
- Soap Oil, Soap Powder & Detergent Cake Manufacturing
- Stationery Shop
- STD Booths
- Sweets Shop
- Tailoring
- Tea Stall
- Tender Coconut
- Travel Agency
- Tutorials
- Typing Institute
- Vegetable & Fruit Vending
- Vermicelli Manufacturing
- Wet Grinding
- Woollen Garments Manufacturing
FAQs
What is the purpose of the Udyogini Scheme?
To promote women’s entrepreneurship and encourage the Small Scale Industry (SSI) sector by creating more employment opportunities and growth.
How much loan I can get under the Udyogini scheme?
The maximum loan amount offered to a women entrepreneur under the Udyogini scheme is up to Rs. 3 lakh.
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