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Udyogini Scheme: Documents Needed, Eligibility, Application Process & More

10^th Dec 2025...

Published By : Team 811

Udyogini Scheme Key Takeaways

The Udyogini scheme is offered by the Karnataka State Women’s Development Corporation.
It helps women in starting self-employment by financially supporting small businesses.
Aid is offered in the form of collateral-free loans and subsidies on loans. It encourages skill development and entrepreneurship among women.

The Udyogini scheme is an innovative scheme sanctioned by the Government of Karnataka. Started in the year 1997-1998 and amended in the year 2004-2005, it supports women to become self-reliant and gain financial independence. It encourages them towards self-employment with opportunities focused on the trade and service sectors. The scheme helps women to take financial aid officially, rather than an informal one that requires paying a high rate of interest.

What is the Udyogini Scheme?

The Udyogini scheme by the Government of Karnataka offers financial assistance in the form of loans or subsidies to the women of Karnataka. The aid is offered by the Karnataka State Women’s Development Corporation (KSWDC) to run businesses or micro-enterprises. The district cooperative banks, commercial banks and Regional Rural Banks provide the loans.

Who Benefits From the Udyogini Scheme?

Women from all categories are eligible to receive benefits from the Udyogini scheme. However, the specific benefits are different depending on the category. The benefit is in the form of a loan and a subsidy.

Key Features & Benefits of Udyogini Scheme

Encourages women to become self-reliant through financial aid
Aims to uplift women from economically weak sections of society
Supports women with skill development training
Supports business activities such as:
- Chalk and crayon manufacture
- Bookbinding
- Notebooks manufacturing
- Papad, jam, jelly and pickles production
- Saree and embroidery work
- Dyeing and printing the clothes
- Woollen weaving and many more
Benefits that women can get depending on their category:
- Schedule Caste and Scheduled Tribe: Loans can be taken between INR 1 lakh and INR 3 lakh. The government will provide a 50% subsidy on the loan amount.
- General and Special Category: Loans can be taken up to INR 3 lakh. The government will provide 30% or a maximum of INR 90,000 as a subsidy, along with EDP training of 3 to 6 days for selected beneficiaries.

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Reservation/Priority/Preference in Udyogini Scheme

Preference is to be given to extremely poor, widows, destitute and physically challenged women.
Priority would be towards candidates possessing prior skill development training or vocational training conducted by any KSWDC or any other department.
10% of the allocated target has been reserved for applicants of members of World Bank-assisted Swashakthi or Stree Shakthi groups.

Eligibility Criteria of Udyogini Scheme

Applicant should identify as female
Applicant must be aged between 18 to 55 years for all categories
Applicant should be a Karnataka resident
Family income limit for women from the general and special categories is INR 1,50,000, and for the SC/ST category is INR 2 lakhs. No such limit for widowed or disabled women.
Applicant must not have defaulted on any past loan with any financial institution

Exclusions

Candidates not fulfilling the criteria as mentioned above are excluded from the benefit.

Documents Required For Udyogini Scheme

Essential documents to apply for the Udyogini Yojana scheme are as follows:

Aadhaar card
Residence proof, which can be a ration card or a voter ID
Project report outlining the business details along with quotations for machinery, equipment and other capital expenses
Aadhaar-seeded bank account details
Annual income and caste certificate provided by the concerned Tehsildar
Passport-sized photographs of the applicant

Application Process of the Udyogini Scheme

The Udyogini Yojana Scheme apply online or offline. Here are the insights into both of them:

Udyogini Yojana Scheme Apply Offline

Visit the nearest bank offering loans under the Udyogini Yojana scheme
Take the application form from the bank. Additionally, the forms are also available at the Deputy Director/CDPO
Fill it accurately and attach the necessary documents
Submit the form and documents to the same bank/KSFC branch
Documents and proposals will be verified to proceed with the application
Banks send a request letter to the Corporation for the release of subsidy, following which the bank releases the loan amount
After approval, the loan amount will be disbursed either to the applicant’s bank account or directly to the supplier’s account for buying the machinery, equipments or others

Udyogini Yojana Scheme Apply Online

Applicants can also visit the official website of the bank offering loans under the Udyogini scheme
Fill in the form and upload the necessary documents
CDPO will verify the application and forward it to the Selection Committee after spot verification
Application is further forwarded to the respective officials to release the loan

Check the Status of the Udyogini Scheme

You can check the status of the Udyogini Yojana scheme by contacting the bank. Alternatively, you can connect with the local Deputy Director or CDPO for the details. You may also contact the District Office of Karnataka State Women Development Corporation.

Benefit Disbursal of Udyogini Scheme

The benefits will be disbursed through subsidised loans provided by the bank or financial institution you have contacted.

Conclusion

Udyogini Yojana scheme is an initiative by the State Government of Karnataka. It offers financial aid to women to encourage self-reliance and financial independence. The scheme provides loans and subsidies to the eligible women. The aim is to discourage informal and high-interest-rate loans. The scheme supports the women-led businesses and microenterprises across trade and sector services.

FAQs

1. What is the interest rate for loans obtained under the Udyogini scheme?

The interest rates for loans received under the Udyogini Yojana scheme are 6%.

2. What is the repayment period for a loan received under the Udyogini scheme?

The loan taken under the Udyogini scheme should be returned within 36 months. It includes the moratorium period of 6 months during which the borrower is not required to start loan repayment.

3. How much time will it take for loan disbursal under the Udyogini scheme?

The loan disbursal under the Udyogini yojana scheme is generally done within 15 days of the completion of the application process.

4. Can I get the loan under the Udyogini scheme if I have taken a loan from other sources?

Yes, you can avail the benefits of the Udyogini yojana scheme even if you have taken a loan from other sources. However, the condition is to fulfil the eligibility criteria.

5. Can I open a bakery with the help of the Udyogini Yojana scheme?

Yes, opening a bakery or any other business belonging to the trade and service sector is permissible under the Udyogini scheme.

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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.