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 contribute to the overall growth of the country.
| Udyogini Scheme Details – Feb 2022 | |
| 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 |
Note: The mentioned interest rates are subject to change and depend on the sole discretion of the Government of India and respective banks or NBFCs.
Interest-free loans are offered to women of all sections of the society without any discrimination or preference. Udyogini Scheme is primarily offered by Karnataka State Women’s Development Corporation (KSWDC), Punjab and Sind bank, Saraswat Bank, as well as several other private and public sector banks and leading NBFCs. This scheme focuses on organizing and undertakes skill development training programs for women, besides offering financial assistance. Below mentioned are key details of this scheme:
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
Who can Apply for a Loan under Udyogini Yojana Scheme?
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 a Business Loan under the Udyogini Scheme?
To apply for a business loan under this scheme or yojana, applicants can visit the nearest bank with all the required documents and fill an application form to proceed with bank formalities. Another option is that applicants can apply for loans online by visiting the official website of banks offering loans under the Udyogini scheme.
Below mentioned are the features and eligibility criteria for loans under this scheme from leading banks and NBFCs:
Udyogini Scheme from Bajaj Finserv
| Interest Rate | Interest-free loan to women from all sections of the society |
| Loan Amount | Max. up to Rs. 3 lakh |
| Loans available for | 88 SSIs – Small Scale Industries |
| Subsidy | Up to 30% |
| Family Income Criteria | Should be less than Rs. 1.5 lakh |
| Training for Skill Development | Available |
Udyogini Scheme from Saraswat Bank
| Micro Enterprises | Small Scale Enterprises | Medium Enterprises | |
| Interest Rate | 11.15% onwards | 11.15% onwards | 11.15% onwards |
| Loan Amount | Up to Rs. 2 lakh | From Rs. 2 lakh up to Rs. 50 lakh | From Rs. 50 lakh up to Rs. 100 lakh |
| Processing Fee | Rs. 5,000 | · Upto Rs. 10 lakh – Rs. 5000· Above Rs. 10 lakh and Upto Rs. 25 lakh – Rs. 7000· Above Rs. 25 lakh – Rs. 10000 | Rs. 10,000 |
| Repayment Tenure | 6 Years | 6 Years | 7 Years |
| Margin | Nil | 20%-25% lower than the Bank’s norm | 20%-25% lower than the Bank’s norm |
| Security | Hypothecation + Guarantee of Spouse or a Family member wherever required. | Hypothecation + 2 Guarantors + Collateral Security (25%) | Hypothecation + 2 Guarantors + Collateral Security (30%) |
Udyogini Scheme from Punjab & Sind Bank (PSB)
| Interest Rate – Vyapar Loan | 9.65% onwards (Working Capital Loan) |
| Loan Amount | Depends on business requirements |
| Processing Fee | Nil |
| Margin | Nil up to Rs. 25,000 |
| Security/Collateral | Nil, up to Rs. 25,000 |
| Loan Type | Term Loans and Working Capital Loans |
Udyogini Scheme from Karnataka State Women’s Development Corporation (KSWDC)
| Interest Rate | As per business requirements |
| Age Criteria | Min. 18 years and Max. 45 years |
| Loan Amount | Up to Rs. 3 lakh |
| Subsidy | Up to 50%, family income limit to be less than Rs. 2 lakh for SC/ST category |
| Family Income Criteria | No limit for women under special category and for general category – Family income should be less than Rs. 40,000 |
| EDP Training provided | For 3 days, before loan disbursal |
Note: All the above-mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the banks, NBFCs and RBI. GST and service tax shall be levied extra on the mentioned charges. Interest rates are updated as on Feb 2022.
Funding support can be availed by businesses engaged in the SSI sector, retailers, manufacturers, self-employed professionals, traders, etc. Some of the leading banks offer interest-free loans to 88 categories of SSI. Below mentioned is an exhaustive list of 88 categories that fall under SSI sector that are supported under the Udyogini Scheme:
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
Loans under Udyogini Scheme are offered by various financial institutions like co-operative banks, Regional Rural Banks (RRBs), and commercial banks at competitive interest rates. The scheme provides subsidies from the corporation for running business activities to only women entrepreneurs. Udyogini Scheme application form is available at the bank’s official websites.
FAQs on Udyogini Scheme
Q. What is the purpose of the Udyogini Scheme?
Ans. To promote women’s entrepreneurship and encourage the Small Scale Industry (SSI) sector by creating more employment opportunities and growth.
Q. How much loan I can get under the Udyogini scheme?
Ans. The maximum loan amount offered to a women entrepreneur under the Udyogini scheme is up to Rs. 3 lakh.
Q. Where Can I get a loan under this scheme?
Ans. Business loans offered under Udyogini schemes are offered by leading financial institutions. Some of the banks and NBFCs offering business loans under this scheme include Bajaj Finserv, Saraswat bank, Punjab and Sind Bank, Karnataka State Women’s Development Corporation (KSWDC), and many more.
