The Udyogini Scheme is a transformative initiative that empowers women entrepreneurs by providing them with financial support to start or grow their businesses. This scheme breaks down financial barriers, encourages women’s participation in entrepreneurship, and helps them become self-reliant. So, how can you make the most of this incredible opportunity? What are the benefits, eligibility requirements, and steps to apply?
Here we will guide you through everything you need to know about the Udyogini Scheme, helping you take that first confident step toward becoming a successful entrepreneur.
What is Udyogini Scheme?
The Udyogini Yojana is a government initiative that was introduced to provide financial support to women to help them establish their own businesses. The scheme primarily helps women from rural and underprivileged backgrounds, offering subsidized loans and facilitating entrepreneurship through training programs. It also helps foster self-reliance, enhances women’s participation in economic activities, and promotes inclusive development across various sectors.
Udyogini Scheme Details
Here are some of the important details of the Udyogini scheme:
| Category | Details |
| Interest Rate | Competitive, subsidized, or may even be waived for specific cases that qualify (10% – 12% for general cases, no interest for special cases like widows and disabled women) |
| Loan Amount | Up to ₹3 lakh |
| Annual Family Income Ceiling | ₹1.5 lakh or less (No income limit for widows or disabled women) |
| Collateral | Not required |
| Processing Fee | NIL |
| Age Group | 18 to 55 years |
| Eligible Business Activities | 88 business activities, including small-scale industries, manufacturing, trading, and retail |
| Method of Application | Online and Offline |
What are the Benefits of Udyogini Yojana Scheme?
The Udyogini Yojana is a government initiative to empower women entrepreneurs in India by providing them with financial support, capacity-building resources, and skills training to foster economic independence. The scheme aims to promote women’s participation in business and entrepreneurship, enabling them to contribute to the country’s overall economic growth. Here are some of the benefits of the Udyogini Yojana:
1. Easy Access to Loans
The Udyogini Yojana offers women the opportunity to avail loans up to ₹3 lakh to set up small-scale businesses. This necessary capital enables women to start a business and encourages them to pursue their entrepreneurial aspirations.
2. Can Avail Interest-Free Loans for Agricultural Businesses
Women entrepreneurs looking to start businesses in the agricultural sector can benefit from interest-free loans under the Udyogini Scheme. This provision supports women in rural areas, helping them establish an agriculture-based business without the financial burden of high interest rates.
3. Wide Industry Coverage
The scheme supports women in setting up businesses across 88 different types of small-scale industries. This broad coverage allows women from diverse backgrounds to choose businesses that align with their skills, interests, and resources, promoting inclusivity and varied entrepreneurial opportunities.
4. Subsidy on Loan Repayments
Udyogini Yojana offers a 30% subsidy on the loan amount for women entrepreneurs, significantly reducing the repayment pressure. For women from scheduled castes (SC) and scheduled tribes (ST), the subsidy can go up to 50% of the loan amount, providing added financial relief.
5. Entrepreneurship Development Training
The scheme emphasizes capacity building by offering entrepreneurship development programs (EDP) to selected individuals. These programs provide women with essential business skills, including business planning, pricing, costing, feasibility assessments, and more. This training ensures that women are well-prepared to manage and grow their enterprises effectively.
6. Special Provisions for Vulnerable Categories
The Udyogini Yojana Scheme has special provisions for women from vulnerable categories, including widows, differently-abled women, and destitute women, by offering them interest-free loans. This feature ensures that women who are economically or socially at a disadvantage receive the support they need to start and run their businesses.
7. Transparent Evaluation Process
The application process for the Udyogini Yojana is transparent, ensuring a smooth and fair evaluation of all applicants. This reduces the chances of bias and ensures that only eligible applicants benefit from the scheme.
8. Income Limit and Eligibility Criteria
Women from families with an income below ₹1,50,000 per year are eligible for the scheme, making it accessible to a large segment of the population. Women from special and general categories can also avail loans, with subsidies ranging from 30% to 50%, depending on their category.
Eligibility Criteria for Udyogini Scheme
Here are some of the common eligibility criteria required to apply for this scheme:
1. Gender Requirement:
The scheme is exclusively available to women entrepreneurs, emphasizing their participation in economic activities.
2. Age Limit:
Applicants must be between 18 and 55 years of age. However, widowed, disabled, or destitute women are excluded from the upper age limit.
3. Income Criteria:
The annual family income of the applicant should be less than ₹1.5 lakh for general and special categories. There is no income limit for women who are widowed, disabled, or destitute.
4. Credit History:
Applicants must have a good credit score and no record of defaulting on loans from any financial institution.
5. Business Activity:
The scheme supports various business activities, including small-scale industries, retail, manufacturing, trading, and self-employment ventures. The business must fall under the 88 approved categories under the scheme.
6. Citizenship:
The applicant must be a citizen of India.
7. Target Groups:
The scheme is open to women from SC/ST categories and other backward sections, in addition to the general category.
Documents Required to Avail of Loans under the Udyogini Scheme
To apply for a loan under this scheme, applicants need to submit the following documents to the concerned financial institution:
- Completed Application Form: A fully filled application form along with the latest passport-sized photographs
- Identity and Address Proof: Aadhaar Card, Voter ID Card, or Ration Card
- Income Proof: Family’s annual income certificate, as required by the lender
- Below Poverty Line (BPL) Card: If applicable, applicants must provide a BPL card
- Caste Certificate: For applicants belonging to reserved categories (SC/ST), this certificate is mandatory to avail of interest rate benefits or other relaxations
- Bank Details: A copy of the passbook with account details, including the account number, IFSC code, and MICR code.
- Detailed Project Report (DPR): A comprehensive report or proposal for the business activity, specifying financial requirements such as capital expenditures and machinery quotations
- Training/Experience Certificate: Proof of any relevant training or experience for the business activity the loan is applied for
- Quotations for Equipment or Machinery: Financial quotations or estimates for machinery, equipment, or other capital expenses related to the business
- Additional Documents: Any other document that may be specified by the financial institution or lender
How to Apply for Udyogini Scheme?
For the Udyogini scheme, you can apply either online or offline. Here’s how you can do it:
1. Online Application Process
- Visit the Official Website: Go to the official website of a bank or financial institution offering loans under the Udyogini Scheme.
- Locate the Udyogini Section: Find the Udyogini Scheme section and click on the application link, usually labeled “Apply Now.”
- Fill Out the Application Form: Enter all the required details in the form accurately.
- Attach Necessary Documents: Upload scanned copies of the required documents, such as identity proof, income proof, and business project details.
- Submit the Application: Submit the completed form online. The concerned authorities may conduct a site verification of your proposed business.
- Verification and Approval: The bank or the financial institution will review your application and verify the submitted documents. Upon approval, a request will be made to release the subsidy or loan amount.
- Disbursement of Loan: Once approved, the loan amount will be credited directly to your bank account or the supplier’s account if the loan is for equipment or machinery purchases.
2. Offline Application Process
- Obtain the Application Form: Visit the Deputy Director’s Office, CDPO office, or the nearest branch of a participating bank or financial institution to collect the application form. You can also download it from the financial institution’s website.
- Prepare Necessary Documents: Compile all the required documents, including identity proof, income proof, and a detailed project proposal.
- Visit the Bank or Lender: Go to the nearest branch of a bank or a financial institution offering the Udyogini Scheme with the filled-out application form and supporting documents.
- Submit the Application: Hand over the application and documents to the bank or financial institution officials for review.
- Verification Process: The bank will assess your documents, verify your project proposal, and may forward the request to higher authorities or the corporation for subsidy release.
- Approval and Disbursement: Once your application is approved, the loan amount will be credited to your account or directly to the supplier’s account for approved expenses.
What is the Interest Rate for Udyogini Yojana Scheme?
The Udyogini Yojana helps women start or grow their small businesses by offering loans at low or no interest. For women who are disabled, widows, or belong to other communities, the scheme provides interest-free loans, making it easier for them to become financially independent.
For women from other categories, the interest rate is usually between 10% to 12%, depending on the bank or financial institution providing the loan. The government also offers a 30% subsidy based on the family’s annual income, which can reduce the loan burden further.
This scheme is a great way for women to take a step towards self-reliance and build their entrepreneurial dreams without worrying about high interest rates.
Summary
The Udyogini Scheme empowers women to take charge of their entrepreneurial dreams by offering them financial support and opportunities for growth. By offering them loans at subsidized rates, the scheme helps in fostering economic independence and self-reliance among women entrepreneurs. Whether you’re starting a small business or expanding an existing one, this scheme provides the much-needed support to turn ideas into reality.
However, if you are looking for additional financial support with flexible repayment options, LoanTap’s MSME loans can be the perfect solution for your business needs. With quick approvals, minimal documentation, and loan amounts up to ₹10 lakh, LoanTap ensures you have access to hassle-free funding to help you grow your business.
Frequently Asked Questions
Is collateral required for availing loans under the Udyogini Scheme?
No, loans under the Udyogini Scheme are generally collateral-free, making it easier for women to access funding without pledging any assets.
What is the Udyogini Scheme business list?
The Udyogini Scheme supports businesses like tailoring and garment businesses, grocery stores or kirana shops, cattle rearing and dairy farms, handicrafts and traditional art businesses, food processing and packaging units, agriculture-based businesses (e.g., seed supply, farming tools), beautician services and parlours, and small-scale retail shops.
What are Udyogini loans?
Udyogini loans are financial assistance provided to women entrepreneurs under the Udyogini Scheme to help them establish or expand their businesses. These loans are generally offered at subsidized interest rates with no collateral requirements.
How to apply for the Udyogini Scheme?
Women can apply through banks or financial institutions under the scheme. You may also apply through the Women’s Development Corporations in respective states.
Can the loan amount under the Udyogini Scheme be used for working capital?
Yes, the loan can be used for working capital requirements such as purchasing raw materials, managing inventory, or daily business operations.
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