Udyogini Scheme

Udyogini Scheme (उद्योगिनी योजना)

The Udyogini Scheme is a progressive initiative launched by the Government of Karnataka to empower women by facilitating self-employment opportunities. By focusing on the trade and service sectors, this scheme aims to enhance economic independence among women. Additionally, it offers subsidies on loans for women aspiring to establish their businesses or micro-enterprises through various financial institutions.

Overview of the Udyogini Scheme

Initiated in the financial year 1997-1998 and revised in 2004-2005, the Udyogini Scheme is designed to promote self-reliance among women in Karnataka. The scheme provides financial assistance in the form of subsidized loans from the Karnataka State Women’s Development Corporation for various business activities. These loans can be obtained from commercial banks, district cooperative banks, and Regional Rural Banks (RRBs).

Recognizing the challenges faced by women in securing loans from informal sources at exorbitant interest rates, the Udyogini Scheme establishes formal credit channels accessible to women. It endorses a range of profitable business activities, including:

• Bookbinding and notebook manufacturing
• Chalk and crayon production
• Jam, jelly, and pickle manufacturing
• Papad production
• Embroidery work and saree weaving
• Printing and dyeing of fabrics
• Woolen weaving

Through this initiative, women are provided with ample opportunities to become self-employed and achieve financial independence.

Key Benefits of the Udyogini Scheme

The Udyogini Scheme offers significant financial support to women, especially those from marginalized communities:

• For women belonging to the Scheduled Castes (SC) and Scheduled Tribes (ST), the unit cost ranges from ₹1,00,000 to ₹3,00,000, with a subsidy of 50% on the loan amount. The family income should not exceed ₹2,00,000 per annum.
• For women from the special and general categories, the maximum unit cost is ₹3,00,000. The subsidy provided is 30% of the loan amount, capped at ₹90,000, along with Entrepreneurial Development Program (EDP) training for selected beneficiaries.

Eligibility Criteria

<pTo qualify for the Udyogini Scheme, applicants must meet the following conditions:

• The applicant must be a woman.
• Family income must be below ₹1,50,000 per annum for women from general and special categories. There is no income limit for widowed or disabled women.
• Applicants should be between the ages of 18 and 55 years.
• Must be a permanent resident of Karnataka.
• The applicant must not have any defaults on previous loans from financial institutions.

Reservation and Priority

Priority is given to certain groups within the scheme:

• Women who are extremely poor, destitute, widowed, or physically challenged.
• Preference is also extended to those who have completed skill development or vocational training through the Karnataka State Women’s Development Corporation or other departments.
• Approximately 10% of the allocated target is reserved for applicants from World Bank-assisted Swashakthi or Stree Shakthi groups.

Application Process

The application process for the Udyogini Scheme is straightforward and can be completed through both offline and online methods.

Apply Offline

1. To initiate the application for a business loan, visit the nearest bank with the required documents and complete the application form. Forms can be obtained at the offices of the Deputy Director/CDPO or downloaded from the banks’ official websites or the Karnataka State Women’s Development Corporation website at www.kswdc.com.
2. Submit the completed application along with the necessary documents to the nearest bank or KSFC branch. Bank officials will verify the documents and project proposal before processing the loan application. The bank will request the Corporation for the release of the subsidy, after which the loan amount will be disbursed.
3. Once approved, the loan amount will either be credited to the applicant’s bank account or directly to the supplier’s account for any required machinery or equipment.

Apply Online

1. Applicants can also apply for loans online by visiting the official website of banks participating in the Udyogini Scheme. The CDPO will review applications and forward them to the Selection Committee after conducting a spot verification.
2. The Selection Committee will then assess the applications and forward them to the banks for loan disbursement.
3. Upon approval of the loan application, the funds will be disbursed to the applicant’s bank account or directly to the supplier’s account for necessary capital expenditures.

Official Source

For more information, please visit myScheme.gov.in.