Launched initially in 1997-1998 (amended in 2004-2005), the Udyogini Scheme is a flagship initiative of the Government of Karnataka aimed at empowering women by promoting self-employment through trade and service sector activities. The scheme provides financial assistance and subsidized loans via the Karnataka State Women’s Development Corporation (KSWDC) to support the establishment of micro enterprises and business activities. This initiative is designed to reduce reliance on high-interest private loans by creating a structured, formal credit channel for women entrepreneurs.
Benefits
- For SC/ST Women:
- Unit cost: Minimum ₹1,00,000 to a maximum of ₹3,00,000.
- Subsidy: 50% of the loan amount, subject to an income limit (family income below ₹2,00,000 per year).
- For Special/General Category Women:
- Maximum unit cost: ₹3,00,000.
- Subsidy: 30% of the loan amount, capped at a maximum of ₹90,000.
- Additional Support:
- Selected beneficiaries receive Entrepreneurship Development Programme (EDP) training.
Eligibility Criteria
- Gender:
- The applicant must be a woman.
- Family Income:
- For general and special category women, the family income should be less than ₹1,50,000 per year. (No income limit applies for widowed or disabled women.)
- Age:
- Applicants must be between 18 and 55 years.
- Residency:
- The applicant must be a permanent resident of Karnataka.
- Loan History:
- The applicant should not have defaulted on any previous loans with any financial institution.
- Preference/Reservation:
- Priority is given to extremely poor, destitute, widows, and physically challenged women.
- Preference may also be given to those who have completed prior skill development or vocational training through KSWDC or other departments.
- Approximately 10% of the allocated target is reserved for applicants from World Bank-assisted Swashakthi or Stree Shakthi groups.
Application Process
Subsidized Loans for Women Entrepreneurs Offline & Online Process:
- Application Initiation:
- Offline:
- Visit the nearest bank (offices of the Deputy Director/CDPO) or obtain the application form from the official website of the banks or the corporation (www.kswdc.com).
- Online:
- Applicants may also download the application form from the website.
- Offline:
- Filling & Submission:
- Complete the application form with all required details and attach the necessary documents.
- Submit the form to the nearest bank or KSFC branch.
- Bank or KSFC officials will verify the documents and the project proposal.
- Once the project is approved, the bank sends a request letter to KSWDC for the release of the subsidy.
- The loan amount is then disbursed either to the applicant’s bank account or directly to the supplier’s account for machinery, equipment, or other capital expenditures.
Documents Required
- Three recent passport-size photographs of the applicant.
- Certificate evidencing training/experience related to the business activity.
- Detailed Project Report (DPR) for the business activity.
- Ration Card or Voter ID Card.
- Annual Income Certificate of the family.
- Caste Certificate (for SC/ST applicants).
- Quotations for machinery, equipment, and other capital expenses.
- Any additional documents as specified by the financial institution or KSWDC.
Frequently Asked Questions (FAQs)
- What is the Udyogini Scheme in Karnataka?
A government initiative to assist women in achieving economic independence and self-reliance by providing subsidized loans for setting up micro enterprises. - Who is eligible to apply for the Udyogini Scheme?
Women entrepreneurs in Karnataka, aged between 18 and 55, with specific income criteria depending on their category, and with no previous loan defaults. - What is the maximum loan amount available under the scheme?
The scheme supports loans with unit costs up to ₹3,00,000 for special and general category women and up to ₹3,00,000 for SC/ST women, with varying subsidy percentages. - What interest rate is applicable for loans under the scheme?
Interest rates are determined by the participating financial institutions. Applicants should check with their respective banks. - What is the repayment period for the loans?
Repayment terms vary based on the loan agreement with the financial institution. - Is there a processing fee for these loans?
Details regarding processing fees are available from the lending institution. - Can women who have availed loans from other sources apply?
Applicants should not have defaulted on any previous loans; however, eligibility regarding multiple loans should be clarified with the bank. - Can urban women entrepreneurs apply?
Yes, the scheme is open to eligible women across Karnataka, including those in urban areas. - What is the age limit for co-applicants?
The primary applicant must be between 18 and 55 years; specific guidelines for co-applicants, if applicable, should be obtained from the official sources. - How do women entrepreneurs apply for the Udyogini Scheme?
Applications can be submitted offline at the nearest bank/KSFC branch or online by downloading the application form from www.kswdc.com. - What documents are required for the application?
Required documents include photographs, training certificates, DPR, identity proofs, income certificates, caste certificate (if applicable), and quotations for capital expenses. - Is online application available?
Yes, applications can be downloaded and submitted online as per instructions on the KSWDC website. - What is the selection process for availing loans under the scheme?
Financial institutions verify the documents and project proposals; eligible projects are then forwarded to KSWDC for subsidy release. - How long does it take for loans to be sanctioned?
Loan sanctioning times vary depending on the bank’s processing times and verification procedures.