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Introduction

Udyogini Scheme - This scheme has been launched by Women Entrepreneur and Government for the welfare and growth of Indian Women entrepreneurs.

This scheme encourages and motivates female entrepreneurship among the poor by providing women with financial help to do business. This scheme funds and helps in large part women living in rural and backward areas. Udyogini Schemes helps to improve an individual's and families' income, and contributes to the country's overall growth.

Interest free loans are given without discrimination or bias to women from all parts of society. The banks also offer interest-free loans to women entrepreneurs engaged in farming. Karnataka State Women 's Development Corporation (KSWDC), Punjab and Sind Bank, Saraswat Bank and many other private and public sector banks are key proffers of the Udyogini Scheme. This scheme focuses on coordinating and implementing professional development training programs for women, in addition to providing financial support.

What are the objectives of the Udyogini Scheme?

The key objectives of the scheme are: 

  • Encouraging women to take loans from banks and other financial institutions to take up income generation activities
  • Make financial assistance accessible to women from SC & ST or special category at lower rates
  • To provide interest free loans to eligible women beneficiaries without any discrimination or bias
  • Ensure skill development of the women beneficiaries through EDP Training
  • Prevent women going to private money lenders or other financial institutions for loan with high interest rate

What are the functions of this scheme?

  • The scheme is currently being offered by Karnataka State Women’s development Corporation (KSWDC), Punjab and Sind bank, Saraswat Bank, as well as few other private and public sector banks.
  • Interest free loans to eligible women entrepreneurs involved in agriculture, retail and small business enterprises
  • After the sanction of loan, EDP training for 3 days is provided to the beneficiary women before the release of loan

Udgyogini Scheme from Karnataka State Women’s development Corporation (KSWDC)

  • Encouraging women to take out loans from banks and other financial institutions to conduct KSWDC-listed income-generating activities or other profitable activities for which KSWDC assists in the form of grants.
  • For women belonging to scheduled caste and scheduled tribe unit cost is Rs. 1 lakh to maximum of Rs. 3 lakhs. Subsidy is 50% of the loan amount, income limit of the family should be below Rs. 2.00 lakhs.
  • For women belonging to special category, widowed or general category, maximum unit cost is Rs. 1 lakh. Subsidy for special category women is 30% or a maximum of Rs. 10,000/- and subsidy for general category is 20% or a maximum of Rs. 7,500/-.
  • Eligibility Criteria: Family income should be less than Rs. 40,000/- for women belonging to general category.
  • Age limit is between 18 to 45 years.
  • No income limits to special category women.
  • After the Sanction of loan, the women applicants should undergo an EDP training for 3 days before the release of the loan.
  • The main objective of the Scheme is to avoid women going to private money lenders or other financial institutions to get loans at high interest rates.

Udyogini Scheme for Women Entrepreneurs from Punjab & Sind Bank

  • The objective of the scheme is to enable women entrepreneurs to take advantage of loans under generous terms and exclusive credit catering under Direct Agriculture, Tiny SSI business, Business enterprises, Retail traders, Professional and Self Employed etc.
  • Women enterprises consisting of all units managed by one or more proprietary female entrepreneurs or in which they as partners / shareholders / directors of private limited enterprise / members of cooperative society have a share capital of not less than 51%.
  • Loan / limit would be assessed on a case by case basis and in accordance with the loan purpose
  • No margin for loans of up to Rs. 25,000
  • No collateral security for loans of up to Rs. 25,000; only hypothecation of assets created out of the bank funds will be taken as security.
  • For loans above Rs. 25,000, hypothecation of assets created out of the bank funds or guarantee of spouse or third party or collateral security in the form of land/building property at least double the value of loan shall be mandated.
  • No collateral Security is required for loan/limits up to Rs. 25 lakhs if the MSEs cases are covered under Credit Guarantee Fund Scheme for Small Industries.
  • Loan limit may be granted by way of term loans or working capital for any productive purpose
  • Rate of Interest shall be as per prevailing rates applicable to MSME

Udyogini Scheme from Saraswat Bank

  • Scheme targets women entrepreneurs 
  • Takes care of their financial needs enabling them to focus on their business growth
  • Comes with a number of incentives and discount along with minimum processing charges

Quantum of Loan

Micro Enterprises: Up to Rs. 2 lakhs

Small Scale Enterprises: Between Rs. 2 lakhs to Rs. 50 lakhs

Medium Enterprises: Between Rs. 50 lakhs to Rs. 100 lakhs

Margin Amount

Micro Enterprises: Nil

Small Scale Enterprises: 20%-25% lower than the Bank’s norm

Medium Enterprises: 20%-25% lower than the Bank's norm

Rate of Interest

Micro Enterprises: PLR 3.25% i.e. 11.15% p.a.

Small Scale Enterprises: PLR 3.25% i.e. 11.15% p.a.

Medium Enterprises: PLR 3.25% i.e. 11.15% p.a.

Repayment

Micro Enterprises: 6 Years

Small Scale Enterprises: 6 Years

Medium Enterprises: 7 Years

Security

Micro Enterprises: Hypothecation + Guarantee of Spouse or a Family member wherever required

Small Scale Enterprises: Hypothecation + 2 Guarantors + Collateral Security (25%)

Medium Enterprises: Hypothecation + 2 Guarantors + Collateral Security (30%)

Processing fees

Micro Enterprises: Rs. 5000/-

Small Scale Enterprises:

Upto Rs. 10 lakhs - Rs. 5000/-

Above Rs. 10 lakhs and Upto Rs. 25 lakhs - Rs. 7000/-

Above Rs. 25 lakhs - Rs. 10000/-

Medium Enterprises: Rs. 10000/-

Udyogini Yojana from Bajaj Finserv

  • Provides subsidised loans to aspiring women entrepreneurs from rural and underdeveloped areas
  • Objective is to promote entrepreneurship, financial empowerment and self-reliance among women in these areas
  • To boost micro-enterprises that support the overall growth of the country
  • Provides interest-free loans to women from all walks of life, looking to finance their small business. Special privileges are given to women belonging to special groups such as widowed, aged, or destitute.
  • High-value loan amount to eligible women applicants of up to Rs.3 lakhs under this scheme
  • Loans can be availed to set up business of 88 small-scale industries
  • Along with financial aid, this scheme imparts functional skills to women regarding business planning, pricing, costing, feasibility, etc.
  • Affordable repayment through Government proposed subsidy of up to 30% on loans extended under this scheme

What are the eligibility criteria to apply for the Udyogini Scheme?

  • Applicant must be a woman
  • She should be between 18 and 55 years of age
  • The annual family income of the applicant should be less than Rs.1.5 lakh
  • No upper limit on income for women falling under special categories like disabled, widowed or destitute.
  • Can be availed by businesses engaged in SSI sector, retailers, manufacturers, self-employed professionals, traders, etc.

Documents required to apply for the Udyogini Scheme

  • Duly filled Application Form
  • Passport-size photographs
  • Aadhaar Card
  • Birth Certificate
  • Below Poverty Line (BPL) card
  • Caste Certificate
  • Copy of Bank passbook (account, bank and branch names, holder name, IFSC and MICR)
  • Income Certificate

List of businesses supported under the Udyogini Scheme

Agarbatti Manufacturing

Diagnostic Lab

Leaf Cups Manufacturing

Ribbon Making​​

Audio & Video Cassette Parlour

Dry Cleaning

Library

Sari & Embroidery Works

Bakeries

Dry Fish Trade

Mat Weaving

Security Service

Banana Tender Leaf

Eat-Outs

Match Box Manufacturing

Shikakai Powder Manufacturing

Bangles

Edible Oil Shop

Milk Booth

Shops & Establishments

Beauty Parlour

Energy Food

Mutton Stalls

Silk Thread Manufacturing

Bedsheet & Towel Manufacturing

Fair-Price Shop

Newspaper, Weekly & Monthly Magazine Vending

Silk Weaving

Book Binding And Note Books Manufacturing

Fax Paper Manufacturing

Nylon Button Manufacturing

Silk Worm Rearing

Bottle Cap Manufacturing

Fish Stalls

Old Paper Marts

Soap Oil, Soap Powder & Detergent Cake Manufacturing

Cane & Bamboo Articles Manufacturing

Flour Mills

Pan & Cigarette Shop

Stationery Shop

Canteen & Catering

Flower Shops

Pan Leaf or Chewing Leaf Shop

STD Booths

Chalk Crayon Manufacturing

Footwear Manufacturing

Papad Making

Sweets Shop

Chappal Manufacturing

Fuel Wood

Phenyl & Naphthalene Ball Manufacturing

Tailoring

Cleaning Powder

Gift Articles

Photo Studio

Tea Stall

Clinic

Gym Centre

Plastic Articles Trade

Tender Coconut

Coffee & Tea Powder

Handicrafts Manufacturing

Pottery

Travel Agency

Condiments

Household Articles Retail

Printing & Dyeing of Clothes

Tutorials

Corrugated Box Manufacturing

Ice Cream Parlour

Quilt & Bed Manufacturing

Typing Institute

Cotton Thread Manufacturing

Ink Manufacture

Radio & TV Servicing Stations

Vegetable & Fruit Vending

Crèche

Jam, Jelly & Pickles Manufacturing

Ragi Powder Shop

Vermicelli Manufacturing

Cut Piece Cloth Trade

Job Typing & Photocopying Service

Readymade Garments Trade

Wet Grinding

Dairy & Poultry Related Trade

Jute Carpet Manufacturing

Real Estate Agency

Woollen Garments Manufacturing

Udyogini Scheme FAQs:

1. What is the objective of the Udyogini Scheme?

Udyogini Scheme has been launched by Women Entrepreneur and Government for the welfare and growth of Indian Women entrepreneurs. This scheme encourages and motivates female entrepreneurship among the poor by providing women with financial help to do business. This scheme funds and helps in large part women living in rural and backward areas.

2. How much loan can one get under the Udyogini scheme?

A maximum of Rs. 3 lakhs can be availed under the scheme.

3. What is the age eligibility to apply for the Udyogini scheme?

Women in the age group of 18 – 55 years can apply for this loan.

4. Is this loan specifically for the SC/ST category?

No, this loan can be availed by other category women too.

5. Which businesses are eligible to get this loan?

Udyogini scheme supports up to 88 different businesses. Loans can be availed by businesses engaged in the SSI sector, retailers, manufacturers, self-employed professionals, traders, etc.

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