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Udyogini Scheme for Women: Check Features, Benefits, Eligibility & Interest Rate

Shikha Parewa
Shikha Parewa

Udyogini scheme is all about women empowerment and to make them Aatmanirbhar. Keeping women on its top priority, the Indian government has launched various initiatives and schemes for their upliftment.

Indian government has launched Udyogini Scheme under Women Development Corporation. The scheme encourages poor women entrepreneurs to receive financial support to start a business. Under the program, these women entrepreneurs can benefit from liberal loans to start their businesses in different fields.  

The main purpose of the Udyogini scheme is to enable women to become financially independent and to support their families in backward or rural areas of the country. 

As part of this plan, the government ordered financial institutions, including banks, to provide interest-free loans to women from different parts of society without any prejudice or priority. First, the Udyogini plan was initiated by the Karnataka State Women's Development Corporation (KSWDC), Cooperative Bank Regional Rural Bank, Sind Bank along with different private and other Public sector Banks. 

Eligibility to apply for Udyogini Scheme and other related facts: 

Amount of Loan:   Maximum amount up to 3 Lakh rupees. 

Interest rate:  Highly subsidized or free loans for special category. 

Family Income (annual) of applicant:  1.5 Lakh or less 

Age limit:  18-55 years 

For widows/disabled women:  No income limit 

Collateral:   Not required 

Processing fees:   Nil 

The Udyogini scheme aims to tap the entrepreneurial potential of women by providing personalized loans in rural or underdeveloped areas of India. The aspiring scheme is simple and follows the steps: 

  • Women under this scheme are given the required skills and customized business services.

  • It provides with appropriate funding, changes are focused on increasing production.

  • It helps to boost income from operations.

Important Features of Udyogini scheme: 

High-value loan amount- Some applicants can get a loan of Rs.3 lakh according to the Udyogini scheme. However, in order to use the funds, eligible applicants must meet the required eligibility criteria. 

Interest-free loan- The main purpose of the scheme is to provide financial assistance to women in setting up their small businesses. Financial institutions are more liberal in funding women from special categories such as the poor, widows and the privileged disabled. Women in special categories are entitled to interest-free loans under the program. 

88 Small industries covered by the scheme- Under the scheme eighty-eight small scale industries can avail themselves loan benefits. The scheme also provides interest-free loans to women entrepreneurs in the agriculture sector. 

Skill development training for women- The scheme also provides functional skills to women regarding business planning, feasibility, pricing, costing and other financial support. 

Loan subsidy-up to 30%- This scheme make repayment affordable for women by providing up to 30% of subsidy on loans. 

Required documents to apply for Udyogini Scheme: 

  • Aadhar card

  • Birth certificate

  • Passport size photographs-2 

  • A letter is written on local MLA or Local MP latter pad

  • Photocopy of BPL card

  • Caste certificate (SC/ST)

  • Income proof

  • Photocopy of Bank passbook

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