Published on Aug 23, 2024Updated on Sept 30, 2026
Understand who can apply, what financial support is available, which businesses are covered, and how to complete the application process under Karnataka's Udyogini Scheme.
The Udyogini Scheme is a Karnataka government initiative designed to support women who want to pursue self-employment and income-generating activities. Through financial assistance, category-based subsidies and entrepreneurship training for selected beneficiaries, the scheme can help eligible women establish or expand small businesses. This guide covers who can apply, the applicable income and age criteria, subsidy structure, eligible business activities, required documents, interest rate, and the online and offline application processes.
The Udyogini Yojana Scheme is a Karnataka government initiative for women entrepreneurs. Eligible applicants can receive financial assistance through participating lenders and financial institutions for approved business activities.
|
Particulars |
Udyogini Scheme Details |
|
Scheme |
Udyogini Scheme |
|
State |
Karnataka |
|
Target beneficiaries |
Women entrepreneurs seeking financial support for income-generating activities |
|
Age |
18 to 55 years |
|
Unit cost range |
Rs. 1 lakh to 3 lakhs |
|
SC/ST subsidy |
50% of the loan amount |
|
Special/general category subsidy |
30%, subject to a maximum of Rs. 90,000 |
|
Residence |
Permanent resident of Karnataka |
|
Application |
Offline and online routes are available |
|
Training |
EDP training for selected beneficiaries |
The exact loan approval and disbursal depend on the financial institution and the applicant's documents and project proposal.
The Udyogini Scheme was introduced by the Government of Karnataka to help women achieve self-reliance through self-employment. It was started in 1997–98 and amended in 2004–05. The scheme mainly supports business activities in the trade and service sectors.
The programme also aims to provide women with access to formal credit. This can reduce reliance on private moneylenders that may charge high interest rates.
Loans are disbursed through commercial, district cooperative, and Regional Rural Banks (RRBs). Eligible women may also receive a subsidy from the Karnataka State Women's Development Corporation (KSWDC), depending on their category and the applicable scheme conditions.
The Udyogini Scheme run by the Karnataka State Women Development Corporation (KSWDC) is intended for eligible women who are permanent residents of Karnataka. As it is a state-specific initiative, the Udyogini Scheme is not available in all of India.
Note: People searching for Udyogini available states may come across women-focused entrepreneurship and self-employment schemes offered by other state governments. For example, a search for Udyogini scheme Kerala may show other programmes aimed at supporting women, but these should not be confused with Karnataka's Udyogini Scheme. The eligibility criteria and benefits covered in this guide apply specifically to the Karnataka scheme.
|
Particular |
Details |
|
Implementing organisation |
Karnataka State Women’s Development Corporation |
|
Main objective |
Support women in income-generating activities and self-employment |
|
Loan Amount/Unit cost |
Rs. 1 lakh to Rs. 3 lakhs |
|
Training |
Entrepreneurship Development Programme (EDP) training may be provided to selected beneficiaries |
|
Family Income Limit |
|
|
Applicant Category |
Subsidy |
|
SC/ST |
50% of the loan amount |
|
Special category |
30%, subject to the applicable Rs. 90,000 maximum limit |
The subsidy covers only a portion of the approved project or loan amount. The remaining project cost can be financed through the sanctioned loan and/or borne by the beneficiary, as applicable under the scheme rules and the terms of sanction.
Please note that it is recommended to refer to official government sources for the most up-to-date information.
The Udyogini Scheme eligibility requirements include:
The scheme also gives preference to extremely poor and destitute women, widows, and physically challenged women. Preference may also be given to women who have completed skill development or vocational training through KSWDC or another government department.
Further, around 10% of the allocated target is set aside for applicants who are members of World Bank-assisted Swashakthi or Stree Shakthi groups.
The Udyogini loan amount is generally between Rs. 1 lakh and Rs. 3 lakhs, depending on the eligible business activity and project cost. The lending institution may determine the final sanctioned amount after assessing the project and applicant.
|
Category |
Loan / Unit Cost |
Subsidy |
|
SC/ST women |
Rs. 1 lakh–Rs. 3 lakhs |
50% of the eligible loan amount |
|
Special category women |
Up to Rs. 3 lakhs |
30% of the loan amount, or maximum Rs. 90,000 |
|
General category women |
Up to Rs. 3 lakhs |
30% of the loan amount, or maximum Rs. 90,000 |
The Udyogini subsidy is financial support towards the loan and is not the same as the loan amount. The applicable Udyogini 50% subsidy for SC/ST applicants and Udyogini 30% subsidy for general and special category applicants are subject to the scheme rules and eligibility conditions.
The main features include:
If you meet the eligibility requirements, the scheme can make it easier to arrange funding for starting or pursuing an approved income-generating activity.
Key benefits include:
The Udyogini business list covers 88 small businesses and self-employment ventures that can help women earn a sustainable income. The businesses under the Udyogini Scheme span sectors such as agriculture, retail, food-related work, tailoring, services and small-scale production. However, choosing an income-generating activity from these categories does not automatically guarantee assistance. The proposed activity must meet the applicable scheme requirements and be approved during the application and sanction process.
Examples of some of the 88 activities under Udyogini include:
You may need the following documents to apply:
The lender or implementing authority may ask for additional documents during verification. Keep the information in your application and supporting documents accurate and consistent.
There isn't a universal fixed interest rate for all applicants. The applicable rate depends on the participating financial institution, the applicant's category, and the terms under which the loan is sanctioned. Certain eligible applicant categories (including widows, disabled applicants, or specific BPL applicants) may also receive interest-free financing, subject to applicable scheme provisions and lender approval.
You can apply through the available offline or online route, depending on the process followed by the participating lender or implementing authority.
After you submit the application, the concerned officials verify your documents and project proposal before the application moves through the Udyogini approval process.
The process may include:
You can contact the concerned lender or implementing authority to check your Udyogini application status. The time required for Udyogini loan sanction can vary based on verification, appraisal and lender procedures.
An application may not proceed if you do not meet the scheme requirements or the lender's criteria. Common Udyogini eligibility issues include:
If your Udyogini application rejection status appears, contact the concerned lender or implementing authority to understand the reason. A Udyogini loan rejection does not necessarily mean you cannot apply again; you may first need to address the specific eligibility or documentation issue.
While we know that the Udyogini Scheme is for eligible women residents of Karnataka, other schemes have different eligibility criteria and coverage.
Women outside Karnataka can explore suitable central government schemes as well as programmes offered by their respective state governments or State Women's Development Corporations. Eligibility criteria, funding limits, and other terms should be checked against the latest official guidelines before applying.
The Udyogini Scheme Karnataka supports eligible women who want to start or grow approved small businesses. To apply, you must meet the Karnataka residency and other eligibility conditions, prepare the required project documents and follow the official application route through the concerned authority or participating lender. The subsidy varies by category and is subject to the applicable scheme rules.
It's important to note that an Udyogini loan is different from regular commercial financing. If you require funding beyond what is available under the scheme or do not meet its eligibility requirements, you can explore other financing options separately.
SMFG India Credit offers enterprises business loans of up to Rs. 1 crore* at competitive interest rates. You can check your eligibility and apply online with minimal documentation.
Important Note: This article is for general informational purposes only and may be subject to change from time to time. As product features, eligibility criteria, interest rates, charges, fees, tenures and other terms may be revised as per SMFG India Credit's policies, readers are advised to refer to the latest details from the respective product pages (please select from the top menu). For the latest loan charges, please visit Charges & Fees Link and for the latest Interest rates, please visit Interest Rate Rationale. Please note that final loan terms, disbursement process and eligibility criteria will depend on SMFG India Credit's policies at the time of loan application.
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Udyogini loans are not interest-free for every applicant. Widows, women with disabilities, and certain eligible applicants from BPL categories may qualify for interest-free financing, subject to applicable scheme provisions. For other applicants, the interest rate is determined by the participating financial institution.
The Udyogini Scheme provides financial assistance for eligible activities with a unit cost of up to Rs. 3 lakhs. The actual loan amount sanctioned may depend on the project cost, applicant profile and assessment by the financial institution.
There is no single fixed interest rate applicable to all Udyogini Scheme loans. The rate may vary depending on the participating financial institution and the applicable loan terms. Widows, women with disabilities, and certain eligible applicants from BPL categories may qualify for interest-free financing under the scheme.
The repayment period can depend on the loan sanctioned and the terms specified by the participating financial institution. Applicants should check the applicable repayment schedule, instalment amount, and other repayment conditions directly with the concerned financial institution.
The applicable processing fee, if any, may depend on the participating financial institution and its loan terms. Applicants should confirm all applicable fees and charges with the concerned financial institution before submitting or proceeding with their loan application.
Having an existing loan does not by itself establish eligibility or ineligibility. Applicants must meet the Udyogini Scheme requirements and should not have defaulted on previous loans from financial institutions. The lender will assess the application before sanctioning financing.
Yes. Eligible women from urban areas of Karnataka can apply for assistance under the Udyogini Scheme, provided they meet the applicable residency, age, family income, and other eligibility requirements and their proposed activity qualifies under the scheme.
The scheme specifies an age requirement of 18 to 55 years for women applying for assistance.
Eligible women can obtain the application form from the Deputy Director/CDPO office or the KSWDC portal. The completed form, project details, and supporting documents must then be submitted for verification, selection, and loan processing.
An online application may be available through financial institutions participating in the Udyogini Scheme. Applicants should check the official application facility offered by the concerned institution or implementing authority and follow the prescribed process for submitting their details and documents.
Applications are examined by the concerned officials and may undergo document and spot verification before being considered by the Selection Committee. Selected cases are forwarded to the financial institution, which assesses the project and applicant before sanctioning the loan.
There is no single sanction timeline applicable to every Udyogini loan application. Processing time can vary depending on document verification, beneficiary selection, project appraisal, completion of required formalities, and the procedures followed by the concerned financial institution.
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