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What is the Udyogini Scheme
The Udyogini Scheme is a self-employment support programme for women, launched by the Government of Karnataka through the Karnataka State Women's Development Corporation (KSWDC). It was first introduced in 1997-98 and later amended in 2004-05. The scheme aims to reduce women's dependence on high-interest informal moneylenders by providing access to collateral-free, subsidised loans through formal channels such as district cooperative banks, commercial banks, regional rural banks, and the Karnataka State Finance Corporation. It is a state government initiative, and not a centrally sponsored scheme, so it is currently available specifically to women who are permanent residents of Karnataka.
Who is eligible for the Udyogini Scheme
To apply for the Udyogini Scheme, applicants generally need to meet the following criteria:
- Be a permanent resident of Karnataka
- Be a woman aged between 18 and 55 years
- Have an annual family income below Rs. 1.5 lakh for general and special category applicants, or below Rs. 2 lakh for SC/ST category applicants
- Not have defaulted on any previous loan
- Widowed, destitute, or physically challenged women may be given special preference, and in some cases are exempt from the income limit criteria
Since eligibility criteria can be updated by the Karnataka State Women's Development Corporation, it is best to confirm the latest requirements with your nearest KSWDC office.
Loan amount and subsidy under the Udyogini Scheme
The Udyogini Scheme offers collateral-free loans with a subsidy based on the applicant's category:
| Category | Loan amount | Subsidy |
|---|---|---|
| General and special category | Rs. 1 lakh to Rs. 3 lakh | 30% of the loan amount |
| SC/ST category | Rs. 1 lakh to Rs. 3 lakh | 50% of the loan amount |
The subsidy amount is paid by the Karnataka Government directly to the lending bank or financial institution, and the remaining loan amount is repaid by the applicant at the interest rate set by the lender.
Eligible business activities under the Udyogini Scheme
The Udyogini Scheme supports a wide range of small-scale, income-generating business activities, with close to 88 approved categories under the scheme. These typically include trade, service, and small-scale manufacturing activities, such as tailoring, food processing, retail trade, and similar micro-enterprises suited to self-employment. Since the exact list of eligible activities is set and updated by the Karnataka State Women's Development Corporation, applicants should confirm whether their specific business idea qualifies before applying.
Documents required to apply for the Udyogini Scheme
- Proof of identity, such as an Aadhaar card or voter ID
- Proof of residence confirming permanent residency in Karnataka
- Proof of age
- Income certificate showing annual family income
- Caste certificate, if applying under the SC/ST category
- Business plan or project report for the proposed activity
- Passport-sized photographs
Requirements can vary slightly depending on the implementing bank or KSWDC office, so it is advisable to confirm the exact document list before submitting your application.
How to apply for the Udyogini Scheme
- Contact your nearest Karnataka State Women's Development Corporation (KSWDC) office or a participating bank branch to obtain the application form.
- Fill in the application form with your personal, residency, and business details.
- Attach all required documents, including proof of identity, residence, income, and your business plan.
- Submit the completed application to the KSWDC office or participating bank.
- If selected, you may be required to attend a short Entrepreneurship Development Programme (EDP) training, typically lasting 3 to 6 days, before your loan is disbursed.
- Once approved, the subsidy is credited to the lender, and the loan amount is disbursed to you as per the bank's process.
Udyogini scheme list of businesses
The Udyogini Scheme offers financial assistance and subsidies to women entrepreneurs across 88 small-scale industries (SSIs). This structural support empowers women to launch and scale micro-enterprises across diverse economic sectors.
The table below outlines the primary categories of eligible business types supported under this scheme:
| Business Sector | Eligible Business Examples |
| Food & Agriculture | Bakeries, catering units, dairy farming, poultry trade, pickles and papad making, commercial flour mills, and sweet shops. |
| Retail & Trade | Stationery shops, local grocery stores, bangles, footwear retail, flower shops, and retail vegetable vending. |
| Garments & Textiles | Tailoring units, readymade garments trade, sari and embroidery works, handloom or silk weaving, and cloth trading. |
| Manufacturing | Agarbatti (incense stick) making, local handicrafts, chalk crayon manufacture, matchboxes, and handmade soap production. |
| Services | Beauty parlours, crèches, typing institutes, professional photo studios, dry cleaning, and private library services. |
Detailed interest rates and subsidy structure
The Udyogini Scheme offers attractive financial terms to support women entrepreneurs. Below is a breakdown of the interest rates and subsidies:
| Category | Interest rate | Subsidy offered | Repayment terms |
| General category | Low rates | Up to 30% | Flexible |
| SC/ST women | Lower rates | Up to 50% | Flexible |
| Business loans | Varies | Not applicable | Standard terms |
For the latest updates on fees and charges, applicants are encouraged to visit the official Udyogini Scheme website.
List of 88 eligible businesses under Udyogini Yojana
The Udyogini Scheme supports a diverse range of businesses, including but not limited to:
- Tailoring
- Handicrafts
- Retail shops
- Dairy farming
- Poultry farming
- Beauty parlours
- Food processing units
- Agriculture-related businesses
- Handloom weaving
- Small-scale manufacturing
This diverse list ensures that women from various sectors can benefit from the scheme and contribute to economic growth in their communities.
Know more: Mahila-E-Haat Scheme
Conclusion
The Udyogini Scheme 2026 is a transformative initiative designed to empower women entrepreneurs across India. By providing financial support, subsidies, and a streamlined application process, the scheme encourages women to pursue their entrepreneurial ambitions and achieve financial independence. If you are a woman entrepreneur looking to start or expand your business, the Udyogini Scheme is an excellent opportunity to explore.
Frequently Asked Questions
Loan Amount, Subsidy & Charges
Eligibility & Application
Documents & Other Information
What is the maximum loan amount under the Udyogini Yojana scheme?
The maximum loan amount under the Udyogini Scheme is Rs. 3 lakh. This may vary based on the business type and applicant category, especially for SC/ST women who may qualify for higher benefits.
How much subsidy is provided under the Udyogini Scheme for SC/ST women?
SC/ST women can receive subsidies of up to 50% under the Udyogini Scheme, subject to meeting eligibility criteria and providing the necessary documentation.
What is the Udyogini Scheme interest rate for SC/ST and general applicants?
Under the official scheme, interest rates are highly subsidised. For SC/ST women, the loan can effectively become interest-free as the government provides a massive 50% capital subsidy. General category women receive a 30% subsidy, with the remaining borrowing rates usually ranging between 6% and 12% depending on the implementing bank.
Is there any processing fee for the Udyogini Yojana?
Processing fees for the Udyogini Scheme vary depending on the lender's policies. Applicants are advised to confirm the details on the official website or with the respective financial institution.
Can I apply for the Udyogini Scheme online from any state?
Yes, the Udyogini Scheme is accessible online for most states in India. However, regional variations may apply, so check the official portal for state-specific details.
Is the Udyogini Scheme available outside Karnataka?
No, the official government-subsidised Udyogini Scheme is uniquely a Karnataka state government initiative, requiring applicants to be permanent residents of Karnataka. However, many commercial banks and financial institutions across India offer independent, similarly named corporate business loan products tailored for women entrepreneurs inspired by this flagship welfare programme.
Who is eligible to apply for the Udyogini Scheme?
Applicants must be permanent residents of Karnataka, women aged between 18 and 55, with annual family income below Rs. 1.5 lakh, or Rs. 2 lakh for SC/ST category. Applicants should also have no history of loan default.
What documents are required to apply for the Udyogini Scheme?
You will typically need proof of identity, residence, and age, an income certificate, a caste certificate if applying under SC/ST category, a business plan, and passport-sized photographs. Exact requirements may vary by bank or KSWDC office.
Are training programs mandatory under the Udyogini Scheme?
Training programmes are not mandatory for the Udyogini Scheme. However, they are highly recommended as they help build essential entrepreneurial skills, which can improve business success.
How can I check my Udyogini Scheme application status?
I couldn't confirm a dedicated online status-tracking portal for this scheme. The most reliable way is to contact the KSWDC office or participating bank branch where you submitted your application directly for an update.
