Udyogini Scheme 2026: Rs. 3 Lakh Women's Loan, Subsidy, and Eligibility

Loan amount and subsidy structure by category

The level of financial assistance available under the Udyogini Scheme varies according to the applicant's category. Once the loan is sanctioned, the subsidy component is released by the Karnataka State Women's Development Corporation (KSWDC) directly to the lending institution.

The subsidy rates and maximum limits are prescribed under KSWDC guidelines and may be revised by the Government of Karnataka from time to time. Applicants should verify the latest eligibility criteria, subsidy structure and scheme guidelines on the official KSWDC website before submitting an application.

Features of Udyogini Yojana scheme

The scheme extends interest-free loans to women from all sections of society who are looking to fund their small businesses.

• High-value loan amount
  Applicants can avail of a loan of up to Rs. 3 lakh under this scheme, provided they meet the essential eligibility criteria.
• Loans are available for 88 small-scale industries
  With the Udyogini loan, you can start businesses categorised under 88 small-scale industries. Some of them are fisheries, bakeries, groceries, tailoring shops, libraries, and more. Interest-free loans under this scheme are also available for women starting a business in the agriculture sector.
• Training for skill development
  This scheme also aims to impart functional skills to women regarding business planning, pricing, costing, feasibility, and more alongside financial support.
• Up to 30% loan subsidy
  The government proposes up to a 30% subsidy on loans extended under this scheme to make repayment affordable for women.
• Transparent evaluation of the beneficiary
  The evaluation process of the Udyogini Yojana application form ensures a transparent assessment for beneficiary selection.

Benefits of the Udyogini Scheme

The Udyogini Scheme helps women start and run businesses successfully by providing easy financing, skills training, and enterprise support. This promotes livelihoods and financial independence. Here are the benefits of the Udyogini Scheme for women entrepreneurs in India:

• Interest rate: Women from special categories like widows, destitute, and differently abled can get interest-free loans for starting micro-enterprises and small businesses
• High-value loans: Women entrepreneurs can get loans up to Rs 3 lakhs if they meet the eligibility criteria. This funding provides enough capital to start businesses and supports inclusive growth. To explore more financing options, you can also consider the Pradhan Mantri MUDRA Yojana.
• Covers 88 industries: The scheme provides financial aid for starting 88 types of small-scale industries. Women in agriculture can also get interest-free loans
• Skills training: Women receive training in business basics like planning, pricing, costing, and feasibility assessment, equipping them with the skills to manage their enterprises
• Loan subsidy: To help with repayments, the scheme offers up to a 30% subsidy on loans for women entrepreneurs

Check your pre-approved business loan offer to explore instant financing options while applying under this or other schemes.

Udyogini Yojna Scheme eligibility criteria

Here is the basic eligibility criteria for Udyogini Yojana Scheme:

• The applicant should be a woman
• The family income should be less than Rs. 1,50,000 per annum for women in general and special categories
• There is no family income limit for widowed or disabled women
• The applicant should be between 18 to 55 years of age for all categories
• The applicant should be a permanent resident of Karnataka
• The applicant should not have defaulted on any past loans with any financial institution

Reservation/Preference /Priority

• Preference is given to those under poverty levels, destitute, widows, and physically challenged women.
• Additional preference may be given to candidates who have undergone prior skill development training or vocational training conducted by KSWDC or any other department.
• 10% of the allocated target is reserved for applicants who are members of World Bank-assisted Swashakthi or Stree Shakthi groups.

Documents required for a loan under Udyogini Yojana

How to apply for the Udyogini Yojna Scheme online

Here is how you can apply for the Udyogini Yojna Scheme online:

• Step 1: Applicants can apply for the loan online by visiting the official website of participating banks under the Udyogini scheme. The Child Development Project Officer (CDPO) reviews the applications, conducts a spot verification, and forwards them to the Selection Committee. The committee then evaluates the applications and submits them to the banks for loan processing
• Step 2: Bank or KSFC officials verify the applicant’s documents and project proposal before proceeding with the loan application. Once verified, the bank sends a request to the Corporation for subsidy approval and subsequently processes the loan
• Step 3: Upon approval, the loan amount is either credited directly to the applicant’s bank account or transferred to the supplier’s account for purchasing machinery, equipment, or other capital expenses

How to apply for Udyogini Yojna Scheme offline

Here’s how you can apply for the Udyogini Yojna Scheme offline:

• Step 1: The applicant can apply for a business loan by visiting the nearest bank with all the required documents and completing the application form. Forms are available at the offices of the Deputy Director/CDPO, on the official websites of participating banks, or can be downloaded from the Karnataka State Women’s Development Corporation website (www.kswdc.com)
• Step 2: The filled application form, along with the necessary documents, must be submitted to the nearest bank or KSFC branch. Bank/KSFC officials will verify the documents and project proposal before processing the loan. Once verified, the bank submits a request to the Corporation for subsidy approval and subsequently disburses the loan amount
• Step 3: After loan approval, the funds are either credited to the applicant’s bank account or transferred directly to the supplier’s account for purchasing machinery, equipment, or other capital expenditures

Udyogini Scheme Interest Rate

The applicable interest rate is determined by the participating bank or the Karnataka State Finance Corporation (KSFC) in accordance with KSWDC guidelines and Reserve Bank of India (RBI) regulations. Interest rates may be revised from time to time, and applicants should confirm the latest rate with the lending institution before applying. For eligible beneficiaries, the subsidy provided under the scheme helps reduce the overall borrowing cost and effective interest burden.

Business Categories Under Udyogini Scheme

The Udyogini Scheme supports 88 income-generating activities across a range of sectors, enabling women to establish or expand small businesses and self-employment ventures. The activities are grouped into five broad categories. A representative list is provided below, while the complete list of eligible activities can be obtained from KSWDC.

Applicants seeking details of all 88 approved activities should refer to the latest guidelines issued by the Karnataka State Women's Development Corporation (KSWDC) or contact the nearest Child Development Project Officer (CDPO) office for assistance.

Entrepreneurship Development Programme (EDP) Training

One of the key features of the Udyogini Scheme is the mandatory Entrepreneurship Development Programme (EDP). Selected beneficiaries are generally required to participate in a three-day training programme conducted by the Karnataka State Women's Development Corporation (KSWDC) or an approved training institution before the loan amount is disbursed.

The Entrepreneurship Development Programme is designed to equip applicants with the knowledge and skills required to establish and manage a successful enterprise. The training typically covers:

• Business planning basics, including the identification of viable business opportunities, assessment of market demand and understanding of competition.
• Financial literacy concepts such as cost estimation, pricing strategies, profit calculation and basic record-keeping practices.
• Business feasibility analysis to help applicants assess the commercial viability and sustainability of their proposed ventures.
• Operational guidance relating to production processes, procurement of raw materials, inventory management and distribution channels relevant to the selected business activity.
• Awareness of government schemes and support programmes available to women entrepreneurs in Karnataka and other relevant assistance initiatives.

Successful completion of the Entrepreneurship Development Programme may improve an applicant's prospects of selection, particularly for women from economically and socially disadvantaged backgrounds. In certain cases, applicants who have already completed recognised vocational training or skill-development programmes through KSWDC or another government department may be eligible for a partial or complete exemption from attending the training again. Applicants should confirm the applicable requirements with their nearest Child Development Project Officer (CDPO) office before applying.

Udyogini Scheme vs Other Women-Focused Loan Schemes in India

The Pradhan Mantri Mudra Yojana (PMMY) currently offers loans of up to Rs. 20 lakh under four categories: Shishu (up to Rs. 50,000), Kishore (up to Rs. 5 lakh), Tarun (Rs. 5 lakh to Rs. 10 lakh) and Tarun Plus (Rs. 10 lakh to Rs. 20 lakh), as per the revised framework introduced in October 2024. Under the Prime Minister's Employment Generation Programme (PMEGP), subsidy rates vary according to the applicant's category and project location. Applicants should verify the latest eligibility criteria and subsidy rates with the Khadi and Village Industries Commission (KVIC) before applying. Women residing outside Karnataka may also explore state-specific entrepreneurship schemes offered by their respective State Women's Development Corporations.

Common Mistakes to Avoid When Applying

• Geographic eligibility error: Applying under the scheme while residing outside Karnataka. The KSWDC Udyogini Scheme is available only to eligible women residents of Karnataka. Women in other states should explore similar schemes offered by their respective State Women's Development Corporations or equivalent agencies.
• Incorrect income declaration: Family income eligibility is assessed on the basis of the total annual income of the household, not the applicant's individual income. Applicants must submit valid income certificates issued by the competent revenue or government authority.
• Incomplete project report: Submitting a project report with insufficient details can delay scrutiny and approval. The report should clearly state the proposed business activity, location, estimated project cost, funding requirement, expected revenue and operational plan.
• Existing loan defaults: Applicants with a history of loan defaults or overdue borrowings may not qualify for assistance under the scheme. Outstanding dues should be regularised before submitting an application.
• Missing caste certificate: SC/ST applicants who do not provide a valid caste certificate may be considered under the general category, which could result in the loss of eligibility for the higher subsidy benefits available to SC/ST beneficiaries.

Looking for Larger or Faster Business Funding?

The Udyogini Scheme is designed for micro-enterprise financing up to Rs. 3 lakh. Women entrepreneurs who require larger capital — for expansion, equipment, or working capital beyond scheme limits — may consider an unsecured business loan from a bank or NBFC, which typically offers higher loan amounts, faster processing, and broader geographic coverage without the residency restrictions of state-sponsored schemes.

For comparing interest rates and eligibility across multiple lenders, use an independent loan comparison platform or speak directly with your bank's MSME desk.