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The Udyogini scheme or Udyogini Yojana scheme is a pivotal government scheme for empowering women entrepreneurs in India. Its primary objective is to provide women with financial assistance (Udjogini scheme loan) and foster economic independence among women, especially those from economically disadvantaged sections. Under the scheme, eligible women applicants can borrow up to ₹3 lakhs for their business, with zero interest rates (specific sections) or at a low interest rate of 10% to 12%. This funding is to help them start or expand their business.

Grow Your Business

The Udyogini Yojana loan, along with other government led subsidy schemes, MSME loan schemes and initiatives such as Annapurna scheme, Stree Shakti scheme, and Mahila Udyam Nidhi scheme collectively help to build a robust environment to grow, nurture and drive women-led enterprises. Let’s take a closer look at Udyogini scheme meaning, its eligibility and documentation requirements, how to apply for Udyogini scheme online and offline, and other details about the scheme.

What is Udyogini Scheme?

The Udyogini scheme or Udyogini Yojana scheme is a government initiative launched to empower women entrepreneurs and their ventures (new and existing) with crucial financial assistance.

The Udyogini Scheme loan offers funds up to ₹3 lakhs to eligible women entrepreneurs from banks at nominal interest rates (10% – 12%) or in certain cases it offers interest free loans. Women between 18 to 55 years can apply for the loan for doing business across a variety of activities/types including bakeries, canteen and catering, corrugated box manufacturing, jute carpet manufacturing, and others, making it a versatile financial assistance scheme for aspiring businesswomen.

With the Udyogini scheme, the goal is to make women atma nirbhar, reducing dependencies and cementing their role and position in India’s growing business ecosystem and overall social growth.

Also read: Small business ideas below ₹10 lakhs in India

Udyogini yojana for women entrepreneurs

Udyogini Yojana scheme highlights

Eligibility Age: 18 to 55 years

Family income: Less than ₹1.5 lakhs annually

Loan amount Up to ₹3 lakhs
Interest rates General: 10% to 12%

Special cases: No interest on loan amount

Method of application Online and offline
Businesses allowed 88 business activities from small scale industries, manufacturing, trading, retail
Helpline number for Udyogini scheme +91 9319620533

What is 3 lakh loan by central government?

The Udyogini Yojana loan is also at times referred to as the ₹3 lakh loan. This is because, under this loan scheme women entrepreneurs can apply for a loan of up to ₹3 lakhs from specific banks to start or grow their business ventures. They will have to meet the basic eligibility requirements (e.g., age limit between 18 and 55 years, annual family income of less than 1.5 lakhs etc.) and submit the required documents to avail the loan opportunity.

The sanction and decision of the actual loan amount is on the lending bank and the decision of the CDPO.

Who is eligible for Udyogini Yojana?

Let’s take a look at the Udyogini scheme eligibility criteria. Apart from the loan scheme being designed exclusively for women entrepreneurs, there are certain other requirements that have to be fulfilled to be considered eligible for application to Udyogini Yojana loan.

  • Must be a woman citizen of India
  • Age limit must be within 18 to 55 years (for all general category applicants) with no upper limit for widows, disabled or destitute beneficiaries
  • Scheme is open to SC/ST women and those from other backward sections
  • Annual family income must be below ₹1,50,000
  • Business venture must be within the 88 activity categories eligible under this scheme including small scale industries, manufacturing, trading, retail, self-employment and others
  • A good credit score is required for application (in general, 600+ is considered the minimum credit score for a business loan, while 700+ is considered a good credit score)

What is the income limit for Udyogini scheme?

A commonly asked question is, what is the income limit for Udyogini Scheme for women entrepreneurs? As per the Udyogini scheme eligibility criteria, any female entrepreneur with an annual family income of less than ₹1.5 lakhs can apply for the loan. Therefore, the income limit for application for Udyogini yojana is ₹1,50,000 per annum per family.

Udyogini scheme loan application

What are the documents required for Udyogini Yojana application?

There are some specific documents required for Udyogini scheme application. This is to ensure that the loan is being sanctioned to deserving applicants only.

List of documents for Udyogini scheme:

  • 3 passport sized photographs (coloured and latest)
  • Identity and address proof – Voter’s Card or ration card or Aadhaar card
  • Family annual income certificate
  • Bank passbook copy (BPL certificate should also be provided)
  • Detailed project report or project proposal for the activity one is seeking funding for, including financial quotations for capital expenditure or purchase of machinery
  • Any training or experience certificate for the specific activity of business one is seeking funding for
  • Caste certificate required (SC/SCT) for interest rate relaxation and other benefits

What is the interest rate for Udyogini Yojana loan?

The interest rate for Udyogini Yojana is kept minimum to encourage more women to take up entrepreneurship. Depending on the lending bank/NBFC, the loan interest rate can range between 10% to 12%. In special cases, that is, financing to disabled, widows and other specific other cases, there is zero interest charged on the loan amount.

Up to 30% subsidy on family income and loan repayment is also possible in certain cases under this loan scheme.

How to apply for Udyogini Scheme?

The Udyogini Yojana scheme apply online and offline procedure is simple and straightforward. It requires minimum documents and can be done either by visiting the bank’s website or any branch.

How to apply for Udyogini online?

The Udyogini Scheme 2024 apply online procedure can be done by visiting the bank’s website. There ae specific banks that offer this scheme (e.g. Saraswat Bank) and an applicant can visit their website to apply for the loan. Follow the steps below for Udyogini yojana scheme apply online process.

Udyogini Scheme 2024 apply online:

  • Visit the bank’s official website and click on the Udyogini Scheme section tab
  • Click on the application link (e.g., Apply Now or similar)
  • Fill in the application form with all details requested and apply
  • Await review by the CDPO (if CPDO approves the application will be forwarded to the selection committee for review)
  • Processing for loan will commence once the application is reviewed and returned from the selection committee and all documents and project plans are in place
  • Following successful review and verification a letter will be sent to the corporation for releasing the approved sum for the loan scheme
  • Approval from the bank is required and the amount will be sanctioned and released
  • Deposit will be made to the applicant’s account directly or to the account of the seller/supplier if loan applied is for buying machinery/equipment

Udyogini scheme loan apply

*Image for representation only. Not actual.

Udyogini Scheme 2024 apply offline

The offline application process for Udyogini Yojana loan is similar to the online one, except here you will have to visit the bank’s branch physically to submit the form and apply for the loan.

  • Visit the office of the Deputy Director (CDPO) or the bank’s website for the application form for loans under Udyogini scheme
  • Collate all documents and visit the bank’s nearest branch for submitting the Udyogini scheme application form
  • Fill in the form along with all the documents and submit it to the officials
  • Await review of all documents submitted and verification process
  • Release of funds will be requested from the corporation once the application is verified, approved and processed
  • Sanctioned amount is either sent directly to the applicant’s bank account or to the supplier/seller as the case might be

Which banks are eligible for Udyogini scheme?

For Udyogini scheme loan application online and offline, you can visit specific banks that come under the scheme:

  • Karnataka State Women’s Development Corporation
  • Saraswat Bank
  • Punjab & Sind Bank
  • Bajaj Finserv

Also read: Business loan schemes for women entrepreneurs in India

What businesses/categories come under the Udyogini Yojana?

There are approximately 88 businesses that come under the Udyogini scheme loan. Check with your nearest bank for the list of businesses. Some of the popular businesses that are covered under the scheme are:

  • ManufacturingAgarbatti (incense stick), matchbox, banana leaf, papad, jams, pickles, vermicelli, bed sheets/towels, quilts, chappal/footwear, handicrafts, soap oil, silk thread, woollen garments, etc.
  • Services/Small business – Travel agency, real estate agency, typing institute, security service, tailoring shop, STP/phone booth, photo studio, gyms, creche, dry cleaning etc.
  • Trade/Retail – Sweet shop, tea stall, plastic shop, old paper mart, milk booth, household article retail, flower shop, fairtrade shop etc.

Also read: List of businesses that come under MSME

Udyogini scheme business activities

Benefits of Udyogini Scheme for women entrepreneurs: Key features and objectives

As we close our discussion on the Udyogini Scheme for women entrepreneurs, let’s take a quick look at its main features, objectives and benefits.

Objectives of Udyogini scheme

  • Facilitate access to finance from banks and NBFCs to women entrepreneurs to start/grow their ventures
  • Provide funds to deserving female entrepreneurs including those belonging to special categories or from backward sections
  • Provide and ensure that EDP training provided enable women to strengthen their business skills
  • Discourage borrowing from lenders at high interest rates

Features and Benefits of Udyogini Yojana scheme:

  • 88 small scale industries identified to enable female entrepreneurs start a new business
  • 30% loan subsidy offered to women in during loan repayment
  • Training and guidance provided to set up and grow a business (e.g., on pricing strategy, costing, planning etc.)
  • For agriculture based business, interest-free loans available

Also read: MSME subsidy schemes

What is Mahila loan?

When speaking of the Udyogini scheme loan, many mention of the other mahila loans or loans for women entrepreneurs. Once such loan scheme is Mahila Samridhi Yojana (MSY) by the NSFDC. Here, microfinance loans up to ₹1 lakh is offered by the government to women entrepreneurs from the marginalised sections. The scheme is designed for women entrepreneurs in the BPL category and offers a repayment period of 3 years after implementation period.

Is Udyogini an NGO?

In this discussion, we’ve talked about the Udyogini scheme which is a financial assistance scheme launched by the government to empower women and make them financially independent by encouraging them to start/grow their business ventures.

The Udyogini scheme for women empowerment as such is a government loan scheme and not an NGO.

However, there could be NGOs with the name Udyogini. Please check online/ffline for more details.

Sohini Banerjee

Sohini is a seasoned content writer with 12 years’ experience in developing marketing and business content across multiple formats. At Tata nexarc, she leverages her skills in crafting curated content on the Indian MSME sector, steel procurement, and logistics. In her personal time, she enjoys reading fiction and being up-to-date on trends in digital marketing and the Indian business ecosystem.