What is Udyogini Scheme?

One of the primary concerns of the government is to empower Women of India and make them Aatmanirbhar. Keeping the welfare of women in mind, the Government of India has launched various initiatives and assisted in their development in all spheres of life. Udyogini Scheme is one such scheme that provides financial assistance to budding entrepreneurs in the rural heartland and under-developed areas of India.

The Government of India under Women Development Corporation has launched the Udyogini scheme for Indian Women entrepreneurs. The scheme encourages poor women entrepreneurs with financial assistance to start their own business. Under the scheme, these women entrepreneurs can avail of liberal loans for starting their business activities under different categories. 

The Udyogini scheme aims to enable women to become financially independent and support their families in rural or backward areas of our country.

Udyogini Scheme Insights

Under this scheme, the government has directed financial institutions, including banks, to provide interest-free loans to women belonging to different sections of the society without any prejudice or preference. Primarily, Udyogini scheme was launched by the Karnataka State Women’s Development Corporation (KSWDC), Saraswat Bank, Punjab and Sind Bank, Regional Rural Banks, Cooperative Banks along with different private and other Public sector Banks.

How does the Udyogini scheme work?

The Udyogini scheme is meant to harness women entrepreneurship potential by providing customized loans in rural or underdeveloped areas of India. The ambitious scheme is simple and follows the steps:

• Women from targeted areas are given the necessary skills and customized business services.
• With adequate funding sanctioned focus shifts on increased production
• Increased income from operations
• Active women participation in decision making

Features of the Udyogini Scheme

• Interest-free loans

The Udyogini scheme aims to provide financial help to women in establishing their small businesses. Financial institutions are more liberal in funding women belonging to special categories such as widows, destitute, and disabled are accorded special privileges. Women under special categories get interest-free loans under the scheme. 

• High-value loan amount

Some of the applicants can get a loan of Rs. 3 lakh under the Udyogini scheme. However, for availing this amount, eligible applicants must meet the required eligibility criteria.

• 88 Small scale Industries are covered under the scheme

Eighty-eight small scale industries get loan benefits under the scheme. Interest-free loans are also given to women entrepreneurs in the agriculture sector.

The list of 88 small-scale  industries are: