Udyogini Scheme Karnataka: As a progressive step towards financial independence of women, the Government of Karnataka has launched the Udyogini scheme through the Karnataka State Women’s Development Corporation (KSWDC). Let us tell you that this scheme specially created for women provides financial assistance to start small businesses and become self-reliant. With special subsidies for women from underprivileged backgrounds, Udyogini is changing lives by enabling women to step into the world of entrepreneurship. So let’s know about it in detail.
What is the Udyogini Scheme?
Udyogini Scheme is a key initiative launched by the Government of Karnataka to empower women and make them economically self-reliant. This scheme primarily targets women from economically weaker sections, tribal communities, as well as widows and differently-abled women, by providing them opportunities for self-employment.
Under the scheme, women can avail loans ranging from ₹30,000 to ₹3,00,000, along with government subsidies.
- SC/ST women are eligible for a 50% subsidy, provided their annual family income is below ₹2 lakh.
- General category women can avail a 30% subsidy, if their annual income is below ₹1.5 lakh.
- Widowed and differently-abled women have no income limit, and in many cases, they are also eligible for interest-free loans.
To apply, the woman must be a permanent resident of Karnataka and should possess the skills or willingness to start a small business. The Udyogini Scheme not only provides financial assistance but also promotes women’s empowerment by encouraging them to become self-reliant and participate actively in economic growth.
Udyogini Scheme Details (2025)
| Feature | Details |
|---|---|
| Scheme Name | Udyogini Scheme |
| Launched By | Government of Karnataka |
| Implementing Body | Karnataka State Women Development Corporation (KSWDC) |
| Loan Amount | ₹30,000 to ₹3,00,000 |
| Subsidy for SC/ST | 50% (Income ≤ ₹2 lakh/year) |
| Subsidy for General | 30% (Income ≤ ₹1.5 lakh/year) |
| For Widows/Disabled | No income limit; interest-free loan available |
| Eligibility | Women aged 18–55, resident of Karnataka |
| Purpose | Promote self-employment among women |
| Application Mode | Offline via bank or KSWDC office |
Key Objectives of the Udyogini Scheme
- To promote self-employment among women in Karnataka.
- To provide affordable financial assistance for starting or expanding small businesses.
- To empower SC/ST, widowed, and disabled women by offering them interest subsidies and training.
- To reduce economic dependency and foster women’s leadership in micro and small enterprises.
Who Can Apply? Eligibility Criteria
The scheme targets women who are passionate about starting their own business but lack the capital. To be eligible, the following conditions must be met.
- Gender: Applicant must be a woman.
- Age: Between 18 to 55 years.
- Residency: Must be a permanent resident of Karnataka.
- Family Income: Annual family income must not exceed ₹1.5 lakh. However, this limit does not apply to widows, physically challenged women, or women from SC/ST categories.
- Loan History: Applicant should not have defaulted on previous loans.
Loan Details and Subsidy Breakdown
Under this scheme, loans are offered in partnership with banks and financial institutions with partial government subsidy.
- Maximum Loan Limit: Up to ₹3,00,000.
- Subsidy for SC/ST Women: 50% of the loan amount (up to ₹1.5 lakh).
- Subsidy for Other Categories: 30% of the loan amount (up to ₹90,000).
- Loan Purpose: For establishing any of the 80+ approved small businesses, such as tailoring units, dairy farming, beauty parlors, or grocery stores.
The remaining amount (after subsidy) is to be repaid by the beneficiary in easy EMIs as per bank terms.
Business Categories Supported Under Udyogini
The scheme supports a wide range of businesses including.
- Agarbatti and candle making
- Tailoring and embroidery units
- Dairy or poultry farming
- Beauty salons and parlors
- Grocery or stationery shops
- Mobile repair or small electronic shops
- Food processing units
- Bamboo and jute product manufacturing
This diverse list ensures women from both urban and rural areas can choose businesses that match their skills and local demand.
Documents Required
To apply under the Udyogini Scheme, you need the following documents.
- Filled application form (available at KSWDC office or online)
- Aadhaar card (Identity proof)
- Address proof (Ration card / utility bill)
- Recent passport-size photographs
- Caste certificate (for SC/ST applicants)
- Income certificate from a competent authority
- Disability certificate (if applicable)
- Business proposal/project report
- Bank account passbook copy
How to Apply for Udyogini Scheme 2025?
- Visit the nearest KSWDC office, district women’s development cell, or a participating bank to collect the Udyogini application form
- Fill out the application form with accurate personal details, attach all required documents, and prepare a brief project report about your proposed business
- Submit the completed form and documents to the respective office or bank for review and verification
- After successful verification and approval, the loan amount will be disbursed to your bank account or directly to suppliers, and the subsidy will be applied based on your eligibility
Benefits of the Udyogini Scheme
- Access to Capital: Helps women overcome the financial barrier of starting a business.
- Government-Backed Subsidy: Reduces repayment burden with up to 50% subsidy.
- Focus on Marginalized Women: Gives special attention to SC/ST, widows, and differently-abled women.
- Skill Development: Some districts also provide business training or link applicants with NGOs for mentoring.
- Inclusive Growth: Encourages women to contribute to their family income and the local economy.
Where to Get More Information?
You can visit the official KSWDC portal.
Website: https://kswdc.karnataka.gov.in
Or visit your nearest women’s welfare office or any participating nationalized bank in Karnataka.
For how many years does one get the benefits of Udyogini Scheme?
The loan or financial assistance received under the Udyogini Scheme can be availed for a maximum of 10 years. That is, the loan received by the woman entrepreneur has to be repaid in a maximum period of 10 years. Within this period, the beneficiary has to repay the loan amount and the interest applicable on it (if any).
This time limit gives women entrepreneurs enough time to establish and grow their business. As per the terms of the scheme, this period is decided by the bank or financial institution, but the maximum limit is 10 years.
What is the interest rate of loan under Udyogini Scheme?
The interest rate of the loan under Udyogini Scheme is generally between 10% to 12%, which may vary according to the bank or financial institution. However, special categories such as widows, Divyangs and women from SC/ST category are given interest free (0% interest) loans.
On some government portals, this interest rate is also mentioned as 6%, but according to most sources, it ranges between 10%–12% for general women. Hence, the interest rate is decided according to the category of the beneficiary and the concerned bank.
Final Words
The Udyogini Scheme is more than just a loan program—it’s a gateway to economic freedom for women in Karnataka. By providing financial support, handholding, and empowerment, the scheme enables women to turn their dreams of entrepreneurship into reality.
If you are a woman from Karnataka with a business idea, don’t let the lack of funds hold you back. Apply for the Udyogini Scheme today and take the first step toward a confident and independent future.