Apply for Udyogini Scheme for Indian Women Entrepreneurs

Women in India are currently the largest reservoir of talent who are driving the business world. As per the Udyam registration data 2025, women now own over 40% of MSMEs in India. The key factor driving this growth is women’s empowerment. The Udyogini Scheme for women entrepreneurs is at the heart of both empowerment and entrepreneurship.

As actively as women are part of the business community, it is still challenging for them to get business financing. Udyogini yojana scheme makes it easier for them to get a business loan and expand their business. Explore how to apply for the Udyogini Yojana scheme online.

What is the Udyogini Scheme?

The Udyogini Scheme is a government-sponsored scheme that provides business loan facilities on a subsidised basis to women entrepreneurs. It primarily aims at empowering women belonging to the economically weaker sections of society. It includes those from Scheduled Castes (SC), Scheduled Tribes (ST), living in rural areas and falling under the Below Poverty Line (BPL) category.

Women nearly make up 50% of India’s population but contribute only 18% to the country’s GDP. Although the number of Indian women entrepreneurs is rising, they still face obstacles such as restricted access to capital. The Udyogini Scheme offers them easier access to capital.

The Government of Karnataka initially introduced the scheme. The Central Government later adopted it across India to support women in establishing businesses, becoming self-reliant and increasing the participation of women in economic activities by providing low-interest or interest-free loans.

Key Features of the Udyogini Scheme

Here are the key features of the Udyogini Scheme you must consider before you apply for the Udyogini Scheme:

• Loan Amount: The scheme enables you to get business loans for women of up to ₹3 lakhs to address multiple business requirements.
• Collateral Free: The scheme offers collateral-free business loans, which eliminates the need to provide any assets as security.
• Subsidy: You receive a 30 % subsidy (Special benefit for SC/ST and BPL), which varies based on the category.
• Interest Rate: As compared to the formal lending options, the interest rate of the Udyogini scheme is low and starts at only 6% per annum.
• Institutional Support: There are many government agencies and financial institutions that back the scheme, giving you more lenders to choose from.
• Sector Diversity: The Udyogini scheme focuses on different sectors, including agriculture, handicrafts, retail, and various service industries.
• Economic Self-Reliance: The scheme promotes financial independence among women entrepreneurs by giving them easy access to business capital.

Benefits of the Udyogini Scheme

The unit cost for women who are members of Scheduled castes and Scheduled tribes ranges from ₹1,00,000 to ₹3,00,000. 50% of the loan amount is subsidised. Also, the family’s annual income cannot exceed ₹2,00,000.

The maximum unit cost for women in the general and special categories is ₹3,00,000. Special category women get a 30% subsidy, whereas general category women receive a maximum of ₹90,000, with specific recipients receiving EDP training. Here are the key financial benefits of the Udyogini scheme that you must know as a woman entrepreneur:

• Comprehensive Financial Support: It provides capital for both new business ventures and the expansion of already existing businesses.
• Promote Self-reliance: The Udyogini scheme reduces dependency on informal credit sources that often charge higher interest rates.
• Special Considerations: It offers additional advantages for women from SC/ST communities and BPL families.
• Accessible Financing: The Udyogini yojana scheme eliminates collateral requirements, making business loans more accessible to women without significant assets.
• Skill Enhancement: To help women enhance their expertise in their chosen fields, it provides skill development and training programs.
• Reduced Financial Pressure: The low interest rate allows businesses to expand and grow without the burden of excessive debt.

Women entrepreneurs requiring business financing can go beyond what the Udyogini Scheme provides. You can also apply for FlexiLoans business loans for women entrepreneurs. We offer quick, hassle-free loans and customised repayment options.

Eligibility Criteria for the Udyogini Scheme

Women entrepreneurs must meet specific eligibility requirements to qualify for the Udyogini Scheme:

General: 10-12% Special Cases: No interest

Documents Required for Udyogini Scheme Application

Preparing the accurate documentation is crucial for a successful Udyogini Scheme application. Here are the documents you must keep ready to avoid delays or rejections:

How to Apply for Udyogini Scheme?

Follow these steps for an easy Udyogini Yojana scheme apply online application process:

1. Ensure Eligibility: You must be a woman between 18 and 55 years old with Indian citizenship and an income below ₹1.5 lakh.
2. Gather all Necessary Documentation: Gather documents like identity proof, address proof, income proof, business documentation and banking information.
3. Visit a Participating Financial Institution: There are many banks, NBFCs and financial institutions that participate in the Udyogini Scheme. Visit the lender with the required documents.
4. Fill out the Application Form: Collect the Udyogini scheme application form from the participatory lender or institution and fill it out with the correct details.
5. Attach all Required Documents: Attach all the required documents you have brought with you, ensuring accuracy and completeness.
6. Submit the Application: Finally, submit the Udyogini Scheme loan application with the form and required documents.
7. Await Verification and Approval: Your documents and details will now go under verification. Once the bank or lender approves your application, you will receive the money.

For those who prefer digital applications, several financial technology companies now offer streamlined online loan processes with quick disbursements.

Business Sectors Covered Under the Udyogini Scheme

The Udyogini Scheme supports multiple industries, enabling women to establish and grow businesses across diverse sectors:

1. Agriculture and Allied Activities

Women entrepreneurs engaged in poultry, dairy, farming, fisheries, and other agricultural ventures can utilise funds from the Udyogini Scheme to purchase equipment, seeds, fertilisers, and livestock. This financial support enables rural women to improve productivity and enhance the profitability of their agricultural businesses.

2. Retail and Trading Businesses

The Udyogini yojana scheme provides valuable support for small retail establishments, grocery shops, Kirana shops, textile businesses, and various trading activities. Women entrepreneurs can use these business loans to expand operations, stock inventory and build a stronger customer base for their retail enterprises.

3. Handicrafts, Textiles, and Cottage Industries

Traditional crafts such as handloom weaving, pottery, embroidery, and other artisanal activities receive support under the Udyogini Scheme. These loans enable women artisans to acquire raw materials, upgrade machinery, and develop marketing resources to scale their ventures effectively.

4. Service-Based Businesses

Women operating beauty parlours, tailoring units, repair shops, or small service centres can benefit significantly from the scheme. You can use the funds for equipment purchases, infrastructure improvements, and skill development initiatives to enhance service quality.

Business Categories Eligible for the Udyogini Scheme

Here is a list of businesses that are eligible for Udyogini yojana scheme:

Udyogini Scheme vs Other Women Entrepreneurship Schemes

Understanding how the Udyogini Scheme compares with other government initiatives helps women entrepreneurs select the most suitable financing option:

The Udyogini Scheme provides up to ₹3 lakhs without collateral, specifically supporting small-scale industries. Mudra Yojana offers higher amounts (up to ₹10 lakhs) for micro and small businesses, also without collateral requirements.

Stand-Up India provides substantial funding (₹10 lakhs to ₹1 crore) but requires collateral, focusing on SC/ST individuals and women-led greenfield enterprises. The Annapurna Scheme offers more modest financial assistance (up to ₹50,000), specifically targeting women in food-related businesses.

Entrepreneurship Development Program (EDP) Under Udyogini

The Entrepreneurship Development Program (EDP) is both an integral and mandatory component of the Udyogini Scheme. This training initiative is for qualified applicants who can access it after loan sanction but before fund disbursement. The program equips women entrepreneurs with essential business management skills, including:

• Financial record-keeping
• Marketing strategies
• Inventory management
• Business planning
• Customer relationship management
• Basic accounting principles

The EDP serves as a crucial educational platform that prepares women to effectively manage their day-to-day business operations, enhancing their chances of entrepreneurial success. This holistic approach combines financial support with practical knowledge. It creates a comprehensive system that addresses both monetary and skill-based challenges faced by women entrepreneurs.

Functional Literacy Support

Beyond financial assistance, the Udyogini Scheme incorporates skill development programs to promote functional literacy among women in economically disadvantaged regions. This educational component helps semi-literate adult women perform essential business tasks independently, including:

• Basic reading and writing
• Fundamental calculations
• Record maintenance
• Simple business correspondence

This functional literacy support represents the scheme’s commitment to holistic empowerment, recognising that entrepreneurial success requires both financial resources and practical capabilities.

Impact of the Udyogini Scheme on Women’s Entrepreneurship

The Udyogini Scheme has made significant contributions to women’s entrepreneurship in India, particularly in rural and semi-urban areas. Its impact extends beyond mere financial assistance:

• Economic Empowerment: The Udyogini Scheme is helping thousands of women establish successful businesses across various sectors.
• Social Transformation: It is enhancing financial independence among women and improving women’s social status and decision-making authority.
• Job Creation: Women-led businesses supported by the scheme have generated employment opportunities for other community members.
• Rural Development: Increased entrepreneurial activity is contributing to economic growth in rural areas.
• Skill Enhancement: Training components are improving the capabilities of women entrepreneurs.

The scheme’s multifaceted approach addresses not only the financial barriers but also the educational and social challenges that have traditionally limited women’s participation in entrepreneurial activities.

Empower Your Business with Low-interest Business Loans

Women’s empowerment and entrepreneurship are essential in order to achieve gender equality. The Udyogini Scheme is what bridges that gap. The scheme is empowering women by offering convenient financial services to start and grow businesses in different sectors. The non-collateral loan also helps more prospective entrepreneurs obtain loans.

If you are looking for an equally beneficial but more accessible alternative, apply for a FlexiLoans loan for women entrepreneurs. Unlike the Udyogini Scheme, FlexiLoans offers loan amounts of up to ₹50 lakh. Besides all this, the low interest rate and flexible options make repayment easier.

FAQs about Udyogini Yojana Scheme