Udyogini Scheme

DETAILS Started in the year 1997-1998 (and amended in the year 2004-2005), Udyogini is an innovative scheme sanctioned by the Government of Karnataka to assist women in gaining self-reliance and economic independence through self-employment, mainly through trade and the service sector. It also provides for a subsidy on loans from the Karnataka State Women’s Development Corporations for undertaking business activities/ micro enterprises through banks and other financial institutions. Loans are disbursed through financial institutions like commercial banks, district cooperative banks, and Regional Rural Banks (RRBs).  In absence of a structured credit system, women would take loans from private borrowers and end up paying a high rate of interest. Hence, there was felt a need to have in place formal channels of credit which are accessible to women. Profitable business activities are approved and supported under this scheme. They may be bookbinding and notebooks manufacturing, chalk and crayon manufacture, jam, jelly, pickles manufacture, papad manufacture, saree, and embroidery work, printing and dyeing of clothes, and woolen weaving, amongst others. Udyogini gives adequate opportunities to such women to help them be self-employed. BENEFITS For women belonging to the Scheduled caste and Scheduled tribe, the unit cost is a minimum ₹ 1,00,000 to a maximum of ₹ 3,00,000. The subsidy is 50% of the loan amount, income limit of the family should be below ₹ 2,00,000 per year. For women belonging to the special category and general category maximum unit cost is ₹ 3,00,000. Subsidy for special category women and for general category women is 30% or a maximum of ₹ 90,000/-. With EDP training for selected beneficiaries. ELIGIBILITY The applicant should be a woman. The family income of the applicant should be less than ₹ 1,50,000/- for women belonging to general and special categories. No limit on family income for widowed or disabled women. The age of the applicant should be between 18 to 55 years for all categories. The applicant should be a permanent resident of Karnataka. The applicant should not have defaulted on any past loan with any financial institution.  Reservation / Preference / Priority Preference must be given to the extremely poor, destitute, widow, and physically challenged. In addition, preference may be given to candidates who have undergone prior skill development training or vocational training conducted by any KSWDC or any other department. About 10% of the allocated target has been earmarked to benefit applicants of members of World Bank-assisted Swashakthi or Stree Shakthi groups.