Karnataka Udyogini Scheme

Women Entrepreneurs can now avail the benefit of collateral-free loans under the Udyogini Scheme of the Karnataka Government. A maximum loan of Rs. 3,00,000/- will be provided to eligible women beneficiaries under this scheme.
Read full article to know more.

Introduction of Karnataka Udyogini Scheme: A Brief Insight

• Government of Karnataka launched Udyogini Scheme initially in the year 1997-1998.
• After that, the government amended it as per requirement, first amended it in the year 2004-2005 and after that in the year 2015-2016.
• The main aim of Udyogini Scheme is to provide financial support to women entrepreneurs so that they can make themselves financially independent and self reliant.
• This scheme is mainly focused on trade and service sector business.
• Karnataka Government’s State Women Development Corporation is the implementing agency of this scheme which is implemented in State with the help of Child Development Project Officer and Women Development and Child Officer.
• Karnataka Government under Udyogini Scheme will provide financial support as a loan to women entrepreneurs through banking and financial institutions.
• To diminish the burden of loan, government will also provide subsidy on the loan amount.
• Women Entrepreneurs can take maximum loan amount of Rs. 3,00,000/- under Udyogini Scheme for their businesses.
• Loans provided under Udyogini Scheme is completely collateral free.
• The subsidy which are provided by Karnataka Government to beneficiaries of Udyogini Scheme are :-
  

  Category/Caste	Subsidy Amount
  Schedule Caste Schedule Tribe	50% of Loan amount. Maximum of Rs. 1,50,000/-.
  General Category Special Category	30% of Loan Amount. Maximum of Rs. 90,000/-.

• This means SC and ST women applicants will only have to return only the half amount of loan.
• Whereas, other category applicants will have to return the 70% amount of loan.
• Karnataka Government has also set the income criteria under this scheme in which the Family’s Annual Income limit for SC and ST Applicant is maximum Rs. 2,00,000/- per year and for General and Special Category Applicant, the annual family income limit is maximum Rs. 1,50,000/- per year.
• However for Widow and Disabled Women Applicant, there will be no maximum annual income limit fixed.
• Women Entrepreneurs of 18 years to 55 years of age are only eligible to apply for loan under Udyogini Scheme.
• Women Beneficiary will also haveve to complete the EDP training of 3 to 6 days under Udyogini Scheme of Karnataka Government before disbursement of loan.
• Preference in selection for loan will be provided to extremely poor, physically disabled, widow and destitute women applicants.
• The Eligible Trade and Services Sector Businesses which are eligible for loan under Udyogini Scheme are mentioned below :-
  • Book Bindings and Notebook Manufacturing.
  • Woolen Weaving.
  • Dyeing and Printing of Cloths.
  • Embroidery and Saree Work.
  • Manufacturing of Papad.
  • Manufacturing of Pickles.
  • Manufacturing of Jam and Jelly.
  • Chalk and Cryon Manufacturing.
  • And other businesses also.
• At present there is no facility available to apply for loan under Karnataka Udyogini Scheme through Online.
• Also there is no Udyogini Scheme Official Website is available.
• So, women applicant will have to fill the offline application form of udyogini scheme and submit it in the office of Child Development Project Officer or District Industries Centres Office or in the Office of State Women Development Corporation.
• Loan amount will be disbursed by banking institutions after thorough verification.
• In case of any help or assistance required regarding Udyogini Scheme, women beneficiary can contact their areas Child Development Project Officer Office.

Benefits Provided to Eligible Beneficiaries

• All Eligible Women Beneficiary will get the below-mentioned benefits under Karnataka Government’s Udyogini Scheme :-
  • Collateral Free Business Loan will be Provided.
  • Repayment Period of Loan is 36 Months.
  • Women Beneficiary can get Maximum Loan of Rs. 3,00,000/- for their Business under Udyogini Scheme.
  • Karnataka Government will also provide subsidy on the taken loan.
  • 50% Subsidy will be Provided to Women Beneficiary belongs to Schedule Caste/ Schedule Tribe Category.
  • Whereas, General and Special Category Women Beneficiary will get 30% Subsidy on Loan from Karnataka Government.
  • This means SC/ ST applicant will have to return only half amount of loan and general and special category applicant will have to return 70% of loan amount.

Eligibility Conditions Required to be Fulfilled

• Loan for business and subsidy on the provided loan will only provided to those beneficiaries who fulfill the following Udyogini Scheme eligibility criteria :-
  

  Only Women Entrepreneurs are Eligible to Apply. Women Applicant should be Karnataka’s Permanent Resident. Age of Women Applicant should be between 18 years to 55 years. The Cost of Applicant’s Business Unit should be between Rs. 1 Lakh to Rs. 3 Lakh. Women Applicant’s Family Annual Income should be :- For Schedule Caste and Schedule Tribe Applicant :- Not More than Rs. 2 Lakh per Year. For Special Category and General Category :- Not More than Rs. 1.50 Lakh per Year. There will be no Income Criteria set for Disabled and Widow Women.

Documents Required to be Attached

• Applicant Women will have to attach the below mentioned documents with Udyogini Scheme Application Form at the time of applying for loan for business :-
  • Residence Proof or Domicile of Karnataka.
  • Beneficiary Women Aadhaar Card.
  • Certificate of Income.
  • Ration Card or Below Poverty Line Ration Card.
  • Certificate of Caste. (For SC and ST Applicant)
  • Category Certificate. (If Applicant is Widow or Disabled)
  • Bank Account Number and IFSC Code.
  • Mobile Number and Email ID.
  • 3 Passport Size Photographs.
  • Detailed Project Report of Business. (Quotation)

How Beneficiaries Can Apply to Avail the Benefit of this Scheme

• The only way to apply for loan for business under Udyogini Scheme of Karnataka is through Offline Application Form.
• Udyogini Scheme Application Form can be collected from Child Development Project Officer or from Karnataka Women Development Corporation District Office or from District Industries Centers.
• Take Application Form and fill it without any mistake and attach all the document with it.
• Beneficiary Women Applicant will have to submit Udyogini Scheme Application Form along with all the documents in the Office of Child Development Project Officer or District Office of Women Development Corporation.
• Officials will scrutinize the application form and documents and prepare the list of eligible beneficiaries.
• Selected Women Beneficiary List will then be forwarded to financial institutions/ commercial banks for the approval and disbursement of loan under Udyogini Scheme.
• Concerned Bank will then again verified the applications and final select the women beneficiaries.
• Women Beneficiary will be notified through SMS on their registered mobile number.
• Loan amount of Udyogini Scheme will then directly transferred in the bank account of women beneficiary.
• Karnataka Government will then provide the subsidy amount directly to bank who disburse the loan amount.
• Remaining loan amount will be paid by the beneficiary women to bank at applicable interest rate.
• It is mandatory for a women beneficiary to take 3 to 6 days EDP training before the release of loan amount under Udyogini Scheme.
• Udyogini Scheme Application Status can be checked by visiting the CDPO Office.

Important Links Available

• Official Website of State Women Development Corporation Karnataka.

Contact Details in Case of Help Needed

• Contact Number of State Women Development Corporation Karnataka :- 080 26632973.
• Contact Email of State Women Development Corporation Karnataka :- md.kswdc@gmail.com.
• Address of State Women Development Corporation Karnataka :-
  5th Floor, Jayanagar Shopping Complex,
  Jayanagar, Bangalore – 560011.

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