The Karnataka Udyogini Scheme is a flagship initiative by the Government of Karnataka that provides collateral-free business loans up to Rs. 3,00,000 to women entrepreneurs across the state. Launched in 1997 and updated twice since, the scheme also offers a subsidy of up to 50% on the loan amount for SC/ ST women, meaning they repay only half of what they borrow. If you are a woman between 18 to 55 years of age looking to start or expand a business in Karnataka, this scheme is designed for you.
Karnataka Udyogini Scheme Highlights | |
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| Scheme Name | Karnataka Udyogini Scheme. |
| Date of Launch |
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| Benefits Provided |
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| Eligible Beneficiaries | Women Entrepreneurs of Karnataka |
| Responsible Agency | Karnataka State Women Development Corporation. |
| How to Apply | Udyogini Scheme Karnataka Application Form. |
| Free Scheme Updates | WhatsApp | Telegram |
Introduction of Karnataka Udyogini Scheme: A Brief Insight
The Karnataka Udyogini Scheme was first launched in 1997-1998 by the Government of Karnataka with one clear goal – to make women financially independent by supporting them in starting their own businesses. The scheme was later amended in 2004-2005 and again in 2015-2016 to expand its reach and increase loan limits as per current market needs.
The scheme is implemented by the Karnataka State Women Development Corporation (KSWDC) with support from Child Development Project Officers (CDPO) and Women Development and Child Officers at the district level. Loans are disbursed through registered banking and financial institutions after a thorough verification process.
What makes this scheme stand out is its subsidy component. Women from SC/ ST categories receive a 50% subsidy (up to Rs. 1,50,000) on their loan, meaning they only need to repay half. Women from General and Special categories receive a 30% subsidy (up to Rs. 90,000). This significantly reduces the financial burden on first-time entrepreneurs.
The scheme is focused on trade and service sector businesses – from food processing and textile work to manufacturing and small retail. Preference in selection is given to extremely poor, physically disabled, widowed, and destitute women applicants. Before loan disbursement, selected beneficiaries are required to complete a 3 to 6-day EDP (Entrepreneurship Development Programme) training to help them manage their businesses effectively.
Women applicants can travel free of cost in buses within Karnataka under the “Shakti Scheme”.
Trades and Businesses Eligible Under the Udyogini Scheme
The Karnataka Udyogini Scheme focuses on trade and service sector businesses. The following types of businesses are eligible for loan support under this scheme:
- Book Binding and Notebook Manufacturing.
- Woollen Weaving.
- Dyeing and Printing of Cloths.
- Embroidery and Saree Work.
- Manufacturing of Papad.
- Manufacturing of Pickles.
- Manufacturing of Jam and Jelly.
- Chalk and Crayon Manufacturing.
- Other trade and service sector businesses, as approved by the concerned authority.
If you are unsure whether your business idea qualifies, visit your nearest CDPO office or the Karnataka State Women Development Corporation district office for guidance before applying.
Benefits Provided to Eligible Beneficiaries
All eligible women beneficiaries will get the following benefits under the Karnataka Government’s Udyogini Scheme:
- A collateral-free business loan will be provided.
- Repayment Period of the Loan is 36 Months.
- Women Beneficiaries can get a maximum loan of Rs. 3,00,000/- for their Business under the Udyogini Scheme.
- Karnataka Government will also provide a subsidy on the loan taken.
- 50% Subsidy will be provided to Women Beneficiary belongs to the Scheduled Caste/Scheduled Tribe Category.
- Whereas, General and Special Category Women Beneficiaries will get 30% Subsidy on loans from the Karnataka Government.
- This means SC/ ST applicants will have to return only half the loan amount and general and special category applicants will have to return 70% of the loan amount.
How This Scheme Can Change Your Life – Real Business Potential
Many women who have availed the Udyogini Scheme have used the loan to start small food processing units, tailoring shops, or retail businesses – and grown them into stable income sources within 2 to 3 years. Here is a realistic picture of what you can do with a Rs. 3,00,000 loan:
- Papad / Pickle / Jam Manufacturing: Setup cost of Rs. 80,000 to Rs. 1,50,000. Monthly income potential of Rs. 15,000 to Rs. 25,000 once distribution is established.
- Tailoring and Embroidery Unit: Equipment cost of Rs. 50,000 to Rs. 1,00,000. Monthly income of Rs. 10,000 – Rs. 20,000 depending on order volume.
- Small Retail Shop: Stock and setup within Rs. 1,50,000 to Rs. 2,50,000. Steady monthly income of Rs. 12,000 to Rs. 18,000 in a good location.
- Notebook / Book Binding Unit: Suitable for women near schools and colleges. Setup cost Rs. 1,00,000 to Rs. 2,00,000 with seasonal high income during school months.
With a 50% subsidy (for SC/ ST applicants), the effective repayment on a Rs. 3,00,000 loan is only Rs. 1,50,000 – spread over 36 months, which comes to roughly Rs. 4,200 per month. For General category applicants, it is Rs. 2,10,000 repayable – around Rs. 5,800 per month. Most of the eligible businesses can generate returns well above this repayment amount from the first year itself.
Eligibility Conditions Required to be Fulfilled
Loan for business and subsidy on the provided loan will only be provided to those beneficiaries who fulfil the following Udyogini Scheme eligibility criteria:
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Documents Required to be Attached
Applicant Women will have to attach the documents mentioned below with the Government of Karnataka’s Udyogini Scheme Application Form at the time of applying for a 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 a 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 application process for the Udyogini Scheme is completely offline. There is no online portal available as of now. Follow the steps below to apply:
- Collect the Application Form – Visit your nearest Child Development Project Officer (CDPO) office, Karnataka Women Development Corporation district office, or District Industries Centre (DIC) and collect the Udyogini Scheme application form.
- Fill the Form Carefully – Fill in all required details without any errors. Attach all necessary documents as listed in the Documents Required section below.
- Submit the Application – Submit the completed form along with all documents at the CDPO office or the District Office of Women Development Corporation.
- Scrutiny by Officials – Officials will verify the application and documents and prepare a list of eligible beneficiaries based on the defined criteria and reservation guidelines.
- Forwarding to Bank – The selected beneficiary list is forwarded to empanelled financial institutions or commercial banks for loan approval.
- Bank Verification – The bank will again verify applications and give final approval. Selected women will be notified via SMS at their registered mobile numbers.
- Complete EDP Training – Before the loan is released, it is mandatory to complete a 3 to 6-day Entrepreneurship Development Programme (EDP) training organised by the department.
- Loan Disbursement – After training, the loan amount is transferred directly to the beneficiary’s bank account. The government subsidy is directly credited to the bank separately.
To check your Udyogini Scheme application status, visit your nearest CDPO office with your application receipt.
Important Links Available
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.
Frequently Asked Questions (FAQs) – Karnataka Udyogini Scheme
Q1. What is the Karnataka Udyogini Scheme?
The Karnataka Udyogini Scheme is a government initiative that provides collateral-free business loans up to Rs. 3,00,000 along with a subsidy to women entrepreneurs in Karnataka to help them start or expand their businesses.
Q2. How much loan can I get under this scheme?
Eligible women can get a maximum loan of Rs. 3,00,000 under the Udyogini Scheme. The minimum business unit cost should be Rs. 1,00,000 to be eligible.
Q3. What is the subsidy provided under the Udyogini Scheme?
Women from SC/ST categories receive a 50% subsidy on the loan amount, up to a maximum of Rs. 1,50,000. Women from General and Special categories receive a 30% subsidy, up to a maximum of Rs. 90,000.
Q4. What is the repayment period for the loan?
The repayment period for the loan taken under the Udyogini Scheme is 36 months (3 years).
Q5. Is collateral required to get the loan?
No. The Udyogini Scheme provides completely collateral-free loans to eligible women beneficiaries.
Q6. What is the age limit to apply?
Women between 18 years and 55 years of age are eligible to apply for the Udyogini Scheme loan.
Q7. What is the income limit for applicants?
For SC/ST applicants, the family’s annual income should not exceed Rs. 2,00,000. For General and Special category applicants, it should not exceed Rs. 1,50,000 per year. There is no income limit for widows and disabled women applicants.
Q8. Can a widow or disabled woman apply without income proof?
Yes. The Karnataka Government has specifically exempted widows and disabled women applicants from the income criteria. They can apply regardless of their annual family income.
Q9. Is an online application available for the Udyogini Scheme?
No. As of now, there is no online application facility available. Women applicants must apply through the offline form available at the CDPO office or the District Women Development Corporation office.
Q10. What is EDP training and is it mandatory?
EDP stands for Entrepreneurship Development Programme. It is a 3 to 6-day training session that teaches beneficiaries how to manage their business effectively. Completing this training is mandatory before the loan amount is released.
Q11. Where do I submit the Udyogini Scheme application form?
The application form can be submitted at the Child Development Project Officer (CDPO) office or the District Office of the Karnataka State Women Development Corporation.
Q12. Which businesses are eligible under the Udyogini Scheme?
The scheme covers trade and service sector businesses such as papad and pickle manufacturing, embroidery, cloth dyeing, notebook making, woollen weaving, jam and jelly production, and other similar small-scale businesses.
Q13. How will I know if my application is selected?
Selected applicants are notified via SMS at their registered mobile number. You can also check your application status by visiting the CDPO office with your application receipt.
Q14. Can I apply if I already run a business?
Yes, the scheme supports both new and existing businesses. However, the business unit cost must be between Rs. 1,00,000 and Rs. 3,00,000 to qualify for the loan.
Tabassum is a government schemes researcher and writer with 5 years of experience tracking Central and State welfare programmes across India. She has covered 500+ schemes spanning agriculture, women welfare, education, and housing, helping lakhs of beneficiaries understand their entitlements in simple language.