Udyogini Scheme is an initiative by the Government of India to empower women by providing them with financial assistance to start and grow their businesses. Udyogini scheme is aimed at women entrepreneurs in rural and underdeveloped areas of India.
Let’s dive into the details of the Udyogini Yojana 2024, including eligibility criteria, application process, required documents, and the benefits of the scheme.
What is the Udyogini Scheme?
The Udyogini Scheme is designed to support women entrepreneurs by offering them business loans with low or zero interest rates. This scheme helps women from various backgrounds, including those who are disabled, widowed, or from underprivileged communities, to start and run their businesses in different sectors such as manufacturing, retail, and services.
Eligibility for Udyogini Scheme Loan
To apply for the Udyogini Scheme, applicants must meet the following eligibility criteria:
- Gender: The applicant must be a woman.
- Age: Applicants must be between 18 and 55 years old.
- Income: The annual family income of the applicant must be less than Rs. 1.5 lakh. There is no income limit for disabled, widowed, or destitute women.
- Business Type: The scheme supports businesses in small-scale industries, retail, manufacturing, trade, self-employed professions, and related categories.
- Credit Score: Applicants must have a good credit score.
List of Business Categories Approved Under Udyogini Yojana
| Business Categories | |
|---|---|
| Agarbatti manufacturing | Diagnostic lab |
| Audio-video parlour | Dry cleaning |
| Bakeries | Dry fish trade |
| Banana leaf manufacturing | Eat outs |
| Beauty Parlour | Edible oil trade |
| Bangles | Energy food |
| Bed sheet and towel manufacturing | Fair trade shop |
| Books and notebooks binding | Fax paper manufacturing |
| Bottle cap manufacturing | Fish stalls |
| Bamboo article manufacturing | Flower shops |
| Canteen and catering | Flour mills |
| Creche | Fuel wood |
| Clinic | Footwear manufacturing |
| Condiments | Gift articles |
| Coconut shop | Gym centres |
| Chalk crayon manufacturing | Handicrafts manufacturing |
| Chappal manufacturing | Household article retail |
| Cleaning powder | Ice cream parlour |
| Coffee and tea powder | Ink manufacturing |
| Corrugated box manufacturing | Jams, jellies and pickles manufacturing |
| Cotton thread manufacturing | Typing and photocopy |
| Cut-piece cloth trade | Jute carpet manufacturing |
| Dairy and poultry trade | Library |
| Leaf cup manufacturing | Mat weaving |
| Matchbox manufacturing | Milk booth |
| Mutton stalls | Newspaper, weekly and monthly magazine vending |
| Nylon button manufacturing | Old paper mart |
| Pan and cigarette shop | Pan masala shop |
| Papad manufacturing | Phenyl and naphthalene |
| Photo studio | Plastic article shop |
| Printing and dyeing | Quilt and bed manufacturing |
| Radio and TV service | Ragi powder shop |
| Readymade garment | Real estate agency |
| Ribbon manufacturing | Sari & embroidery |
| Security service | Shikakai powder manufacturing |
| Silk weaving | Shops and establishment |
| Silk thread manufacturing | Silk-worm rearing |
| Soap oil, cake manufacturing | Stationery shop |
| STD booths | Sweet shops |
| Tailoring | Tea stall |
| Travel agency | Tutorials |
| Typing institute | Vegetable vending |
| Vermicelli manufacturing | Wet grinding |
| Woolen garment manufacturing | |
Documents Required for Udyogini Scheme
When applying for the Udyogini Scheme, you need to submit the following documents:
- Three colored passport-size photographs
- Ration card or voter ID card
- Detailed Project Report (DPR) of the business
- Certificate of training or experience in the business activity
- Family’s annual income certificate
- Caste certificate (if applicable for SC/ST applicants)
- Quotations for machinery, equipment, and capital expenses
How to Apply for Udyogini Yojana Online
Here are the steps to apply for the Udyogini Scheme online:
- Visit the Official Website: Go to the official website of the bank offering loans under the Udyogini Scheme.
- Fill the Application Form: Find and click on the Udyogini Scheme link to access the application form.
- Submit Application: Complete the form with accurate details and submit it online.
- Verification: The CDPO will verify your application and documents.
- Approval: If your application is approved, the bank will process your loan and disburse the amount to your bank account or directly to suppliers for equipment and capital expenses.
However, most of the banks and financial institutions are accepting the offline applications for the Udyogini Yojana, so, visit your nearest bank branch.
How to Apply for Udyogini Scheme Offline
You can also apply for the Udyogini Scheme offline by following these steps:
- Get the Application Form: Obtain the form from the Deputy Director, CDPO office, or the bank’s official website.
- Visit the Bank: Go to the nearest bank offering the Udyogini Scheme with the required documents.
- Submit the Form: Fill out and submit the application form along with the necessary documents.
- Verification and Approval: The bank will verify your documents and project proposal. If approved, the loan amount will be disbursed to your account or directly to suppliers.
Benefits of Scheme
The Udyogini Scheme offers several benefits to women entrepreneurs, including:
- Loan Amount: Up to Rs. 3 lakhs.
- Interest-Free Loans: For businesses in the agricultural sector and for disabled, Dalit, and widowed women.
- Subsidy: 30% subsidy on loans to help with repayment.
- Support for Various Businesses: Covers 88 small-scale industries.
- Skill Development: Provides functional skills in business planning, pricing, and more.
- Transparent Process: Ensures a smooth and fair assessment of applications.
Financial Support and Subsidies Under Udyogini Yojana
| Category | Subsidy | Maximum Loan Amount | Income Limit |
|---|---|---|---|
| Scheduled Caste / Scheduled Tribe | 50% of loan amount | ₹1,00,000 to ₹3,00,000 | Below ₹2,00,000 per annum |
| Special Category | 30% of loan amount or ₹90,000 | Up to ₹3,00,000 | Below ₹1,50,000 per annum |
| General Category | 30% of loan amount or ₹90,000 | Up to ₹3,00,000 | Below ₹1,50,000 per annum |
Highlights
| Feature | Details |
|---|---|
| Target Beneficiaries | Women aged 18-55, with annual family income < Rs. 1.5 lakh |
| Loan Amount | Up to Rs. 3 lakhs |
| Interest Rate | 0% for specific categories; 10-12% for others |
| Subsidy | 30% |
| Business Sectors Covered | 88 small-scale industries |
| Application Modes | Online and Offline |
| Required Documents | ID proof, income certificate, project report, etc. |
Frequently Asked Questions
1. What is the Udyogini Scheme?
Udyogini Scheme is a government initiative to provide financial assistance to women entrepreneurs in rural and underdeveloped areas, helping them start and grow their businesses.
2. Which bank offers loans under the Udyogini Scheme?
Various commercial banks, private banks, Regional Rural Banks (RRBs), district cooperative banks, and non-banking financial institutions offer loans under the Udyogini Scheme.
3. What are the eligibility criteria for the Udyogini Scheme?
Women aged 18-55 with an annual family income of less than Rs. 1.5 lakh are eligible. Disabled, widowed, and destitute women have no income limit.
4. What is the interest rate for the Udyogini Scheme?
Interest-free loans are available for disabled, Dalit, and widowed women. Other women may have to pay 10-12% interest.
5. Can I apply for the Udyogini Scheme for a homestay business?
No, the Udyogini Scheme is for setting up businesses and enterprises, not for home-stays.
6. How can I apply for the Udyogini Scheme?
You can apply online through the bank’s official website or offline by visiting the bank with the required documents.
Udyogini Yojana is a great opportunity for women in rural and underdeveloped areas to become financially independent and contribute to the economy. By providing financial support and skills training, this scheme helps women entrepreneurs thrive and succeed in their ventures.