Udyogini Scheme – Karnataka
What is the Scheme?
The Udyogini Scheme is a government programme by the Karnataka State Women’s Development Corporation (KSWDC) aimed at empowering women entrepreneurs in Karnataka by providing financial assistance and subsidies to start or expand micro‐enterprises, especially in trade and service sectors.
It was launched circa 1997-98 and remains active.
Key Features & Benefits for Business Owners
Loan assistance: Women can access loans up to ~₹3 lakh for business activities (manufacturing, trade, services) under certain conditions.
Subsidy on loan/project cost: For eligible women, subsidies range from 30% to 50% depending on category (SC/ST, general) and state policy.
Lower or no interest: In some cases, the scheme enables interest-free or very low interest loans for disadvantaged women (widows, disabled) in this scheme.
Sector flexibility: The scheme permits trade, service, small manufacturing and retail business ventures.
Eligibility Criteria (What You Need to Meet)
You must be a woman entrepreneur.
Age: Typically 18 to 55 years.
Annual family income: Usually below ₹1.5 lakh for general categories. For special categories (widow, disabled, SC/ST) income ceiling may be relaxed.
Resident of Karnataka (for the Karnataka scheme implementation).
The business activity must be viable, in the trade/service/microenterprise sector as specified.
How to Apply (Business Owner Steps)
Prepare your business plan/project report — define what enterprise you will set up (trade, service, manufacturing) under the scheme.
Approach the designated financial institution (commercial bank, cooperative bank or regional rural bank) which participates in the scheme.
Submit the required documents: identity proof, age proof, residence, income certificate, business proposal, etc.
Upon sanction of loan + subsidy under the scheme, start your business activities under the defined terms (repayment schedule, utilisation of funds, records).
Comply with scheme terms: you may be eligible for subsidy only if you meet conditions such as employment generation, business start within defined period.
Why This Scheme Matters for You
Reduces the financial barrier to starting a business for women by offering capital support + subsidy.
Helps you become self-employed or scale up a small venture with support tailored for women.
Because the scheme is state-government backed, offers better terms (subsidies, relaxed eligibility) versus standard bank loans.
Being targeted at women and especially those from weaker economic backgrounds, it helps address gender and economic inclusion in entrepreneurship.
Important Considerations for Business Owners
Even though benefits (subsidy, low interest) are attractive, you must ensure your business plan is viable: market demand, cost structure, repayment ability.
The scheme is state-specific (Karnataka) and terms may change by region, so check local district/branch implementing agency.
The subsidy is not 100% of your cost; you still need to invest or contribute balance and ensure funds are used for the approved business activity.
Make sure you meet deadlines: business commencement, loan utilisation, documentation — delays may affect eligibility for full benefit.
Keep documentation of business operations, as subsidy/support may be contingent upon performance and monitoring.