“Aatmanirbhar Bharat” is a dream that the Government of India strives to implement and achieve. Under this meaningful initiative, the government desires to empower women and make them Aatmanirbhar–independent.

The Udyogini scheme aims to support women in the nation’s rural or backward areas in becoming financially independent and providing for their families. Business loans can be available for the initial capital requirements or further business expansion.

Under the watchful eyes of the Government of India, the Women Development Corporation launched the Udyogini scheme for budding women entrepreneurs. Under this scheme, Indian women entrepreneurs can attain financial assistance from financial institutions by applying for business loans at their initial business stage.

Let us look at some of the basic features of the scheme:

Understanding how the scheme works:

Harnessing women’s readership potential by providing financial assistance through customized loans to women entrepreneurs in underdeveloped areas is the sole objective of the scheme. The recognized plot follows the steps mentioned below:

• Women from targeted areas provide necessary business skills and customized business services.
• Once the funding is provided, the focus is moved to the increasing production volume.
• There is a steady increase in income from operations.
• Ensures that women participate in decision-making.

Features of the Udyogini Scheme:

• Interest-free loans

The women under special categories can get interest-free business loans under this scheme. The particular types include women from the following groups – widows, needy, and disabled. The business loan interest rates are also kept at a minimal rate, which helps build interest savings. Entrepreneurs can get a fair idea of the EMI offered by several institutions by checking the business loan EMI calculator and the net payment to be made.

• High-value loan amount

The maximum business loan available under this scheme is INR 3 lakhs. However, one must meet the eligibility criteria to be eligible for it.

• 88 small-scale Industries are covered under the scheme

This scheme helps to provide interest-free loans to entrepreneurs from the agriculture sector. Business loan eligibility for 88 small-scale industries is offered as a benefit under this scheme. Some of the sectors that enjoy business loan eligibility are the following –

• Ragi powder shop

• Library

• Matchbox manufacturing

• Books and notebooks binding

• Flower shops

• Flour mills

• Silk weaving

• Fuelwood

• Edible oil trade

• Readymade garment

• Training for skill development

One of the core areas this scheme aims to develop is business skills. It helps build the knowledge base, aptitude, and right attitude required to execute the business plan. The training includes the basics of running the business, such as:

• Business planning
• Pricing
• Costing
• Feasibility of the business
• Up to 30% loan subsidy

The government offers women entrepreneurs a 30% subsidy on business loans to make loan payments affordable and ease the financial burden. This will help the entrepreneurs start their business and sustain it.

• Transparency in applicant evaluation

Every application is evaluated fairly. Complete transparency is adopted when scrutinizing an application before extending a business loan.

Here is the list of documents required to apply for the Udyogini Scheme:

• Two passport-size photographs
• Copy of Aadhar card
• Copy of birth certificate
• BPL card photocopy
• Proof – Copy of Caste Certificate (for SC/ST)
• Income proof
• Photocopy of bank passbook

This scheme is quite helpful and can act as a catalyst to boost women’s entrepreneurship in rural areas. If a small-scale business meets the criteria, it must register under this helpful scheme.