Udyogini Scheme for Women Entrepreneurs
“Aatmanirbhar Bharat” is a dream that the Government of India is striving hard to implement and achieve. Under this meaningful initiative, the government desires to empower women and make them Aatmanirbhar – independent.
The Udyogini scheme not only aims to support women to become financially independent but also provide for their families in rural or backward areas of the nation. The business loans can be availed either for the initial capital requirements or for 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 the initial stage of their business.
Let us look at some of the basic features of the scheme:
|What is the maximum amount that one can receive as a business loan?||The maximum amount is up to ₹3 lakh|
|What is the general Interest rate?||It is quite competitive (highly subsidized or free loans are available for special categories).|
|What should be the annual family income of the applicant?||₹1.5 lakh or less|
|What is the age limit criteria?||The minimum age is 18 years, and the maximum age is 55 years|
|What is the income limit for widows or disabled women?||No income limit.|
|Is there any collateral required to avail the business loan?||Not required|
|What is the processing fee?||Nil|
Understanding how the scheme works:
Harnessing women’s entrepreneurship potential by providing financial assistance by way of customized loans to women entrepreneurs of underdeveloped areas is the sole objective of the scheme. The recognized scheme follows the steps mentioned below:
- Necessary business skills and customized business services are provided to women from targeted areas.
- Once the funding is provided, the focus is moved to the increasing volume of production.
- There is a steady increase in income from operations.
- Ensures that women participate in decision-making.
Features of the Udyogini Scheme:
The women under special categories are eligible to get interest-free business loans under this scheme. The special categories include women belonging to the following groups – widows, destitute, and disabled. The business loan interest rates are also kept at a minimal rate, which helps build interest savings. The entrepreneurs can get a fair idea about the EMI offered by several institutions by checking the business loan EMI calculator and net payment to be made.
High-value loan amount
The maximum business loan that can be availed under this scheme is INR 3 lakhs. However, one has to fall under the eligibility criteria to be eligible for the same.
• 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 of a total of 88 small-scale industries is offered as a benefit under this scheme. Some of the industries that enjoy business loan eligibility are the following –
• Ragi powder shop
• Matchbox manufacturing
• Books and notebooks binding
• Flower shops
• Flour mills
• Silk weaving
• Edible oil trade
• Readymade garment
Training for skill development
One of the core areas that this scheme aims to develop is the skills for business. It helps to build the knowledge base, aptitude, right attitude required to execute the business plan. The training includes the basics of running the business, such as:
- Business planning
- Feasibility of the business
- Up to 30% loan subsidy
The government offers a 30% subsidy on business loans to women entrepreneurs to make loan payments affordable and ease the financial burden. This will not only help the entrepreneurs start their business but also sustain it.
Transparency in applicant evaluation
Every application is evaluated by fair means. Complete transparency is adopted while scrutinizing an application before extending a business loan.
Here is the list of documents required to apply for Udyogini Scheme:
- 2 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 any small-scale business fits into the criteria, then they must register under this useful scheme.