“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 aims to support women to become financially independent and provide for their families in rural or backward areas of the nation. The 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 the initial stage of their business.

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

Understanding how the scheme works:

Harnessing women’s entrepreneurship potential by providing financial assistance through customized loans to women entrepreneurs of 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 belonging to the following groups – widows, needy, 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 available 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 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

• 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 that this scheme aims to develop is the skills for business. It helps 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
• Pricing
• Costing
• 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 help the entrepreneurs start their business and 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 the 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, they must register under this helpful scheme.