Karnataka Udyogini Scheme 2026: Eligibility, Loan Amount, Subsidy, Benefits and Application Process

Karnataka’s the Udyogini Scheme is a pre-eminent initiative of the State Government by promoting the women entrepreneurship through the means of self-employment, along with financial independence. The scheme has been introduced in Karnataka by the Karnataka State Women Development Corporation (KSWDC) where collateral-free loans (up to ₹3 lakh) are being granted to the eligible women in running or starting their own businesses along with getting the financial support from the State Government by way of subsidy.

Be it industrial units or retail outlet or tailoring business or food processing unit or services; the Udyogini Scheme will enable eligible entrepreneurs to access affordable credit without any requirement for collateralization of assets.

What is the Karnataka Udyogini Scheme?

The Karnataka Udyogini scheme was launched in 2015-16 to promote self-employment among women and promote entrepreneurship in the state.

It aims at reducing the dependency of women on informal money lenders by providing financial assistance in the form of business loans through banks at subsidized interest rates.

The beneficiaries will also receive training through the entrepreneurship development program financing.

Purpose of Karnataka Udyogini Scheme

The Karnataka Udyogini Scheme aims at enhancing women entrepreneurship and ensuring better social and economic conditions for women in Karnataka.

Furthermore, the scheme has taken initiative in instilling self-employment, providing assistance to small and medium enterprises, creating a sustainable source of income, simplifying access to formal financing, and reducing reliance on expensive informal loans.

Business Loan Amount Available with the Karnataka Udyogini initiative

Women entrepreneurs can obtain a loan for their business without any security for the loan. They can borrow an amount of up to ₹3,00,000 to set up or grow their business.

Women can avail of this loan from banks at interest rates, which encourages them to start their own business.

Subsidy on the loan by the government

One of the main benefits of the initiative is the subsidy given by the government of Karnataka.

Amount of subsidy Category Wise

• SC/ST: 50% of the loan amount
• General: 30% of the loan amount
• Other: 30% of the loan amount

The subsidy amount is paid to the lender bank which decreases the repayment burden on the beneficiary.

Main Advantages of the Karnataka Udyogini Scheme

The scheme is highly advantageous for women entrepreneurs.

Women entrepreneurs can receive funds without providing any collateral, thus making entrepreneurship much easier.

The women may also be able to get a subsidy which will lower their borrowing costs and thus lower their interest payments.

Selected beneficiaries also undergo Entrepreneurship Development Programme (EDP) training for about 6 days, which enables them to learn business management skills before they get their funds.

To sum up, the Udyogini Scheme encourages financial inclusion, self-employment, and sustainable income.

Requirements to Participate in the Scheme

The following eligibility requirements must be fulfilled in order to participate in the scheme.

• Permanent resident of Karnataka.
• Age should be between 18 years and 55 years.
• The cost of the proposed project to be between one lakh rupees and three lakh rupees.

Although income limits apply to most of the applicants as follows,

• SC/ST candidates must have family income not exceeding two lakh rupees.
• Other categories of applicants must have family income not exceeding one lakh fifty Thousand rupees.

However, widows and disabled women would be exempted from any income limit.

Qualifications for Business Activities

The government of Karnataka has allowed several small-scale initiatives to be performed under this scheme.

The various business activities include various operations such as manufacturing, food processing, tailoring, handicrafts, beauty salons, retail shops, dairy farming, agricultural-related activities, service organizations, and other micro-business operations as mentioned by the government.

Applicants must make sure that their proposed business operates in accordance with the prescribed eligible activities of the implementing organization.

Required Documents

When applying, you must submit these essential documents such as,

• Aadhaar card
• Proof of age in the form of the birth certificate
• Proof of residence
• Income certificate
• BPL card and ration card (where relevant)
• Caste certificate (if applicable)
• Information about bank account
• Phone number
• 3 passport-sized photos
• Certificate of training or experience in relation to the proposed business
• Detailed project report (DPR)
• Estimates for the purchase of equipment or any other necessary business expenses

Any additional documents required by the bank or financial institution

How To Apply

Women who qualify can apply for the assistance by obtaining the application form at the District Office of Karnataka State Women Development Corporation (KSWDC).

After collecting the application form, candidates should fill in all details in the application form and attach supporting documents.

The submitted application is verified by concerned authorities. The eligible applicants are shortlisted, and the final list is sent to the bank for loan sanction.

The applicants are updated about their application status through SMS. After the approval, the loan amount gets credited to the applicant’s account, and the subsidy goes to the bank account.

Candidates must have to complete the mandatory 3-6 days of Entrepreneurship Development Programme (EDP) training before the the actual loan disbursement.