Karnataka Kayaka Yojana - 0% Interest Loan Scheme for Self Help Groups (SHGs)

Karnataka government announced Kayaka Yojana in the state budget for 2018-19 to give interest free loans to women self help groups (SHGs) in the state. Under this scheme, SHGs can get loans up to Rs 10 lakh from cooperative banks, with the first Rs 5 lakh at 0% interest and the remaining amount at 4% interest.

Note: As of 2026, there is no official confirmation that the online application portal for Kayaka Yojana has been launched. Details below are based on the original scheme announcement. Self help groups interested in this loan should check with their local Department of Cooperation office or the official website sahakara.kar.gov.in for the latest status before applying.

Karnataka Kayaka Yojana - Loan Scheme for Self Help Groups

Kayaka Yojana is a loan scheme to encourage entrepreneurship among members of self help groups. Scheme will give loans up to Rs 10 lakh to SHGs to increase business activities among members. It was designed on the long pending demand of self help groups for interest free loans to boost their work. SHG loans up to Rs 5 lakh under Kayaka Yojana will be given at 0% interest, while loans between Rs 5 lakh and Rs 10 lakh will carry 4% interest.

State government plans to buy products made by women associations under this loan scheme. For this, government will give required training to women associations to make different products and sell them under the scheme. Karnataka government will also help with marketing of the prepared products.

Karnataka Kayaka Yojana Online Application Form

Under this loan scheme, state government planned to give loans to 3,000 SHGs, with each SHG getting Rs 10 lakh. Out of this amount, Rs 5 lakh is interest free while the rest carries 4% interest. Eligible applicants will be able to fill Kayaka Yojana online application form to get interest free loans once the portal is active. Official date to start online applications was never confirmed publicly.

This loan scheme of Karnataka government aims at growth of financial activity and trade in the state. Kayaka Yojana plans to give money support to self help groups. SHGs will use the funds to give training to people who want to start something on their own.

How to Apply for Kayaka Yojana

Karnataka government is yet to share clear details on the application form filling process and enrollment steps for this scheme. Once shared, interested self help groups will be able to get this money support of up to Rs 10 lakh. Proper training is required for overall growth of small and marginal businesses. Support to SHGs will make sure these people get the guidance they need.

Eligibility for Kayaka Yojana

Scheme was announced in the state budget, but detailed eligibility rules were never officially released in full. Based on available information, only self help groups located and working within Karnataka can apply for this loan. Groups led by women, especially those with monthly family income within set limits, are expected to get priority.

Key Features of Kayaka Yojana

Main features and highlights of Kayaka Yojana in Karnataka are as follows:

• Development of SHGs - Kayaka Yojana aims at growth of SHGs working in the state. SHGs will use money to increase skill development and business activity among members.
• Easy loan access - Once active, SHGs can get loans from banks easily and grow their activities for skill development among people.
• Loan amount - State government plans to give loans between Rs 1 lakh and Rs 10 lakh to SHGs.
• Interest on loan - For loans below Rs 5 lakh, there is 0% interest under this scheme. For loan amount between Rs 5 lakh and Rs 10 lakh, interest is charged at 4%.

First phase of the scheme was planned for 5 urban areas, covering up to 3,000 SHGs.

For more details, check the official website at sahakara.kar.gov.in