Udyogini Scheme 2026 - Karnataka Women Loan Subsidy, Eligibility and How to Apply

Karnataka government is running Udyogini Scheme in 2026 to help women get subsidised loans for starting their own small businesses. Women aged 18 to 55 years can get a loan up to ₹3 lakh with subsidy support of 30% for general category and 50% for SC/ST women, through Karnataka State Women's Development Corporation (KSWDC).

Under this scheme, women in Karnataka can get funding for around 88 small-scale trade and service activities like pickle making, papad making, tailoring, saree embroidery, book binding and many more. Loan interest rate is around 6% and repayment can be done within 36 months, along with a 6 month moratorium period.

Udyogini Scheme 2026 Details

Udyogini Scheme is a Karnataka state scheme run by Karnataka State Women's Development Corporation. It was first started in 1997-98 and later updated in 2004-05 to give more support to women who want to become self-employed. Loans are given through commercial banks, district cooperative banks, regional rural banks and Karnataka State Finance Corporation (KSFC).

Before this scheme came, many women had to borrow from private lenders at very high interest rates. Now, eligible women can get money through a proper bank channel with subsidy on top. Selected women also get 3 to 6 days of Entrepreneurship Development Programme (EDP) training before the loan is released. This training helps them run their business well from day one.

Udyogini Scheme 2026 Highlights

Benefits of Udyogini Scheme

Main benefit is the subsidy on the loan taken for starting a small business. Subsidy amount depends on which category the woman applicant belongs to and the total project cost. Loan tenure is 36 months with a moratorium of 6 months, which means the borrower does not need to start repayment for the first 6 months.

For SC/ST women, unit cost can be between ₹1,00,000 to ₹3,00,000 and subsidy is 50% of the loan amount. For general and special category women, subsidy is 30% and the maximum subsidy amount is capped at ₹90,000.

Along with money support, selected women get EDP training which lasts 3 to 6 days. This training covers basics of running a business, managing money and marketing the product or service in the local market.

Udyogini Scheme Eligibility

Only women who match some basic conditions can apply for Udyogini Scheme in Karnataka. Age, income and residency are the main points that get checked before the application is accepted.

• Gender: Only women can apply for this scheme, men are not covered under Udyogini Scheme.
• Age: Applicant should be between 18 and 55 years of age at the time of applying for the loan.
• Residency: Applicant must be a permanent resident of Karnataka state to get the scheme benefit.
• Income: Family income should be below ₹1.5 lakh per year for general category and ₹2 lakh for SC/ST women. Widows and women with disabilities are exempt from this income limit.
• Loan History: Applicant should have a clean credit history and no pending loan defaults with any bank.

Priority Groups Under Udyogini Scheme

Some groups get priority in getting the scheme benefit over others. Preference is given to poor women, widows, destitute women and those with physical disabilities. Women who have completed vocational training from KSWDC or any other government department also get priority. Also, 10% of the total target is kept aside for women who are part of Stree Shakti groups or World Bank-supported Swashakti groups.

Documents Required for Udyogini Scheme

Before starting the application, keep all the required documents ready. Missing papers can slow down the whole process at the bank or CDPO office.

• Three recent passport-size photographs of the applicant.
• Detailed Project Report (DPR) explaining the business plan and expected income.
• Address and ID proof like Ration Card, Aadhaar Card or Voter ID Card.
• Annual family income certificate issued by the local authority.
• Caste certificate, only if applying under SC/ST category.
• Certificate showing prior training or work experience in the chosen activity.
• Firm quotations for any machinery or equipment planned for purchase.

How to Apply for Udyogini Scheme Online and Offline

Application for Udyogini Scheme is mostly done in offline mode by visiting the nearest bank or CDPO office. Full step by step process to apply is given below.

STEP 1 - Visit the nearest bank, KSFC office or the office of the Deputy Director or CDPO in your district. Application form can also be downloaded from the official KSWDC website at kswdc.karnataka.gov.in.

STEP 2 - Fill the application form with correct personal details like name, age, address, category and business activity for which loan is needed. Attach all the required documents along with the form.

STEP 3 - Submit the completed form and documents at the local bank or KSFC branch. Bank staff will check the project proposal and forward it further for approval.

STEP 4 - CDPO will do a spot verification at the applicant's address and the proposed business location. After this check, the file is sent to the Selection Committee for final approval.

STEP 5 - Once the Selection Committee approves the project, the bank sanctions the loan. Subsidy amount is released by KSWDC to the bank, and the loan amount is transferred to the applicant's account or paid directly to the equipment supplier.

Business Activities Covered Under Udyogini Scheme

Around 88 small-scale trade and service activities are covered under this Karnataka scheme. Some common ones include pickle making, papad making, jam and jelly units, notebook binding, chalk and crayon making, saree embroidery, cloth dyeing, woolen craft, tailoring, beauty parlour, tiffin service and small food processing units. Applicant can pick any activity based on her skill and market demand in her area.

Contact and Helpline

For any query related to Udyogini Scheme, applicants can contact the Karnataka State Women's Development Corporation office in Bangalore or the local KSWDC district office. Contact numbers, email and address details are given on the official website at kswdc.karnataka.gov.in.

Related Schemes for Women in Karnataka

Karnataka has more schemes for women and youth apart from Udyogini. Read about Karnataka Stree Samarthya Yojana for women empowerment and Karnataka CM Self Employment Scheme (CMEGP) for self-employment support. To see all women focused schemes across India, check the List of Women Empowerment Schemes.

References

• Read the full official guidelines
• View budgetary allocation details
• Review the impact report on employment

FAQ's

What is Udyogini Scheme in Karnataka?

Udyogini Scheme is a Karnataka government loan scheme that gives subsidised business loans to women who want to start small businesses in trade and service sectors. It is run by Karnataka State Women's Development Corporation.

How much loan can women get under Udyogini Scheme?

Women can get a loan up to ₹3 lakh under this scheme. Interest rate is around 6% and repayment tenure is 36 months, along with a 6 month moratorium period.

What is the subsidy amount under Udyogini Scheme?

General and special category women get 30% subsidy with a cap of ₹90,000. SC/ST women get 50% subsidy on the loan amount taken for their business.

Who can apply for Udyogini Scheme in Karnataka?

Any woman between 18 and 55 years who is a permanent resident of Karnataka can apply. Family income should be less than ₹1.5 lakh for general and ₹2 lakh for SC/ST. Widows and disabled women are exempt from the income limit.

Which is the official website of Udyogini Scheme?

Official website of Karnataka State Women's Development Corporation is kswdc.karnataka.gov.in. Applicants can download the form and check other scheme details from this portal.

Can women from outside Karnataka apply for Udyogini Scheme?

No, only permanent residents of Karnataka can apply for this state scheme. Women from other states can check similar loan schemes offered by their own state governments.