Women entrepreneurs in India are emerging as a strong economic force, especially in semi-urban and rural regions. Over the past five years, the number of women opting for business loans has grown by nearly 22% annually. Supporting this rising wave of women-led enterprises, the government’s Udyogini Yojana has become one of the most impactful schemes aimed at empowering women through financial independence.
Under this initiative, eligible women can avail collateral-free loans ranging from ₹1 lakh to ₹3 lakh, making it easier to start small businesses such as tailoring units, beauty parlours, catering services, handicraft ventures, and more. Initially launched in Karnataka, the scheme has now extended across India, offering equal opportunities to women from diverse backgrounds.
The scheme is designed to uplift women from financially weaker sections and help them begin self-employment ventures with minimal hurdles. The eligibility criteria are simple:
Age Limit: Women aged 18 to 55 years
Family Income: Annual household income must be below ₹1.5 lakh
Special Categories: Widows and women with disabilities have no income limit
Subsidy:
SC/ST women receive up to 50% subsidy
Women from other categories may receive up to 30% subsidy
These subsidies significantly reduce the repayment burden, making entrepreneurship more accessible. The scheme also covers 88 categories of small-scale businesses, including incense manufacturing, bakery units, gyms, dairy activities, stitching centres, and home-based manufacturing. Women with training certificates, such as EDP (Entrepreneurship Development Program), often receive faster approval and better support.
One of the biggest advantages of Udyogini Yojana is that it requires no collateral or security, making it ideal for first-time entrepreneurs. Other key benefits include:
No processing fee
Low interest rate, depending on the lending institution
Subsidy directly reduces repayment amount
Support for both new and existing micro-businesses
Banks and financial institutions evaluate the applicant’s proposal, and once the loan is sanctioned, the amount can be used to set up the business or expand an existing one.
Women who wish to apply for the scheme need to keep the following documents ready:
Aadhaar Card
PAN Card
Income certificate
Caste certificate (if applicable)
Passport-size photographs
Business project report
Applicants can apply either through the nearest bank branch or via the official government portal myscheme.gov.in, which simplifies the process and helps track updates easily.
The Udyogini Yojana is not just a loan scheme—it is a catalyst for social and economic transformation. Thousands of women have used this financial assistance to build small businesses, generate stable income, and even offer employment to others in their community.
For instance, many women who started their journey with a single sewing machine loan now run tailoring units that employ several other women. Such success stories highlight how access to small loans can create long-lasting impact—strengthening households, building confidence, and encouraging more women to step into entrepreneurship.
Promotes women’s financial independence
Encourages rural entrepreneurship
Reduces dependency on high-interest informal loans
Creates employment opportunities at the grassroots level
Aligns with India’s vision of inclusive economic growth
If you are a woman dreaming of starting your own business, Udyogini Yojana is an excellent opportunity to begin your entrepreneurial journey with minimal financial pressure. Visit your nearest bank branch or apply online to explore the benefits and take your first step toward financial independence.
