Udyogini Scheme 2026, the ₹3 lakh women’s loan, subsidy, and how to apply

What is the Udyogini Scheme?

The Udyogini Scheme is a women-focused self-employment loan, started by the Karnataka State Women’s Development Corporation (KSWDC) and widely used as a model for supporting women into small business. It gives women a loan of up to ₹3 lakh to set up or run a small enterprise, and, crucially, a chunk of that comes back as a subsidy you do not repay.

It is aimed at exactly the kind of business most women actually start: retail, small manufacturing, handicrafts, services and agriculture-linked work. The scheme lists 88 eligible activities, so whether you want to run a tailoring unit, a small shop, a food stall or a beauty service, there is a good chance it fits.

How much you get: loan and subsidy

The subsidy is the heart of the scheme. On a ₹3 lakh loan, a 30% subsidy is ₹90,000 you never pay back, and for SC/ST women a 50% subsidy is ₹1.5 lakh. The rest is a normal loan through a participating bank, typically repaid over about 36 months including a 6-month moratorium, so you get a short breather before instalments begin.

Who is eligible for the Udyogini Scheme

• You are a woman, generally between 18 and 55 years of age.
• Your family income is within the scheme’s limit (widowed, destitute or differently-abled women are often exempted from the income ceiling).
• You have a clean credit history, with no default on earlier loans.
• Your business is one of the scheme’s eligible small-scale activities.

Because the scheme is run through state women’s development corporations and participating banks, the exact income limit and the list of banks vary by state. Confirm the current figures locally before you count on them, our guide to state-wise schemes for women entrepreneurs is a useful companion here.

How to apply for the Udyogini Scheme

Step 1, Pick your business and prepare a plan

Choose an activity from the eligible list and write a simple project plan: what you will do, what it costs, and how you will repay. Keep quotations for any equipment.

Step 2, Approach the right agency or bank

Apply through your state Women’s Development Corporation, a participating bank branch, or an authorised NGO partner. Ask for the Udyogini Scheme by name.

Step 3, Submit documents and complete EDP training

Submit your KYC, income and business documents. The scheme includes Entrepreneurship Development Programme (EDP) training, which is genuinely useful and strengthens your application.

Step 4, Sanction and subsidy

The bank appraises and sanctions the loan, and the subsidy portion is adjusted as per the scheme rules. Then you start.

Documents you will need

• Aadhaar and other ID/address proof
• Passport-size photographs
• Income certificate (where required)
• Caste certificate, if claiming the SC/ST subsidy
• A simple project report or business plan

Is Udyogini right for you?

Udyogini suits a small first venture where a ₹3 lakh loan with a real subsidy is enough to get going, retail, a handicraft or tailoring unit, a small service. If you need more, compare it with the other options in our guide to government schemes for women entrepreneurs: a PMEGP loan funds larger units with its own subsidy, and Stand-Up India goes from ₹10 lakh upward.

Still deciding what to build? Our capital-sorted business ideas for women in India and the handmade business ideas pillar are full of activities Udyogini covers. The Funding Match tool can shortlist the schemes you qualify for in about a minute.