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Udyogini Scheme: How Women Entrepreneurs Can Benefit

By Tata Capital
05 January 2026
9 mins read
2304

A study conducted by NITI Aayog revealed that India has 63 million micro, small, and medium enterprises (MSMEs). These MSMEs have a 30% contribution to the Indian GDP. However, out of these 63 million, only 20% of enterprises are owned by women.

The study also estimates that by boosting women-owned businesses, India could generate more than 150 million jobs. To tap into this potential, the Government of India launched the Udyogini Scheme to specifically empower women entrepreneurs across the country.

This article provides an in-depth view of the scheme and why it can potentially transform how women conduct their businesses in India.

What is Udyogini Scheme? Yojana Objective & Overview

The Udyogini scheme was launched by the Government of India to promote entrepreneurship and economic empowerment of women in India. The scheme aims to assist women from all sections of society to gain self-reliance by setting up micro-enterprises and small businesses.

Under the scheme, women entrepreneurs are provided interest-free loans to help establish micro-enterprises, mainly in the trade and services sectors. The scheme intends to tap into the entrepreneurial potential of women, especially those based in rural and underdeveloped areas of the country.

The following are the key objectives of the PM Udyogini Yojana scheme:

Encourage women to avail of loans from financial institutions for their enterprises.

Make financial assistance easily accessible to women from marginalised sections like SC, ST and special categories at lower interest rates.

Provide interest-free loans to eligible women beneficiaries without any discrimination.

4. Ensure entrepreneurship and skill development of women through training programs on the basics of business.

Udyogini Yojana Scheme Details (Loan Amount, Collateral, Eligibility)

Here are details of the Udyogini Scheme:

Category	Scheme features
Interest rate	Competitive, subsidised, or waived for specific qualifying cases
Loan amount	Available for a maximum amount of Rs. 3 lakhs
Annual family income	Annual income of Rs. 1.5 lakh or less
Collateral	Collateral is not required for obtaining loans under this scheme.
Processing fee	No processing fee is charged for loan applications under this scheme.

Key Features of Udyogini Loan Scheme for Women

Here are the features of the Udyogini Yojana scheme for women entrepreneurs-

The loan is available to women entrepreneurs in 88 small-scale industries, including libraries, canteen, catering, security services, and papad making.
Eligible women can apply for a loan of up to Rs. 3 lakhs within the scheme.
The government offers a 30% subsidy on loans.
Eligible businesses within the agricultural sector can also avail of interest-free loans.
The scheme also provides training to women for skill development.

Benefits of Udyogini Yojana: Subsidy, Training & Empowerment

By providing easy financing, capacity building and enterprise support, the Udyogini scheme empowers women to start and run businesses successfully, thereby promoting livelihoods and financial independence.

The Udyogini scheme offers several benefits to support women entrepreneurs in India:

Udyogini Scheme interest rate: Women entrepreneurs belonging to special categories like widows, destitute and differently-abled can avail of interest-free loans under the scheme for setting up micro-enterprises and small businesses.
High-value loans: Eligible women entrepreneurs can get loans up to Rs 3 lakhs if they meet the required eligibility criteria. The funding provides sufficient capital to start enterprises. This also promotes inclusive growth by supporting vulnerable sections of women entrepreneurs.
Covers 88 industries: The scheme offers financial assistance for establishing 88 types of small-scale industries. Women in the agriculture sector can also avail interest-free loans.
Skills training: Entrepreneurship development training is provided, covering business basics like planning, pricing, costing, feasibility assessment, etc. This equips women with enterprise management skills.
Subsidy on loans: To ease repayment burdens, the scheme offers up to 30% subsidy on loans sanctioned to women entrepreneurs.

Eligibility Criteria for Udyogini Loan Scheme

The Udyogini scheme offers business loans exclusively to women entrepreneurs to help them start or grow their enterprises. The key eligibility criteria to avail loans are:

Applicants must be women entrepreneurs who want to start or expand a business venture. The scheme is aimed at supporting women’s entrepreneurship.
They must have a good credit history with no defaults on past loans from any financial institution. This ensures their creditworthiness.
Women entrepreneurs should have the capability to repay the loan based on a stable income source.

Also,read: Why Should You Keep Women as a Co-owner to Avail PMAY Benefits

Documents required to avail of loans under the Udyogini Scheme

Women entrepreneurs need to submit certain documents when applying for loans under the Udyogini scheme. The key documents required are:

Filled application form along with passport-sized photographs
Identity proof like an Aadhaar card, birth certificate, etc.
Income proof and address proof
Below Poverty Line (BPL) card and ration card, if applicable
Caste certificate for applicants belonging to reserved categories
Copy of passbook with account details, IFSC code and MICR code
Any other documents specified by the lender providing the loan

Which Businesses & Sectors are Covered Under Udyogini Loan Scheme?

Here’s a concise overview of the businesses and sectors supported under the Udyogini loan scheme based on official information and scheme lists:

Agriculture and allied activities: Includes farming, dairy, poultry and related rural ventures supporting women in agrarian sectors.

Retail and trade enterprises: Covers small shops such as stationery, grocery or other retail services that help women establish local businesses.

Manufacturing and production units: Encompasses activities like incense stick making, handicrafts, food processing units and textile-related crafts.

Service-based businesses: Supports salons, tailoring units, repair centres and other personal or small service enterprises.

Cottage and artisan work: Includes handcrafted products and artisanal work that promote traditional skills and local crafts.

How to Apply for Udyogini Scheme: Step-by-Step Online/Offline Process

Here are the steps to follow when applying for a loan under the Udyogini scheme:

Obtain the application form from a lender who provides loans under this scheme. The Udyogini online application form can be downloaded by visiting the website of a partner financial institution.
Fill the application form accurately with all the required details. Ensure no information is missing.
Attach copies of the necessary documents mentioned in the application form, like identity proof, income proof, etc.
Submit the completed loan application form along with documents to the lender. Alternatively, to apply for a Udyogini loan, apply online on the lender’s website.
The lender will verify the application and approve loans for eligible applicants under the scheme. Once the loan is approved, the amount will be disbursed to the borrower’s account.

Also,read: All You Need to Know about Cent Kalyani Scheme

Udyogini Loan Scheme Interest Rate & Subsidy

The Udyogini scheme offers interest-free loans to women entrepreneurs with small businesses.

Under the scheme, disabled women, Dalit women and widows qualify for interest-free loans.
Women from other categories can also avail of loans under the Udyogini scheme but at a 10% to 12% interest rate on the loan amount.
Eligible applicants can also avail a 30% subsidy on the loan based on their family’s annual income.

Moreover, the government also regulates the interest rate depending on where you’re applying from.

Also,read: Top 10 Government Schemes Empowering Female Entrepreneurs

Entrepreneurship Development Training under Udyogini Yojana

Entrepreneurship development training under the Udyogini loan scheme focuses on building practical business skills before or alongside financial support from a Lender. Women entrepreneurs are guided on business planning, cost management, pricing strategies, basic accounting and market understanding to improve decision making. This structured support under the Udyogini Yojana scheme helps beneficiaries launch sustainable enterprises with stronger confidence and long term viability.

Udyogini Scheme vs Other Women Business Loan Schemes in India

Mudra Yojana: Compared to Mudra, the Udyogini scheme details highlight lower loan limits with a stronger focus on women from economically weaker sections, while Mudra supports a broader MSME base.

Stand Up India Scheme: Stand Up India offers higher value loans through a Lender but involves stricter eligibility, whereas Udyogini prioritises easy access for micro enterprises.

Annapurna Scheme: Annapurna is restricted to food businesses, while Udyogini supports diverse retail and service activities.

Mahila Coir Yojana: Mahila Coir Yojana targets a single industry, unlike Udyogini’s multi sector approach.

Dena Shakti Scheme: Dena Shakti offers interest benefits, while Udyogini focuses on grassroots inclusion.

How to Track Status of Udyogini Yojana Application Online

Step 1: Visit the application portal
Log in to the official portal or lender website where your Udyogini Yojana scheme application was submitted, using your registered details.

Step 2: Enter reference details
Provide the application or acknowledgement number to access real time status updates.

Step 3: Check verification progress
Review whether documents are under review, approved or pending with the Lender.

Step 4: Use offline support if needed
Contact the lender or local office to track your Udyogini loan scheme application if online tracking is unavailable.

Can I use Udyogini loan scheme for existing business expansion?

Yes, you can use the Udyogini loan scheme to expand an existing enterprise provided you meet eligibility criteria and the Lender accepts your business expansion plan, as the programme supports growth of women-led ventures in retail, services or production sectors.

Is collateral required for Udyogini loan scheme?

No, you do not need to provide any collateral to avail loans under the Udyogini scheme details, as it offers collateral-free finance for eligible women entrepreneurs with a Lender assessing your business plan and credit profile.

Conclusion

The Udyogini Scheme has opened up new possibilities for women entrepreneurs in India to gain financial and skill support for their entrepreneurial aspirations. By providing easy access to formal credit, training and incubation support, the scheme aims to harness the entrepreneurial capacity of Indian women.

If you own a small business, you can get the right financial support of up to Rs 90 lakhs with Tata Capital. Our business loans for MSMEs feature a tenure of 12 months to 60 months and a competitive interest rate.

Moreover, you can benefit from our customisable loan products to suit your exact funding needs. Our collateral-free MSME loans are ideal for fulfilling your working capital requirements. Lastly, we require minimal documents for a business loan and make the entire process hassle-free. Tata Capital’s business loans for women-owned enterprises can help you take your business to new heights.

For more details, visit the Tata Capital website or download the Tata Capital App today!

The details mentioned in this blog may change from time to time and from vendor to vendor or government policies.

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FAQs

Which bank is using the Udyogini scheme?

You can apply for a loan under the Udyogini scheme from various commercial banks, regional rural banks (RRBs), district cooperative banks, private banks, and non-banking financial institutions.

Can I apply for the Udyogini scheme for homestay?

The benefits of the Udyogini scheme are only available to women entrepreneurs looking to set up a business or enterprise. So you cannot apply for the scheme for a homestay.

What is the purpose of the Udyogini Scheme?

The Udyogini Scheme aims to empower women entrepreneurs and encourage the Small Scale Industries (SSI) sector by providing financial assistance and creating employment opportunities.

How much loan I can get under the Udyogini scheme?

The maximum loan amount eligible women entrepreneurs can apply for under this scheme is Rs. 3 lakhs.

Who introduced the Udyogini scheme?

The Ministry of Women and Child Development, Government of India, initiated the Udyogini Scheme to promote and support women entrepreneurship in India.

How much loan can you get under the Udyogini scheme?

Under the Udyogini scheme, you can avail of a maximum loan amount of Rs. 3 lakhs.

What is the age eligibility to apply for the Udyogini scheme?

Women entrepreneurs between 18 and 55 years old are eligible for a loan under the Udyogini scheme.

What is the Udyogini Yojana scheme and who is eligible?

The Udyogini Yojana scheme supports women entrepreneurs from low income groups planning small businesses with assistance from a Lender.

How do I apply for Udyogini Scheme online or offline?

Applicants can apply offline through authorised lenders or state agencies, as online application availability depends on location.

What documents are needed for Udyogini loan application?

Common requirements include identity proof, address proof, income certificate, business details and photographs as per udyogini scheme details.

Is Udyogini Scheme only for new women entrepreneurs?

No, the scheme supports both new and existing women entrepreneurs seeking business setup or expansion funding.

How much loan/subsidy can I get under Udyogini Yojana?

Eligible women can receive financial assistance up to prescribed limits, with subsidies available for select social categories.

What sectors/businesses are covered under Udyogini Scheme?

The scheme covers retail, services, manufacturing, agriculture allied activities and small trade based enterprises.

Can widows and disabled women apply for Udyogini Loan Scheme?

Yes, widows and differently abled women are eligible and often receive preference under the Udyogini loan scheme.

How can I check my Udyogini loan application status online?

Applicants can track status through the Lender portal or by contacting the local implementing office.

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