Introduction
Women in India are always big supporters of their families and society. However, most of them have been facing difficulties in establishing and running their individual businesses. The Indian government, and some state governments, had thus started various support schemes to facilitate financial independence among women.
Some of the key initiatives include Udyogini Yojana. Under this scheme, business loans for women, grants, and other financial aid are provided that help women entrepreneurs start or expand their businesses.
With this article, we will take you through the details of the Udyogini Yojana, its benefits, eligibility criteria, and also the online application process.
Also read: Bring Home your Dream Car Easily with a ICICI Bank Car Loan
Brief on Udyogini Yojana for Women Entrepreneurs – Scheme Details, Online Application
What is Udyogini Yojana?
The Udyogini Yojana is a part of the government’s efforts aimed at enabling Indian women entrepreneurs by providing some financial aid. Self-reliance and sustainability are to be brought about through this help to women so they can stand on their own by setting up and running their own businesses. The word “Udyogini” means “woman entrepreneur.” It is along this line that the particular scheme is portrayed. Udyogini Yojana supports women-owned ventures in all sectors such as agriculture, retailing, manufacturing, and services.
This scheme is conducted by the Women Development Corporation of various states of India. In this scheme, loans are sanctioned at a very low rate of interest, and in some cases, subsidies are also provided to women belonging to the economically backward class of society. The scheme even assists those who require business loans for women as financial assistance coupled with flexibility of repayment is allowed.
Objectives of the scheme
- Encourage women to be self-employed and independent.
- To offer financial help to women residing in rural and urban areas.
- To promote small-scale industries in various
- Subsidies for women who are economically backward sections of society.
- Help to reduce gender disparity through increased women’s involvement in the economy.
Features and Benefits of the Scheme
- Funding: This scheme allows women entrepreneurs to access loans of up to ₹3 lakh.
- Low Rate of Interest: The scheme lends at considerably low interest rates as compared to any regular loan through banks.
- Subsidy for Economically Weaker Sections Subsidy according to the family From which women belong SC women ST women Below Poverty Line families 30% to 50% of total End.
- No Collateral Required: In most cases, the loan is unsecured, meaning women do not need to provide any security henceit will be an unsecured business loan.
- Provide Support: The program caters to over 88 small-scale businesses such as agriculture, handicrafts, bakeries, etc.
Also read: Entrepreneurial Insight: Unravelling the Home Loan Puzzle for Success
Eligibility Criteria
To avail of Udyogini Yojana, the following conditions need to be fulfilled:
- The applicant must be a female.
- The applicant’s age should be between 18 and 55 years.
- The family income of an applicant may not exceed ₹1.5 lakh per year.
- SC/ST, BPL, or other special-category women get additional benefits and subsidies.
- The applicant should have not had any loan defaults in the previous loans.
Documents Needed
To submit an application under the Udyogini Yojana, the following documents are needed:
- Aadhar Card (Identity Proof)
- Ration Card or Income Certificate (Proof of Income)
- Residence Certificate (Proof of Address)
- Caste Certificate (if it is applicable to SC/ST category)
- Bank Account Details
- Business Plan or Project Report
- Passport-size Photographs
Online Application Procedure
Applying for Udyogini Yojana is simple and can be done online. Follow these steps:
1) Visit the Official Website
- You may visit the website of the Women Development Corporation of the state government or the bank offering the scheme.
- Some of the nationalized banks such as SBI, etc. also provide business loans under this scheme to support women.
2) Register/Login
- Click on the ‘Apply Online’ option.
- If you are a new user, register with your email ID and mobile number.
- Login using your credentials
3) Fill the Application Form
- Give personal details such as name, address, contact number, and Aadhar details.
- Fill up business-related information such as the type of business, investment required, and expected revenue.
4) Upload Required Documents
- Upload scanned copies of Aadhar Card, Income Certificate, Bank Details, and Business Plan.
5) Submit the Application
- After filling in all the details, verify the information and submit the application form.
6) Verification Process
- The concerned department will verify your documents and business plan.
- In case of approval of your application, the bank will issue a loan approval to you.
7) Loan Disbursal
- The loan amount will be credited directly into the women’s business owner’s bank account.
- Now you can begin your business with the financial support
Also read: How eNote Technology Can Help Optimize Your Credit Union’s Loan Processing Experience?
Conclusion
An excellent step taken by the government towards helping women entrepreneurs in India, which empowers women and brings economic development to India, is the Udyogini Yojana scheme. Women applying for business loans for women are to apply to this scheme, as the loan support offered here doesn’t need any collateral hence becoming one of the best unsecured business loan options.
We also have NBFCs, which provide loans to women entrepreneurs as well. There are flexible loan options, easy documentation, and quick approval provided by NBFCs, making them more appealing to women wanting to expand their businesses. Along with government schemes, women entrepreneurs can consider other alternate sources of funds through NBFCs. Some NBFCs provide free digital workshops on various topics, which can bring positive impacts for MSME businesses and take them to the next level.