Introduction
The Udyogini Scheme is a scheme launched by the Women Development Corporation, and supported by various state governments and banks. This scheme provides loan assistance to the women entrepreneurs who start their business and expand it. The scheme is for women of an economically backward class who primarily reside in rural areas. This not only develops the economy of the government but also supports women’s empowerment and equality between both genders in the business field.
Let’s discuss on;
- Importance Of The Udyogini Scheme
- Features Of The Udyogini Scheme
- How to Apply for the Udyogini Scheme?
The importance of the Udyogini Scheme are;
Economic Support to Small-scale Entrepreneurship: In this initiative, financial support is provided to help women start small-scale ventures, which, later on, will work out as income-generating for them. It targets the low-income earning women who otherwise cannot provide resources that support their venture ideas.
Promoting Self-Reliance: Women can establish their own enterprises under the Udyogini Scheme. The scheme focuses on helping the ideas of self-reliance among women so that they do not need to rely on others for their money matters.
Promoting Entrepreneurship in Rural Areas: This scheme especially focuses on helping the women who are in rural areas, where that business will expand and provide employment opportunities to other women within those areas. The Udyogini Scheme provides a low-interest loan and resource which supports women in becoming entrepreneurs.
Women’s Empowerment and Gender Equality: The greater the women’s empowerment in business, the greater the possibilities of gender equality, particularly in sectors where entrepreneurship has long been dominated by men. The scheme enables women to cross social and economic borders and enter the business world.
Features of the Udyogini Scheme
Loan Amount: Under the Udyogini Scheme, a loan for women entrepreneurs up to Rs. 3 lakhs is available for women applicants. The funds received through such a scheme can be utilized for purchasing equipment and materials; even initial infrastructure can be acquired to start an MSME or expand it.
Subsidized Interest Rate: Loans offered under this scheme are provided at subsidized interest rates so that the repayment by a woman is easy to carry out. Sometimes the rate may be at 0% depending upon the profile of the applicant and the business model run by the women.
No Collateral Requirement: Most women fear loan applications as they do not have any collateral. However, the Udyogini Scheme gives loans without any form of collateral up to some limits, which encourages more women to apply for the loan without fear of asset risk.
Eligibility for Multiple Business Sectors: Eligible women can start businesses or expand in any type of sector including agriculture, retail, manufacturing, and the rest. As the range is pretty vast, all such women can search for business options according to their skills and interest in business.
Eligibility criteria through Age and Income: The woman candidate shall be within the age group of 18 to 55 years. Additionally, the family income of the applicant shall not be more than Rs. 1.5 lakhs per year.
Special Facilities for Minority Sections: In the Udyogini Scheme, special facilities are being provided to women from the backward sections, like SC/ST or any other class. Under such an applicant’s name, even higher subsidies and special concessions can be given.
How to Apply for the Udyogini Scheme?
Visit Official Website: You can visit the official Udyogini Scheme website or the website of the bank that offers this scheme, for example, Punjab National Bank or State Bank of India. If you find it difficult to apply online, you can reach out to your nearest banks as well.
Eligibility Check: The applicant must fall within the age bracket of 18 and 55 years, with a yearly family income of less than ₹ 1.5 lakh. The applicant is supposed to be an Indian resident and should not have had any loan defaults in any financial institution earlier.
Fill up the Application Form: After you confirm your eligibility, fill up the online application form. You will have to provide basic details like your name, contact information, family income, and other relevant information.
Upload the Required Documents: You will be required to upload documents like your Aadhaar card, income proof, address proof, bank statement, and possibly a business plan. Ensure that these documents are clear and updated.
Submit the Form: Fill in all the details and attach the necessary documents along with submitting a form. You will be provided with an acknowledgment or application reference number at this end. Do save the number for tracking the status of your application.
Wait for Approval: After applying, the concerned authorities will verify your details. Only once they find all your details correct you will get loan approval whereby the funds will be transferred into your bank account.
Conclusion
The Udyogini scheme is transformative for women wanting to be entrepreneurs or expand their businesses, giving loans at low rates of interest and minimal collaterals. It is very effective in helping women in the initial steps of entrepreneurship with necessary finance and empowerment.
NBFC are also a very good source for lending unsecured business loan to women. Approvals are faster with flexible terms that are easy for small or one-of-a-kind MSMEs. Recently, with added support from these NBFCs, more resources have become available for women entrepreneurs to make their business dreams come true.
