All You Need to Know About the Udyogini Yojana Scheme for SMEs

The term ‘Udyogini’ means a woman entrepreneur. TheUdyogini Yojana Scheme is a Government of India scheme that offers subsidized credit facilities to aspiring female entrepreneurs from underdeveloped and rural locations. The scheme provides financial empowerment to promote self-reliance and entrepreneurship among women.

Features of the scheme

  1. Economical interest rates

Women business owners who require funds for their ventures are eligible to receive affordable loans under the Udyogini Yojana Scheme. In some special situations, the loan may be available at no interest.

  1. High loan amount

A major constraint to the growth of small and medium enterprises (SMEs) is the lack of funds. Under this scheme, women entrepreneurs may receive an amount up to INR 3 lakh based on the SME loan eligibility.

  1. Low-income limit requirement

To avail of a loan under this scheme, the annual income of the family must be less than INR 1.5 lakh. However, widows and disabled women can qualify for the loan without any income requirement.

  1. Available for various industries

The Udyogini SME loan scheme offers finance for 88 small-scale industries. Some of these include incense stick manufacturing, grocery, bakery, library, and sewing, among others. Women who want to start an agriculture business may receive interest-free loans under this scheme.


Along with a duly completed application form, applicants need to provide:

  • Ration card
  • Aadhar card
  • Income certificate
  • Birth certificate
  • Bank passbook
  • Below Poverty Line (BPL) card
  • Caste certificate

Eligibility criteria

This type of business loan is available only to entrepreneurs who meet the following criteria:

  • The total annual income of the family should be less than INR 1.5 lakh
  • The business owner must be a woman
  • The age of the applicant must be between 18 and 55

Apart from offering competitive SME loan interest rates, the Udyogini Yojana Scheme provides credit facilities to all sections of the society without any preference or discrimination. Several private and public sector banks offer these loans at nominal interest rates. Moreover, these loans do not require any collateral and are available without any processing fees.

Non-banking finance companies (NBFCs) like Mahindra Finance offer loans to women entrepreneurs under this scheme. To know more about this, visit the company’s website.