Women entrepreneurship across the country, the Central Government has launched the Udyogini Scheme 2025, offering interest-free loans and subsidies up to 50% for eligible women. The scheme aims to empower women, especially from rural and economically weaker sections, to start or expand small businesses with government-backed financial assistance.
Under the Udyogini Scheme, women can get business loans ranging from ₹1 lakh to ₹3 lakh to start or scale their ventures. Women belonging to SC, ST, or differently-abled categories are eligible for 0% interest loans, while those in the general category will receive loans at subsidised interest rates.
The scheme also provides up to 30% subsidy for general applicants and up to 50% subsidy for SC/ST or widowed women. To qualify for the subsidy, the annual family income must be below ₹2 lakh.
Beneficiaries must repay the loan in easy EMIs within six years, making it easier for women to manage repayments while running their business.
Any woman aged between 18 and 55 years can apply for the Udyogini Scheme. The scheme primarily targets women from economically weaker and rural backgrounds who want to set up or expand small-scale businesses such as:
Tailoring and embroidery units
Grocery or retail shops
Handicrafts and homemade product manufacturing
Dairy, animal husbandry, and agricultural activities
Small-scale service and trading businesses
Applicants must ensure that the family income does not exceed ₹1.5 lakh per year (some relaxations apply for widowed or differently-abled women).
One of the key highlights of the scheme is that most loans are collateral-free, meaning women do not need to mortgage property or assets to access credit. In addition, beneficiaries receive entrepreneurship development training under the government's skill programs, helping them manage finances, marketing, and operations efficiently.
The scheme is implemented through public sector banks, private banks, NBFCs, and state women development corporations.
Applicants need to provide:
Aadhaar Card, PAN, or Voter ID (as identity proof)
Address proof (ration card, electricity bill, etc.)
Recent passport-size photographs
Family income certificate or BPL card
Caste certificate (if applicable)
Bank passbook copy
A short business proposal or project plan detailing the venture
Visit the nearest bank branch or State Women Development Corporation office that offers the Udyogini Scheme.
Fill out the application form (available both online and offline).
Attach all necessary documents along with your business proposal.
The bank will verify your details and assess the feasibility of your business plan.
Once approved, the loan amount is disbursed to your account.
You may also be asked to attend a short training program before or after disbursement.
The Udyogini Scheme is currently being implemented across several states in collaboration with SIDBI (Small Industries Development Bank of India) and state-level Women Development Corporations.
Officials say the initiative is expected to boost rural employment and entrepreneurship, helping women become financially independent. It also aligns with the government's vision of "Atmanirbhar Bharat" (Self-reliant India) by encouraging small business ownership among women.
Experts note that apart from credit, the focus on training and guidance under the Udyogini Scheme will help women sustain their ventures in the long term.
Loan Amount: ₹1 lakh to ₹3 lakh
Interest Rate: 0% for SC/ST/disabled; low rate for others
Subsidy: 30%-50% depending on category
Tenure: Up to 6 years
Eligibility: Women aged 18-55 years
Implementing Body: Banks, NBFCs, Women Development Corporations