Karnataka women can claim up to ₹3 lakh in loan subsidy: here’s how

Women in Karnataka looking to start a small business now have a state-backed route to cheaper credit through the Udyogini scheme, run by the Karnataka State Women’s Development Corporation. The scheme, first launched in 1997-1998 and amended in 2004-2005, offers a subsidy on bank loans taken to fund trade and service-sector ventures, from tailoring and embroidery to papad-making, printing and dyeing, and small-scale manufacturing.

Eligibility comes down to a handful of clear conditions. The applicant must be a woman between 18 and 55 years old and a permanent resident of Karnataka, with no history of defaulting on a past loan. For women in the general and special categories, family income must stay below ₹1,50,000 a year; there is no income cap at all for widowed or disabled applicants. Preference is given to extremely poor, destitute, widowed and physically challenged women, as well as those who have already completed skill or vocational training through the Corporation or another department. About 10% of the scheme’s allocated target is set aside for members of World Bank-assisted Swashakthi or Stree Shakthi self-help groups.

The subsidy amount depends on category. Women from Scheduled Caste and Scheduled Tribe backgrounds can access a unit cost of ₹1,00,000 to ₹3,00,000, with a subsidy covering 50% of the loan, provided family income stays under ₹2,00,000 a year. Women in the special and general categories can borrow up to a maximum unit cost of ₹3,00,000, with a subsidy of 30% or up to ₹90,000, and selected beneficiaries also get entrepreneurship development programme (EDP) training.

There is no online application route for the Udyogini scheme at present. Applicants have to visit their nearest bank with the required documents and fill out an application form, available at the offices of the Deputy Director or Child Development Project Officer (CDPO), or downloadable from the Corporation’s website, www.kswdc.com. The completed form and supporting documents then go to the nearest bank or Karnataka State Finance Corporation (KSFC) branch, where officials verify the paperwork and the business proposal before processing the loan. The bank sends a request to the Corporation for release of the subsidy, and once approved, the loan is disbursed either to the applicant’s bank account or directly to the supplier for machinery and equipment costs.

Applicants need to gather a set of documents before heading to the bank: three passport-size photographs, a certificate of training or experience related to the proposed activity, a Detailed Project Report (DPR), a Ration Card or Voter ID, an Annual Income Certificate for the family, a Caste Certificate for SC/ST applicants, and quotations for any machinery, equipment or other capital expenses the loan will cover. There is no fixed application deadline listed for the scheme, which is administered on an ongoing basis by the Karnataka State Women’s Development Corporation under the Government of Karnataka.

Source: myscheme.gov.in

Wikimedia Commons/by Gavaskar.tk