Starting a business is a dream for many women, but a lack of money often becomes the biggest hurdle. To address this issue, the Government of India introduced the Udyogini Yojana, a special scheme designed to support women entrepreneurs by offering collateral-free loans of up to ₹3 lakh.
This scheme enables women from low-income and middle-income backgrounds to launch or grow small businesses without the burden of pledging property or assets as security. Through platforms like 24hrLoan, women can also compare other government and bank loan solutions alongside Udyogini Yojana to identify optimal financial support.
What Is Udyogini Yojana?
Udyogini Yojana is a government-backed loan initiative aimed at empowering women by promoting self-employment and entrepreneurship. Its primary objective is to help women achieve financial independence by providing accessible loans for small business ventures.
The scheme is especially beneficial for:
- Housewives
- Rural women
- Small traders
- Women artisans
- Self-employed women
Udyogini Yojana Loan Quick Recap
| Loan Amount | Up to ₹3,00,000 |
| Collateral Required | ❌ No |
| Interest Rate | Subsidized / low (varies by state & bank) |
| Target Group | Women entrepreneurs |
| Purpose | Start or expand small business |
| Loan Type | Government-supported business loan |
Benefits of Udyogini Yojana Loan
1. Collateral-Free Loan
Women do not need to mortgage, gold, or property. This makes the scheme safe and stress-free.
2. Financial Support for First-Time Entrepreneurs
Even women starting a business for the first time can apply.
3. Low Interest Burden
Interest rates are generally lower than those for regular business loans, and subsidies may apply to eligible applicants.
4. Encourages Women’s Empowerment
The scheme promotes financial independence and confidence among women.
5. Wide Business Coverage
Loans can be used for multiple business activities like tailoring, dairy, retail shops, beauty parlours, food businesses, and handicrafts.
Who Can Apply for Udyogini Yojana? (Eligibility Criteria)
To apply under this scheme, the applicant must meet these conditions:
- Applicant must be a woman.
- Age should generally be 18 to 55 years.
- Annual family income should be within government limits (varies by state)
- Applicant should be involved in or planning to start a small business.
- Preference may be given to women from SC/ST, minority, widowed, or disabled categories.
Eligibility rules may differ slightly based on the state and the implementing bank.
Businesses Covered Under Udyogini Yojana
Some common business activities supported include:
- Tailoring & embroidery
- Beauty parlour & salon
- Kirana & retail shops
- Dairy farming
- Poultry & animal husbandry
- Handicrafts & cottage industries
- Food processing & tiffin services
- Small manufacturing units
Also Read: 5 Business Ideas with Zero Investment
Documents Required for Udyogini Yojana
Applicants usually need the following documents:
- Aadhaar Card
- PAN Card
- Address proof
- Passport-size photographs
- Income certificate
- Caste certificate (if applicable)
- Business plan or activity details
- Bank account details
Banks may ask for additional documents depending on the case.
Top Lender Offering Business Loan
| Banks / NBFCs | Interest Rate | Loan Amount | Repayment Tenure | |
| WeRize | 16% p.a. to 22% p.a. | Rs.50,000 to Rs.25 lakh | 12 months to 36 months | Apply Now |
| Faircent | 14% p.a. to 21% p.a. | Rs.50,000 to Rs.10 lakh | 12 months to 36 months | Apply Now |
| IIFL | 11.25% p.a. to 33.75% p.a. | Rs.50,000 to Rs.30 lakh | 12 months to 60 months | Apply Now |
| Chola Finance | 14% p.a. to 21% p.a. | Rs.30,000 to Rs.20 lakh | 12 months to 60 months | Apply Now |
| Poonawalla Fincorp | 15% p.a. to 28% p.a. | Up to Rs.50 lakh | Up to 3 years | Apply Now |
| FT Cash | 12% p.a. to 22% p.a. | Up to Rs.50 lakh | Up to 3 years | Apply Now |
| NeoGrowth | 19% p.a. to 24% p.a. | Up to Rs.75 lakh | Up to 7 years | Apply Now |
| FlexiLoans | 12% p.a. onwards | Up to Rs.1 crore | 1 year to 5 years | Apply Now |
| LendingKart | 12% p.a. to 28% p.a. | Up to Rs.1 crore | 12 months to 36 months | Apply Now |
| Ashv Finance | 18% p.a. to 21% p.a. | Up to Rs.40 lakh | 12 months to 36 months | Apply Now |
| Aditya Birla | 14% p.a. onward | Up to Rs.15 lakh | 12 months to 36 months | Apply Now |
| Tata Capital | 16.50% to 19% p.a. | Up to Rs.75 lakh | 12 months to 36 months | Apply Now |
How to Apply for Udyogini Yojana?
Step 1: Choose the Implementing Bank
Visit a government-authorized bank or cooperative bank that offers Udyogini Yojana.
Step 2: Prepare Documents
Collect all required personal and business-related documents.
Step 3: Submit Application
Fill out the loan application form and submit it along with documents.
Step 4: Verification Process
The bank verifies your documents and business plan.
Step 5: Loan Approval & Disbursement
Once approved, the loan amount is credited to your bank account.
How 24hrLoan Can Help Women Entrepreneurs
While Udyogini Yojana is a great government initiative, not everyone qualifies due to income limits or state-specific rules. This is where 24hrLoan helps.
Through 24hrLoan, women can:
- Compare multiple bank & NBFC business loans.
- Find collateral-free loan options.
- Apply online with minimal paperwork.
- Get faster approval support.
- Explore government and private loan alternatives.
Udyogini Yojana vs Regular Business Loans
| Feature | Udyogini Yojana | Regular Business Loan |
| Collateral | Not required | Often required |
| Interest Rate | Lower / subsidized | Higher |
| Target Group | Women only | All |
| Loan Amount | Up to ₹3 lakh | Higher limits |
| Accessibility | Government banks | Banks & NBFCs |
Also Read: Business Loan in Kolkata
Conclusion
Udyogini Yojana is a powerful step by the government to help women turn their business ideas into reality. By offering collateral-free loans up to ₹3 lakh, the scheme reduces financial barriers and encourages women to become self-reliant entrepreneurs.
For women who are not eligible or need quicker funding, 24hrLoan provides access to multiple lenders and alternative business loan options—making business dreams possible without delays.