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💼 Government Schemes for Business & Self-Employment in Karnataka 2026

9 government schemes for business & self-employment in Karnataka — benefits, who can apply, documents and how to apply. Check your eligibility free.

Also searched as Swarozgar Yojana, Business Loan Yojana in Karnataka.

Karnataka (9)

Yuva Nidhi Unemployment Allowance — ₹3,000/month (graduates) or ₹1,500/month (diploma holders) for up to 2 years while job searching
Devaraj Urs Backward Classes Dev. Corp. Loan — Loan ₹1–₹10 Lakh at 6% interest for SC/ST/OBC self-employment
Karnataka Skill Connect (Free Vocational Training) — Free skill training (3–6 months) in IT, retail, healthcare & construction + placement support
Udyogini — Women Entrepreneur Scheme — Interest-free or subsidised loan ₹1–₹3 Lakh for women starting small businesses (income < ₹1.5L)
Handloom Weaver Welfare & Credit Scheme — Subsidised yarn, free loom upgrades, health insurance ₹15,000 & ₹2 Lakh accidental death cover for weavers
Divyangjan Self-Employment Loan (KA) — Loan up to ₹5 Lakh at 4% interest + ₹25,000 margin money grant for persons with 40%+ disability to start business
Karnataka Startup Policy 2022 — Seed Fund & Incentives — Seed funding ₹20–₹50 Lakh, 5-year SGST reimbursement, free co-working space & mentorship for DPIIT-recognised Karnataka startups
Karnataka Rural Homestay Scheme — Subsidy up to ₹5 Lakh & interest-free loan for setting up rural homestays + branding & listing support via KarnataKa Tourism portal
Karnataka MSME Investment Promotion Scheme — 15%–25% capital investment subsidy (max ₹50 Lakh), 5-year power tariff subsidy & stamp duty exemption for new MSME units in Karnataka