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Get Instant Loans With Prerana Micro Credit Finance Scheme – Apply Now

Komal Bajpai

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Updated: 21-11-2025 at 3:30 PM

Empowering Scheduled Caste and Scheduled Tribe

The Dr B.R. Ambedkar Development Corporation’s Prerana (Micro Credit Finance) Scheme is a scheme that empowers SC and ST women in Karnataka economically. The government scheme ensures the formation of self-help groups (SHGs) among women of rural and urban areas so that they can perform income–generating activities for their economic self–reliance.

In this article, you will get the detailed information about the Prerna scheme launch date, its objectives, benefits, application process, Prerna scheme in which State and much more.

About Prerana Scheme: Overview

The table below gives the key insights of the Prerana Scheme. To understand it better, read the table below:-

Feature	Details
Prerna scheme in which State	Scheduled Caste/Scheduled Tribe women in Karnataka.
Financial Assistance	₹2.50 lakhs for SHGs (₹25,000 per member: ₹15,000 subsidy + ₹10,000 loan).
Loan Terms	4% interest per annum, repayable in 36 monthly or 12 quarterly instalments.
Eligibility	Karnataka residents, SHG members, income limit of ₹1.5L (rural) or ₹2L (urban).
Application Process	Offline submission of required documents to the corporation.
Documents Required	SC/ST certificate, income proof, voter ID, Aadhaar, ration card, family tree.

What Is The Prerana (Micro Credit Finance) Scheme?

The Prerana Scheme has been developed to empower women of the Scheduled Caste and the Scheduled Tribe communities through the formation of SHGs and engaging in business pursuits. Funds support SHGs, which help in fostering entrepreneurship and sustainable economic growth. This is why it is widely recognised as an important Prerana Programme in Karnataka.

Objective Of The Prerana Scheme

Before understanding the benefits, it is important to know why this scheme was introduced. The Prerana Scheme was designed with clear objectives to support students in pursuing higher education and reducing financial hurdles.

Make women self-sufficient by providing them with the resources needed to start businesses.
Enhance self-sufficiency through SHGs aimed at income-earning activities.
Reach SC/ST women in both urban and rural regions for financial inclusion.

What Are The Benefits Of The Prerana Scheme?

The true strength of any government scheme lies in the benefits it provides. The Prerana Scheme ensures multiple advantages for students that go beyond just financial aid.

1. Women or SHGs members get a benefit of 25,000 rupees per member.

15,000 as a grant.
10,000 as an advance at 4 per cent per annum.

2. SHGs receive a total aid of ₹2.50 lakhs for income-generating activities.

3. Equal sharing of income among SHG members to ensure collective prosperity.

Who Are Eligibile For The Prerana Scheme?

Eligibility is the first step before applying for the scheme. The Prerana scheme eligibility conditions are clearly defined:

1. An applicant should be a member of the Scheduled Caste/Scheduled Tribe.

2. Shall be a resident of Karnataka and must be 21 years or older.

3. Annual family income:

Not exceeding Rs 1.5 lakh for rural regions.
Not exceeding Rs 2 lakh for urban areas.

4. Should belong to a self-help group (SHG).

5. The stall or unit owned, rented or leased by the SHG should be of 200 sq. ft. and above.

6. Those who have already taken subsidies from the government or the corporation shall be ineligible to apply for the same, either the applicants or their family members.

Exclusions

To provide clear transparency and avoid misuse of funds, the Prerana Scheme has well-defined exclusions. Any eligible SHG and applicant is identified through a systematic selection process.

A concerned committee selects the applicants and the SHGs among the eligible ones.
A scheme of particular purpose and aims is acceptable to the groups with entirely cooperative members.
Any wrong use of the amount or any ineligibility for any stage shall mean disqualification for the aid.

How To Apply For The Prerana Scheme?

In Karnataka, the Dr B. R. Ambedkar Development Corporation runs the Prerana Micro Credit Scheme. The entire process is primarily offline. Here’s how to apply:

Step 1: Collect the application form from the Dr B. R. Ambedkar Development Corporation or the nearest district office.

Step 2: The application will require information such as your name, address, your membership in SHG, the amount of assistance you wish to request, and a plan of enterprise.

Step 3: You will need to attach documents such as therefore it is contingent upon the inclusion of acceptable documents required as evidence of being eligible, like an Aadhar card, caste certificate, income evidence, bank account, or group registration if a Self Help Group.

Step 4: On the submission of the above to the Corporations/Development Authority’s official office, they will review the application.

Step 5: The authorities will seek eligibility through verification/approval. Upon their approval, the subsidy and margin loan will be transferred in accordance with the scheme.

Note:

The scheme in Karnataka expects ₹2.50 lakh per SHG, a) €15,000 subsidy + ₹10,000 margin money loan for each member (group of approximately 10 members).
Each Self Help Group (SHG) must consist of a minimum of 10 women, all ranging from the ages of 21 to 50.

What Are The Documents Required For The Prerana Scheme?

There are a few vital documents that the applicants are required to submit with the application for the Prerana Programme to check their eligibility and socioeconomic conditions..

Passport-sized photo with application.
Scheduled Caste/Scheduled Tribe certificate.
Annual family income certificate.
Family ration card.
Voter ID card.
Aadhaar card.
Family tree.
Landless Labour Certificate or Land Ownership Plan (if applicable).

Conclusion

The Prerana Scheme is a notable effort geared towards helping SC/ST women in Karnataka become economically independent. The scheme empowers women, promotes self-help groups and provides finance, which improves the community as a whole. The women are urged to seize this chance so as to enhance their families and society.

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