Karnataka Dhanashree Scheme

Scheme Introduction: A Brief Overview

The Karnataka Dhanashree Scheme is a livelihood support programme designed to help HIV-positive and HIV-affected women achieve financial independence through self-employment. Implemented by the Karnataka State Women's Development Corporation (KSWDC), the scheme provides financial assistance to eligible women for undertaking income-generating activities and building sustainable sources of income.

The scheme aims to promote self-employment by providing financial assistance to eligible beneficiaries for undertaking income-generating activities. Under the scheme, women can receive support to start small businesses and livelihood ventures such as tailoring units, dairy farming, livestock rearing, petty shops, food processing activities, and other self-employment enterprises. Along with financial support, the scheme encourages beneficiaries to build sustainable sources of income and improve their economic condition.

Since its launch, the Dhanashree Scheme has played an important role in supporting HIV-positive and HIV-affected women across Karnataka. The assistance is provided through a combination of loan and subsidy components, enabling beneficiaries to establish or expand livelihood activities according to their skills and local opportunities. The scheme not only focuses on economic rehabilitation but also seeks to strengthen the confidence, social inclusion, and overall well-being of women facing difficult circumstances.

In Karnataka Budget 2026-27, the Government further strengthened support for beneficiaries by increasing the financial incentive under the Dhanashree Scheme from ₹30,000 to ₹45,000. This enhancement is expected to help more women establish sustainable livelihood activities and improve their long-term economic security.

The Dhanashree Scheme is part of Karnataka's broader commitment to improving the socio-economic conditions of vulnerable women through targeted livelihood and rehabilitation programmes. Beneficiaries may also find the Chethana Scheme relevant, as it similarly focuses on supporting women facing difficult social and economic circumstances by promoting self-employment and sustainable livelihood opportunities. While the Dhanashree Scheme is specifically designed for HIV-positive and HIV-affected women, the Chethana Scheme extends financial assistance to other vulnerable women to help them establish income-generating activities and achieve financial stability.

Scheme Benefits

• Financial support for starting self-employment activities.
• Assistance through a combination of loan and subsidy.
• Encourages sustainable livelihood opportunities.
• Promotes economic independence among HIV-positive and HIV-affected women.
• Enhanced financial incentive announced under Karnataka Budget 2026-27.
• Financial Assistance Under the Scheme Original Assistance Pattern (2016)

Eligible beneficiaries received:

• Loan: ₹40,000
• Subsidy: ₹10,000
• Total Assistance: ₹50,000
• Revised Assistance Pattern (2017)

The scheme was revised and assistance was restructured as:

• Loan: ₹25,000
• Subsidy: ₹25,000
• Total Assistance: ₹50,000
• Latest Budget Update (2026-27)

The Karnataka Government has enhanced the incentive provided to beneficiaries of the Dhanashree Scheme from ₹30,000 to ₹45,000 for undertaking self-employment and income-generating activities.

Coverage Under the Scheme

Financial assistance can be used for approved self-employment and income-generating activities such as:

• Tailoring and garment-related activities
• Dairy and livestock-based activities
• Small retail and trading ventures
• Home-based enterprises
• Service-oriented businesses
• Other viable livelihood projects approved by the District-Level Committee

Eligibility Requirements

An applicant must fulfill the following conditions:

• Must be a permanent resident of Karnataka.
• Must be between 18 and 60 years of age.
• Must possess an active bank account.
• Must not be a defaulter in any bank or financial institution.
• Only one eligible woman from a family can avail benefits under the scheme.
• Must be willing to undertake an income-generating activity.
• Must submit the prescribed HIV-related certification wherever applicable.

Definition of Eligible Beneficiaries

The scheme is intended for:

• HIV-positive women residing in Karnataka.
• HIV-affected women residing in Karnataka.
• Wives of HIV-positive persons.
• Unmarried daughters above 18 years of age belonging to HIV-affected families.
• Women certified by ICTC or PPTCT Centres.

Note: Applicants claiming benefits under the scheme must submit a valid HIV-related certificate issued by an ICTC (Integrated Counselling and Testing Centre) or PPTCT Centre as prescribed under the scheme guidelines.

Required Documents

• Applicants may be required to submit:
• Duly filled application form.
• Passport-size photographs.
• Aadhaar Card.
• Residence proof.
• Bank passbook copy.
• BPL Card copy.
• ICTC/PPTCT medical certificate.
• Business proposal or income-generating activity plan.
• Loan Refusal Letter or related certificate, wherever applicable.
• Notarized ₹20 stamp paper for execution of agreement.
• Any other document prescribed by the implementing authority.

Loan Repayment Conditions

• Beneficiaries are required to repay the loan component as per the approved repayment schedule.
• Repayment generally begins after the prescribed initial period.
• Repayment receipts should be preserved for future reference.
• Legal action may be initiated in case of loan default.
• A Loan Clearance Certificate is issued after successful repayment of the loan.

Note: Repayment figures mentioned in the original translated guidelines should be verified with the latest official notification before reliance.

District-Level Approval Committee

Applications are reviewed by a District-Level Approval Committee consisting of:

• Sub-Director, Women and Child Development Department – Chairperson
• District Probation Officer
• ART/SLSA Representative
• District Industrial Association Representative
• Lead District Manager (LDM)
• Child Development Project Officer (CDPO) – Member Secretary

Steps to Apply

Since the Dhanashree Scheme application process is currently offline, eligible women need to visit the concerned District Women and Child Development Office or Karnataka State Women's Development Corporation (KSWDC) office to apply.

• Step 1: Visit the nearest District Women and Child Development Office or the Karnataka State Women's Development Corporation office and collect the Dhanashree Scheme application form.
• Step 2: Discuss the self-employment activity you wish to undertake and prepare a simple business proposal for the income-generating activity you plan to start.
• Step 3: Gather all the required documents, including identity proof, residence proof, bank account details, photographs, medical certificates (where applicable), and other supporting documents.
• Step 4: Fill out the application form carefully and attach all the required documents before submitting it to the concerned authority.
• Step 5: The submitted application and documents will be verified by the concerned officials to confirm eligibility under the scheme.
• Step 6: Eligible applications are forwarded to the District-Level Approval Committee for consideration and approval.
• Step 7: Once approved, the application is recommended to the Karnataka State Women's Development Corporation for sanction of financial assistance.
• Step 8: After sanction, the approved loan and subsidy amount is transferred directly to the beneficiary's bank account, allowing her to start the proposed income-generating activity.

Selection Process

• Submission of application by eligible beneficiary.
• Verification of eligibility and supporting documents.
• Scrutiny by Taluk and District authorities.
• Evaluation of proposed income-generating activity.
• Approval by District-Level Approval Committee.
• Recommendation to Karnataka State Women's Development Corporation.
• Release of financial assistance to selected beneficiaries.

How Financial Assistance is Released

After approval:

• The Karnataka State Women's Development Corporation issues sanction orders.
• Loan and subsidy amounts are transferred directly to the beneficiary's bank account through electronic transfer.
• Beneficiaries are required to utilize the assistance for the approved activity only.

Beneficiary Responsibilities

Beneficiaries must:

• Utilize assistance only for the approved activity.
• Start the proposed activity within the prescribed period.
• Submit progress reports wherever required.
• Cooperate during inspections and verification.
• Repay the loan component as per guidelines.
• Maintain records related to the activity.

Responsibilities of Officials

Officials are responsible for:

• Verifying applications and supporting documents.
• Conducting eligibility checks.
• Providing guidance to beneficiaries.
• Monitoring implementation of approved activities.
• Reviewing loan repayment status.
• Submitting periodic reports to the Karnataka State Women's Development Corporation.

Important Conditions

• Only one eligible woman from a family can avail assistance.
• Assistance is intended exclusively for approved income-generating activities.
• Beneficiaries must maintain an active bank account.
• Funds are released through direct bank transfer.
• Monitoring and review are conducted at Taluk, District, and State levels.
• Beneficiaries must comply with all conditions specified by the Corporation.

Relevant Links

• Official Webiste of Karnataka State Women's Development Corporation
• Guidelines for Dhanashree Scheme
• Self Employement Details of Dhanashree
• Dhanashree Scheme Details at the Official Page
• Financial Update in the Budget 2026-2027 about the Dhanashree Scheme

Contact Information

• Districts Level Development Inspectors Contact Details