6% Interest Subsidy on Loans taken through Banks up to a Limit of Rs.5 Lakh for Self-Employment
6% interest subsidy on ₹5 lakh bank loan · ST self-employment · Gujarat
This Gujarat scheme gives Scheduled Tribe (ST) individuals a 6% interest subsidy on bank loans up to ₹5 lakh taken for self-employment, making it much cheaper to borrow and start a business in tribal areas.
About This Scheme
This Gujarat scheme gives Scheduled Tribe (ST) individuals a 6% interest subsidy on bank loans up to ₹5 lakh taken for self-employment, making it much cheaper to borrow and start a business in tribal areas.
Full official description
The "6% Interest Subsidy on Loans taken through Banks up to a Limit of Rs.5 Lakh for Self-Employment" scheme was launched by the Tribal Development Department, Government of Gujarat. It aims to promote self-employment among scheduled tribe (ST) individuals by making business loans affordable. Under this scheme, ST beneficiaries availing loans for self-employment are provided a interest subsidy to reduce financial burden and encourage entrepreneurship.
Benefits
- Interest subsidy: 6% on bank loans for self-employment
- Maximum eligible loan: ₹5,00,000
- Effective saving: Up to ₹30,000/year on a ₹5 lakh loan — significantly reduces your borrowing cost
💡 Why Startups Should Care
A 6% interest subsidy on a ₹5 lakh loan means your effective interest rate drops to near-zero or zero depending on the bank's rate. For an ST entrepreneur already approved for a bank loan, filing for this subsidy essentially makes your business loan free — it's one of the most straightforward subsidies to claim.
Who Can Apply (Eligibility)
Scheduled Tribe (ST) category, resident of tribal areas in Gujarat, taking a bank loan for self-employment purposes.
How to Apply
- Visit the office of the Project Administrator, Gujarat Tribal Development Corporation, Gandhinagar during office hours.
- Collect the application form and fill in your personal details, loan details, and proposed business details.
- Attach required documents and submit the application to the Project Administrator's office.
- The office will verify your loan approval and process the interest subsidy reimbursement.
Frequently Asked Questions
Who is eligible for this scheme?
Only Scheduled Tribe individuals from Gujarat who have taken bank loans for self-employment.
What is the maximum loan amount eligible for subsidy?
The maximum loan amount of ₹5,00,000 with 6% interest subsidy.
Is there an income limit for applicants?
No, there is no income limit.
What type of loans are covered under this scheme?
Loans taken for self-employment or business purposes approved by the Corporation.
Can both men and women apply for this scheme?
Yes, it is open to all ST applicants regardless of gender.
Where can the application form be obtained?
From the Project Administrator’s office in Gandhinagar or tribal district offices.
What documents are required?
Aadhaar card, caste certificate, loan approval letter, bank passbook, and passport size photos.
Where should the application be submitted?
The application submitted at the office of the Tribal District Sponsorship Administrator.
Is there any cost for the application form?
No, it is free of cost.
Who implements the scheme?
The scheme implemented by the Gujarat Tribal Development Corporation.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Aadhaar card
- Caste certificate
- Bank passbook or cancelled cheque
- Loan approval letter from bank
- Passport-size photos