Loan for Small Businesses (DAADC)
₹1.25 lakh small business loan · 4% interest · SC Antyodaya families in Gujarat
Loan for Small Businesses (DAADC) provides SC Antyodaya families in Gujarat with loans up to ₹1.25 lakh at 4% interest to start a small self-employment business. One of the lowest interest rates available for SC entrepreneurs.
About This Scheme
Loan for Small Businesses (DAADC) provides SC Antyodaya families in Gujarat with loans up to ₹1.25 lakh at 4% interest to start a small self-employment business. One of the lowest interest rates available for SC entrepreneurs.
Full official description
The "Loan for Small Businesses" scheme is implemented by the Dr. Ambedkar Antyodaya Development Corporation (DAADC) under the Social Justice and Empowerment Department, Government of Gujarat. The scheme aims to promote self-employment among Scheduled Caste (SC) individuals belonging to Antyodaya Anna Yojana (AAY) families by providing financial assistance for starting small businesses or self-employment ventures. Under this scheme, eligible beneficiaries are provided a loan of up to ₹1,25,000 at a concessional interest rate.
Benefits
- Loan amount: Up to ₹1,25,000
- Interest rate: 4% per annum (one of the lowest available)
- Repayment tenure: 60 months (5 years)
- State government contribution: 95% of the loan amount
- Guarantors required: Two guarantors
💡 Why Startups Should Care
At 4% interest with no own contribution required (state government covers 100%), this is essentially an interest-subsidized loan for SC Antyodaya entrepreneurs. The ₹2,300/month EMI over 5 years is manageable even for micro businesses generating modest daily revenue.
Who Can Apply (Eligibility)
Gujarat resident, Scheduled Caste community, from an Antyodaya Anna Yojana (AAY) family, with annual family income below ₹3 lakh.
How to Apply
- Visit daadconline.gujarat.gov.in and click "Apply Now" in the top menu.
- Click on the "Loan for Small Businesses" scheme.
- Select the loan category and fill in the loan amount.
- Fill in personal information, address, income details, loan purpose, and bank account details.
- Upload Aadhaar card, caste certificate, income certificate, school leaving, election card, ration card, and electricity bill.
- Click "Preview" to verify all details, then click "Submit".
- Save or print the Application ID/Reference Number for tracking.
Frequently Asked Questions
Who is eligible for this scheme?
Scheduled Caste (SC) individuals belonging to Antyodaya Anna Yojana (AAY) families residing in Gujarat.
What is the repayment period for the loan?
The loan must be repaid within 60 months (5 years).
Are there any guarantor requirements?
Yes, 2 guarantors are mandatory.
Is there any income limit?
Yes, annual family income must be ₹3,00,000 or less.
What is the contribution of the State Government?
The State Government contributes 100% towards the interest subsidy on the loan.
How much is the monthly installment?
The maximum monthly installment is approximately ₹2,302.
Are women eligible for this loan scheme?
Yes, eligible SC women from AAY families can also apply under this scheme.
Can a person from another state apply for this scheme?
No, only residents of Gujarat are eligible to apply for the Scheme.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Aadhaar card
- Caste certificate
- Income certificate
- Ration card
- Election card copy
- Age proof
- Bank account details
- School leaving certificate
- Copy of electricity bill