Microcredit Finance Scheme- Self Help Groups (DAADC)
SHG microloan ₹50,000 · 6% interest · no guarantor · SC Antyodaya families
The Microcredit Finance Scheme for Self Help Groups (DAADC) provides micro-loans to SC Antyodaya SHGs in Gujarat to start small businesses. Each member can borrow up to ₹50,000, and the SHG can get up to ₹5 lakh total, with 95% funded by the government at 6% interest.
About This Scheme
The Microcredit Finance Scheme for Self Help Groups (DAADC) provides micro-loans to SC Antyodaya SHGs in Gujarat to start small businesses. Each member can borrow up to ₹50,000, and the SHG can get up to ₹5 lakh total, with 95% funded by the government at 6% interest.
Full official description
The "Microcredit Finance Scheme- Self Help Groups" is implemented by the Dr. Ambedkar Antyodaya Development Corporation (DAADC) under the Social Justice and Empowerment Department, Government of Gujarat. It aims to promote self-employment among Scheduled Caste (SC) individuals and Antyodaya Self-Help Groups by providing microloans for starting small-scale businesses. Under this scheme, unemployed individuals from SC communities receive financial assistance to become self-reliant through entrepreneurship.
Benefits
- Loan amount: Up to ₹50,000 per member (maximum ₹5,00,000 per SHG)
- Interest rate: 6% per annum
- Government covers 95% — your share is just ₹2,500 on a ₹50,000 loan
- No guarantor required
- EMI: ₹1,445/month over 3 years (36 instalments)
💡 Why Startups Should Care
This scheme's standout feature is that no guarantor is required — a common barrier for SC entrepreneurs accessing formal credit. With ₹50,000 at 6% and EMIs of just ₹1,445/month, it's a practical first-business loan for SHG members with a simple trade idea.
Who Can Apply (Eligibility)
Must be an SC community member and part of an Antyodaya Anna Yojana (AAY) Self Help Group. Annual family income must be below ₹3 lakh.
How to Apply
- Visit daadconline.gujarat.gov.in and click "Apply Now" in the top menu.
- Click on the "Microcredit Finance Scheme - SHG" loan scheme.
- Select the loan category and fill in the loan amount.
- Fill in personal information, address, income details, loan requirement, and bank account details.
- Upload caste certificate, income certificate, Aadhaar card, passport-size photo, bank passbook, and address proof.
- Click "Preview" to verify all details, then click "Submit".
- Save or print your Application ID/Reference Number for future tracking.
Frequently Asked Questions
What is the maximum loan amount I can get?
Up to ₹50,000 for individuals; in some cases, up to ₹5,00,000.
Do I need a guarantor to apply?
No guarantor is required for this scheme.
What is the interest rate on the loan?
A fixed interest rate of 4% per annum.
What documents are required to apply?
Aadhaar card, caste certificate, bank details, income certificate, etc.
How do I apply for the scheme?
Do I need to pay any fees to apply?
No, the application is completely free.
Can I use the loan for personal purposes?
No, it must be used for setting up a business.
Can residents of other states apply?
No, only permanent residents of Gujarat are eligible.
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
- Business address proof
- Identity proof
- Passport-size photos
- School leaving / age proof
- Bank passbook