Term Loan Scheme (GMFDC)
₹1–20 lakh business loan · minority communities Gujarat
Gujarat Minorities Finance and Development Corporation (GMFDC) offers term loans of ₹1 lakh to ₹20 lakh at subsidized interest rates to individuals from minority communities for self-employment in agriculture, trade, transport, handicrafts, and service businesses. Interest is 6% for lower-income applicants; female beneficiaries with higher income also get 6%, while male applicants in that bracket pay 8%. Apply online at gmfdconline.gujarat.gov.in.
About This Scheme
Gujarat Minorities Finance and Development Corporation (GMFDC) offers term loans of ₹1 lakh to ₹20 lakh at subsidized interest rates to individuals from minority communities for self-employment in agriculture, trade, transport, handicrafts, and service businesses. Interest is 6% for lower-income applicants; female beneficiaries with higher income also get 6%, while male applicants in that bracket pay 8%. Apply online at gmfdconline.gujarat.gov.in.
Full official description
The scheme "Term Loan Scheme" is implemented by Gujarat Minorities Finance and Development Corporation (GMFDC) under the Social Justice and Empowerment Department, Government of Gujarat. The scheme aims to promote self-employment among individuals from the minority communities by providing financial assistance for agriculture and allied activities, small-scale businesses, craftsmanship, transport sector, traditional occupations, and service-based businesses/trades. Under this scheme, beneficiaries can avail loans at concessional interest rates to purchase equipment, raw materials, or working capital.
Benefits
- Loans from ₹1,00,000 to ₹20,00,000 for agriculture, trade, transport, handicrafts, and service businesses
- Interest rate: 6% per annum for income up to ₹1,20,000; 8% (male) / 6% (female) for income between ₹1,20,000 and ₹8,00,000
- Repayment: 60 equal monthly installments over 5 years (including interest)
💡 Why Startups Should Care
The wide loan range (₹1-20 lakh) and broad eligible sectors — agriculture, craft, transport, services — make this a flexible financing option for minority entrepreneurs across almost any small business idea.
Who Can Apply (Eligibility)
- Must be a Gujarat resident
- Must belong to a minority religious community (Muslim, Christian, Sikh, Jain, Buddhist, Parsi, or Jewish) or linguistic community (Sindhi, Marathi, or Urdu)
- Must not already have a loan from any government corporation or bank under similar schemes
- Annual family income: up to ₹98,000 (rural) or ₹1,20,000 (urban) for the lowest interest rate; families earning up to ₹8,00,000 are also eligible
- Age: 21 to 45 years
Exclusions
How to Apply
- Visit the Gujarat Minority Finance and Development Corporation official website (gmfdconline.gujarat.gov.in).
- Register with your personal and business details.
- Upload identity proof, address proof, and age proof.
- Select your business category and submit the loan application.
- Track status through the portal after submission.
Frequently Asked Questions
Who can apply for this scheme?
Applicants from minority religious communities like Muslim, Christian, Sikh, Jain, Buddhist, Parsi, and Jewish or linguistic communities like Sindhi, Marathi, and Urdu in Gujarat can apply.
Is there any age limit to apply for the benefit?
Yes, applicants must be between 21 and 45 years of age.
Is it necessary to have technical education for availing the scheme?
Yes, applicants should possess either experience or the necessary technical education relevant to the business they intend to start.
Can I apply if I already received a loan from any other government corporation?
No, applicants or their family members should not have received a loan from GMFDC, Gujarat Backward Class Development Corporation, or any central/state government institution or bank.
What are the business sectors eligible under this scheme?
Eligible business sectors include agriculture, allied businesses, technical self-employment, service-type businesses, handicrafts, and the transport sector.
What is the mode of repayment for this scheme?
Repayment is made in 60 equal monthly instalments within five years.
Is there any penalty for delayed repayment?
Yes, a penal interest of 2% is charged on delayed payments.
Can both male and female applicants avail this scheme?
Yes, both male and female applicants can avail of the scheme, subject to income criteria and interest rates.
Where can I get the offline application form?
The application form can be obtained from the GMFDC office in Gandhinagar or from the District Deputy Director/District Social Welfare Officer (Developing Castes) in the respective districts.
What documents are needed to apply?
Documents required include the application form, identity proof, address proof, age proof, minority certificate, income certificate, educational qualification, experience certificate, bank passbook, business proposal, and collateral documents if needed.
Does this scheme aim to improve the technical skills of beneficiaries?
Yes, one of the objectives of the program is to help improve the technical and entrepreneurial skills of individuals from minority communities.
Can an applicant apply if they or their family have previously received a loan from this specific Corporation?
No, if the applicant or any member of their family has previously received a loan from Gujarat Minority Finance and Development Corporation Limited, they are not eligible.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Proof of identity (Aadhaar card, Voter ID, PAN card)
- Proof of address (utility bill, Aadhaar card)
- Proof of age (birth certificate, school leaving certificate)