Loan for Small Businesses (DAADC)
By Development Corporation for Rabari/Bharwad and Allied Castes, Government of Gujarat (DAADC)
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Quick Answer
Loans up to ₹1.25 lakh at 4% interest from DAADC, Gujarat, for Scheduled Caste individuals from Antyodaya families starting or expanding a small business.
About this loan
Scheduled Caste (SC) individuals from Antyodaya Anna Yojana (AAY) families in Gujarat can get a loan of up to ₹1,25,000 at 4% annual interest to start or expand a small business or self-employment venture. The scheme is run by the Dr. Ambedkar Antyodaya Development Corporation (DAADC) under the Social Justice and Empowerment Department, Government of Gujarat.
The state government bears the cost, so you make no contribution. You repay over 60 months (5 years), at about ₹2,302 a month.
To apply you must live in Gujarat, have annual family income of no more than ₹3,00,000, and be able to provide two guarantors.
Eligibility
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Grant providers
Provider
Development Corporation for Rabari/Bharwad and Allied Castes, Government of Gujarat (DAADC)Gujarat · India
Co-organizer
Social Justice and Empowerment Department, Government of GujaratGandhinagar · Gujarat · India
The Social Justice and Empowerment Department is a department of the Government of Gujarat, with its office in Block No. 5, Sachivalaya, Gandhinagar. It runs loan and self-employment schemes for Scheduled Castes, backward classes and Antyodaya Scheduled Caste people, and the…
Learn moreBenefits & Funding
- Amount
- Up to ₹1.25L
- Fund type
- Debt
- Repayment
- Repayable
What You Get
The scheme provides a loan of up to ₹1,25,000/- at a highly concessional annual interest rate of 4%. This financial support is designed to be fully borne by the state government, meaning no beneficiary contribution is required, making it accessible for low-income families. The loan is repayable over a flexible tenure of 60 months (5 years), with approximate monthly installments of ₹2,302/-. This structure is intended to ease the repayment burden while enabling beneficiaries to start or expand small businesses and self-employment ventures effectively, thereby promoting self-reliance and economic upliftment.
- Disbursement
- Lump Sum
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection process for the 'Loan for Small Businesses' scheme involves a thorough review of submitted applications to ensure compliance with all eligibility criteria. Initially, applications are screened to verify the applicant's residency in Gujarat, Scheduled Caste (SC) category status, belonging to an Antyodaya Anna Yojana (AAY) family, and adherence to the annual family income limit of ₹3,00,000/-. Following this initial screening, the provided documents, such as caste and income certificates, Aadhaar, and residence proof, undergo verification. The commitment to providing two guarantors is also assessed. Final approval is typically granted by a selection committee or authorized officials from the Dr. Ambedkar Antyodaya Development Corporation (DAADC), based on the completeness and accuracy of the application and the alignment with the scheme's objectives for promoting self-employment among the target beneficiaries.
Application Process
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Visit Official Website
Navigate to the DAADC official portal for the scheme.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 3
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 4
Submit on the official portal
Use the official application link and verify all details before final submission.
- 5
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the maximum loan amount provided under this scheme?
Beneficiaries can avail a loan of up to ₹1,25,000/- (Rupees One Lakh Twenty-Five Thousand Only) under the "Loan for Small Businesses" scheme.
What are the interest rate and repayment tenure for the loan?
The loan is provided at a concessional interest rate of 4% per annum. The repayment period is 60 months, which translates to 5 years.
Who is eligible to apply for this loan?
Eligible applicants must be residents of Gujarat, belong to the Scheduled Caste (SC) category, be part of an Antyodaya Anna Yojana (AAY) family, and have an annual family income not exceeding ₹3,00,000/-. They must also intend to start or expand a small business and be able to provide two guarantors.
Is there any beneficiary contribution required for the loan?
No, the scheme specifies a 100% State Government Contribution, meaning no beneficiary share is required from the applicant.
What documents are typically required for the application?
Applicants will generally need to upload scanned copies of their Caste certificate, Income certificate, Aadhaar card, Passport-size photo, Bank passbook (first page), and Residence proof.
How can I track the status of my application after submission?
Upon successful submission of the online application, applicants will receive an Application ID/Reference Number. This number should be saved or printed for future reference and to track the status of your application.
