Dattopant Thengadi Artisan Interest Subsidy Scheme
By Industries and Mines Department, Government of Gujarat
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Quick Answer
Registered artisans in Gujarat can get a credit limit of up to ₹1 lakh for machinery or working capital, plus margin money and a 7% interest subsidy.
About this subsidy
This Government of Gujarat scheme is for artisans in urban and rural Gujarat who work in handloom or handicraft. It gives a credit limit of up to ₹1,00,000 to buy machinery, raw materials, equipment or tools.
On top of the loan, you get a margin money subsidy of 20% if you are in the General Category (male), or 25% if you are in a Reserved Category, a woman or a person with disability. It is credited to your bank account after the loan is disbursed, for a maximum loan of ₹1,00,000 over three years.
You also get a 7% interest subsidy, credited half-yearly for up to three years.
You must be over 18 and hold an Identity card from the Development Commissioner Handloom/Handicraft/Indext-C, or a Provisional Certificate from the General Manager, District Industries Centre. You must also be registered as an artisan with the Indext-C of the Cottage and Rural Industries Department. Applications go through District Industries Centres.
Eligibility
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Subsidy providers
The Industries & Mines Department (IMD) of the Government of Gujarat is the state department that makes industrial and MSME policy. Its executive arm, the Industries Commissionerate, implements those policies, both the state's and the central government's, and runs the Startup…
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District Intermediate Cooperative Development Committee, Madhya PradeshMadhya Pradesh · India
Benefits & Funding
- Amount
- Up to ₹1L
What You Get
This scheme provides substantial financial assistance to artisans, including a credit limit of up to ₹1,00,000 for acquiring machinery, raw materials, equipment, or tools necessary for business development. Beyond the loan, beneficiaries receive a Margin Money Subsidy of 20% for General Category (Male) and 25% for Reserved Categories, Women, and Persons with Disabilities. This subsidy is credited directly to the beneficiary's bank account after loan disbursement and is available for a maximum loan of ₹1,00,000 over three years. Furthermore, an Interest Subsidy of 7% is provided, credited half-yearly to the beneficiary's account for a maximum period of three years, significantly reducing the effective cost of borrowing. These benefits collectively ensure that artisans have the necessary capital to expand their operations, innovate, and maintain their financial stability.
- Disbursement
- Tranched
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection process primarily involves an initial screening by the District Industries Centre (DIC) to ensure eligibility as an artisan and completeness of the application. Once the application is deemed complete, it is forwarded to participating financial institutions (Nationalized Banks, Regional Rural Banks, Co-operative Banks, Public Sector Banks, and Private Banks) for loan sanction. These banks will evaluate the applicant's creditworthiness and business viability according to their internal lending norms. For the disbursement of subsidies, the banks are responsible for certifying that the artisan regularly pays instalments, is not a defaulter, and has utilized the loan amount for its intended purpose, which may involve site visits by the implementing agency to verify the purchase of machinery, equipment, or raw materials.
Application Process
- 1
Download Form
Applicant downloads the prescribed application form from the official website.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
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.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
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
Who is considered an artisan for this scheme?
An artisan is defined as a workman registered with the Indext-C of the Cottage and Rural Industries Department, possessing skills in Handloom or Handicraft art, and holding an Identity card issued by the Development Commissioner Handloom/Handicraft/Indext-C or a Provisional Certificate from the General Manager, District Industries Centre.
What can the financial assistance be used for?
The financial assistance, including the loan and subsidies, can be used to purchase raw materials, equipment, tools, and machinery for the development of an existing or new artisan business. It is crucial that the loan is used strictly for its approved purpose.
How is the Margin Money Subsidy calculated and disbursed?
The Margin Money Subsidy is 20% of the loan amount for General Category (Male) beneficiaries and 25% for Reserved Category, Women, and physically handicapped beneficiaries (40% or more disability). It is disbursed one-time after the loan is issued and credited directly to the artisan's bank account. This subsidy is available on a maximum loan of up to ₹1,00,000 during a period of three years.
How does the Interest Subsidy work?
An interest subsidy of 7% is provided on the loan amount. This subsidy is credited to the beneficiary's account on a half-yearly basis for a maximum period of three years, helping to reduce the overall interest burden on the artisan's loan.
What is the repayment period for the loan?
The beneficiary is required to repay the loan, along with interest, regularly within a period of a minimum of one year (12 monthly instalments) and a maximum of three years (36 monthly instalments), as determined by the sanctioning bank.
Can I apply for this scheme if I don't have an Identity Card from the Development Commissioner?
Yes, if you do not possess an Identity Card from the Development Commissioner Handloom/Handicraft/Indext-C, you may still be eligible if you hold a Provisional Certificate as an artisan issued by the General Manager, District Industries Centre.
Sources
Data on this page is compiled from official program and provider references.
