Scheme for Small Business Owners of Scheduled Castes to Buy a Place of Business/Shop
By Social Justice and Empowerment Department, Government of Gujarat
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Quick Answer
This Gujarat government scheme provides financial assistance, including a loan up to ₹10 lakhs and a ₹15,000 subsidy, for Scheduled Caste individuals to purchase business premises or shops in urban areas.
About this loan
Launched in 1991 by the Director of Scheduled Caste Welfare, Department of Social Justice & Empowerment, Government of Gujarat, this vital scheme aims to uplift small business owners belonging to the Scheduled Castes (SC) category. It addresses the significant challenge faced by many aspiring entrepreneurs from marginalized communities in acquiring suitable commercial spaces in urban areas. By providing financial assistance, the scheme enables SC individuals to purchase business premises or shops, thereby fostering self-employment, business development, and economic empowerment.
The core of the scheme is to provide access to capital that would otherwise be difficult to obtain through conventional channels. It supports inclusive growth by creating opportunities for SC entrepreneurs to establish and expand their businesses, contributing to local economies and job creation. The scheme not only offers a substantial loan component but also includes a crucial interest subsidy and a direct financial grant, making it a comprehensive support system for its beneficiaries. It encourages sustainable business practices by ensuring the funds are used for their intended purpose and by prioritizing certain eligible groups.
Eligibility
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Grant providers
Provider
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 ₹10.15L
- Fund type
- Debt
- Equity
- Equity-free
- Repayment
- Repayable
What You Get
The scheme offers substantial financial backing, primarily through a loan of up to ₹10 lakhs designed specifically for the purchase of a business premises or shop in urban areas. This loan is crucial for enabling Scheduled Caste individuals to establish or expand their commercial ventures. In addition to the loan, beneficiaries receive a direct subsidy assistance of ₹15,000. A key benefit is the interest subsidy, where the government covers any bank interest exceeding 4% for a period of three years, significantly reducing the financial burden on the beneficiary. This blend of loan and subsidy, coupled with interest support, creates a robust financial package aimed at sustainable business development.
- Disbursement
- Tranched
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
While an explicit 'selection process' beyond application submission is not detailed, the scheme prioritizes certain eligible groups such as educated unemployed, unemployed mill workers, persons with technical & professional experience, and self-employed individuals with qualifications. Applications are likely reviewed against the eligibility criteria, the purpose of the loan, and the provided security. Compliance with land and construction rules for the proposed business premises is also a critical factor during evaluation.
Application Process
- 1
Register
Register as a new user on the e-Samaj Kalyan Portal using Aadhaar and personal details.
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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.
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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
Who is eligible to apply for this scheme?
The scheme is exclusively for individuals belonging to the Scheduled Caste category who are natives of Gujarat. There is no income limit for applicants, and preference is given to educated unemployed, unemployed mill workers, persons with technical/professional experience, and self-employed individuals.
What is the maximum financial assistance available?
Beneficiaries can avail a maximum loan of ₹10 lakhs for purchasing a business premises or shop. Additionally, a direct subsidy of ₹15,000 is provided. The government also covers bank interest above 4% for three years as an interest subsidy.
Is the loan repayable?
Yes, the financial assistance includes a loan component which is repayable. The beneficiary is responsible for bearing interest up to 4%, with the government subsidizing interest above this rate for three years. Loan and interest defaulters will be charged penal interest.
What kind of property can be purchased with this assistance?
The loan assistance is strictly for purchasing a shop or business premises in an urban area. This can include properties allotted on long-term rent by state government bodies, or construction on one's own clear, uncultivated land. The property must comply with land and construction rules.
What is the application process?
Eligible applicants must register and apply online through the e-Samaj Kalyan Portal (esamajkalyan.gujarat.gov.in). The process involves creating a new user account, updating the user profile, filling out the scheme-specific application form with mandatory details, uploading relevant documents, and submitting the application online.
Are there any security requirements for the loan?
Yes, applicants are required to provide security from a maximum of two local persons who possess immovable property equal to the full amount of the loan. Additionally, if purchasing a shop/business premises allotted by a state body, the property itself must be mortgaged to the government until the loan is fully repaid.
Sources
Data on this page is compiled from official program and provider references.
