6% Interest Subsidy on Loans taken through Banks up to a Limit of Rs.5 Lakh for Self-Employment
By Tribal Development Department, Government of Gujarat
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Quick Answer
A 6% interest subsidy on bank loans up to ₹5 lakh for Scheduled Tribe individuals in tribal areas of Gujarat who start self-employment.
About this subsidy
Scheduled Tribe (ST) individuals in tribal areas of Gujarat who take a bank loan for self-employment get a 6% interest subsidy on loans up to ₹5 lakh. The scheme is run by the Tribal Development Department, Government of Gujarat.
The subsidy lowers the interest you pay, so the loan costs less to repay. To qualify, you must belong to the Scheduled Tribe category, live in a tribal area of Gujarat, and have taken a bank loan for self-employment.
Eligibility
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Subsidy providers
Benefits & Funding
What You Get
Beneficiaries receive a 6% interest subsidy on eligible self-employment loans taken through recognized banks. This significantly reduces the effective interest rate paid by the entrepreneur, making the loan more manageable and sustainable for nascent businesses. The subsidy is applicable on a maximum loan amount of ₹5,00,000, ensuring that small-scale ventures and individual entrepreneurs can access vital capital without excessive financial strain. This financial relief directly supports the growth and stability of self-employment initiatives, fostering economic inclusion and entrepreneurship within Scheduled Tribe communities.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
Collect Application Form
Applicant visits a designated office to obtain a hard copy of the prescribed application form.
You - 2
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How to apply
Four steps from draft to disbursement — one action each.
- 1
Submit on the official portal
Use the official application link and verify all details before final submission.
- 2
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
What is the primary objective of this scheme?
The scheme aims to promote self-employment among Scheduled Tribe (ST) individuals in Gujarat by making business loans more affordable through an interest subsidy.
How does the interest subsidy work?
The scheme provides a 6% subsidy on the interest component of loans taken from banks for self-employment purposes. This means that a portion of the interest you would normally pay will be covered by the government, reducing your overall repayment burden.
What is the maximum loan amount eligible for this subsidy?
The interest subsidy is applicable on self-employment loans up to a maximum limit of ₹5,00,000. Any loan amount exceeding this limit will not be eligible for the 6% interest subsidy.
Who is eligible to apply for this scheme?
To be eligible, applicants must belong to the Scheduled Tribe (ST) category, reside in tribal areas of Gujarat, and have already secured a bank loan specifically for self-employment purposes.
What type of businesses are supported by this scheme?
The scheme broadly supports self-employment purposes. This includes a wide range of micro-enterprises, small businesses, or individual ventures across various sectors, as long as they contribute to the applicant's self-sustenance and economic activity.
What documents are typically required during the application process?
While not explicitly listed, common required documents for such schemes usually include proof of Scheduled Tribe status, residency proof in Gujarat's tribal areas, identity proof (Aadhaar Card), address proof, the bank loan sanction letter, and bank account details related to the self-employment loan.
Sources
Data on this page is compiled from official program and provider references.
