Term Loan Scheme (GMFDC)
By Gujarat Minorities Finance and Development Corporation
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Quick Answer
Term loans at concessional interest from GMFDC for minority community residents of Gujarat who want to start or expand self-employment or a small business.
About this loan
This scheme from the Gujarat Minorities Finance and Development Corporation (GMFDC), under the Social Justice and Empowerment Department, Government of Gujarat, gives term loans to people from minority communities in Gujarat. The loans carry concessional interest rates.
You can use the loan for equipment, raw materials or working capital. It covers agriculture and allied sectors, small-scale businesses, craftsmanship, the transport sector, traditional occupations, and service-based businesses and trades.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Grant providers
Benefits & Funding
- Amount
- ₹1L – ₹20L
- Fund type
- Debt
- Repayment
- Repayable
What You Get
The scheme provides significant financial assistance in the form of term loans, ranging from ₹1,00,000 to ₹20,00,000. These loans are disbursed at highly concessional interest rates, specifically 6% per annum for families with an annual income up to ₹1,20,000, and 8% for male beneficiaries (6% for female beneficiaries) for families with income between ₹1,20,000 and ₹8,00,000. The loan is repayable over a flexible period of five years in 60 equal monthly installments. This funding supports various business activities, including agriculture, animal husbandry, fisheries, technical and skilled self-employment, service-oriented businesses, handicrafts, and the transport sector, enabling beneficiaries to acquire equipment, raw materials, or secure working capital.
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications are reviewed by the Gujarat Minorities Finance and Development Corporation (GMFDC) based on eligibility criteria, completeness of documentation, and the viability of the proposed business plan. The process likely involves internal assessment of the submitted application and supporting documents.
Application Process
- 1
Register Online
Create a new user account on the GMFDC official website by providing personal details and Aadhar number.
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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 purpose of the Term Loan Scheme (GMFDC)?
The scheme aims to promote self-employment among individuals from minority communities in Gujarat by providing financial assistance at concessional interest rates for various business activities.
What is the maximum loan amount I can avail?
Beneficiaries can avail loans ranging from ₹1,00,000 to ₹20,00,000.
What are the interest rates for these loans?
Interest rates are 6% per annum for families with annual income up to ₹1,20,000 (rural/urban). For families with income between ₹1,20,000 and ₹8,00,000, it's 8% for male beneficiaries and 6% for female beneficiaries.
How long is the repayment period?
The loan amount, including interest, must be repaid in 60 equal installments over five years.
Who is eligible to apply for this scheme?
Applicants must be Gujarat residents, belong to a specified minority community, be between 21 and 45 years old, and meet specific annual family income criteria.
Can I apply if I have previously taken a government loan?
No, the applicant or any family member should not have obtained a loan from GMFDC or any other Central or State Government corporation, institution, or bank.
