DAADC Small Business Loan — Up to ₹1.25 Lakh at 4% for Gujarat SC Families
DAADC, Government of Gujarat, provides loans up to ₹1,25,000 at 4% annual interest to Scheduled Caste individuals from Antyodaya Anna Yojana families who want to start or grow a small business.
- Funding amount
- ₹1.3L (debt / loan)
- Funding type
- Debt / Loan
- Provider
- Development Corporation for Rabari/Bharwad and Allied Castes, Government of Gujarat (DAADC) (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
DAADC — the Development Corporation for Rabari/Bharwad and Allied Castes under the Government of Gujarat — operates this scheme to help Scheduled Caste households covered by the Antyodaya Anna Yojana take up self-employment or run their own small venture.
The rationale behind the programme is straightforward. Very low-income families rarely clear the bar that banks set for business credit, so the state steps in with capital at a heavily subsidised rate and asks for nothing by way of borrower contribution. The scheme therefore treats self-employment as a practical route to a stable income, not just an aspiration, and it is intended to benefit both the household and the wider state economy.
Applications are made online and there is no closing date — eligible applicants can submit at any time during the year.
Highlights
- Loan of up to ₹1,25,000 per beneficiary
- Concessional interest of 4% per annum
- Repayment over 60 months, roughly ₹2,302 per month
- Open only to Scheduled Caste families covered by Antyodaya Anna Yojana in Gujarat
- Annual family income must be within ₹3,00,000
- No beneficiary contribution — the state government bears the cost
- Rolling applications with no fixed deadline
Who can apply
The scheme is tightly targeted, so applicants should confirm each condition before applying.
- Domicile: The applicant must be a resident of Gujarat.
- Community: The applicant must belong to the Scheduled Caste (SC) category.
- Household status: The applicant's family must be covered under the Antyodaya Anna Yojana (AAY).
- Income ceiling: Annual family income must not exceed ₹3,00,000.
- Purpose: The applicant should intend to set up or expand a small business or occupation.
- Guarantors: Two guarantors must be provided in support of the application.
All of these conditions are screened during appraisal, so evidence such as a caste certificate and an income certificate is essential.
DAADC Small Business Loan — Up to ₹1.25 Lakh at 4% for Gujarat SC Families is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
DAADC Small Business Loan — Up to ₹1.25 Lakh at 4% for Gujarat SC Families accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
The support takes the form of a loan of up to ₹1,25,000 carrying interest of only 4% per annum.
- The scheme is fully funded by the state government, so no beneficiary contribution is required from the applicant.
- Repayment is spread over 60 months (5 years).
- The indicative monthly instalment comes to approximately ₹2,302, which keeps the repayment load light for a low-income household.
The capital is meant to be used for a new small business or occupation, or to strengthen one that is already running, helping the borrower move towards self-reliance and economic upliftment.
About the provider
DAADC Small Business Loan — Up to ₹1.25 Lakh at 4% for Gujarat SC Families is offered by Development Corporation for Rabari/Bharwad and Allied Castes, Government of Gujarat (DAADC), a government body. As a government-backed debt / loan, it is publicly funded and open to eligible startups across India.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
Applications move through three broad stages:
- Eligibility screening: Every submission is checked against the core criteria — Gujarat residency, Scheduled Caste status, membership of an Antyodaya Anna Yojana family, and an annual family income within the ₹3,00,000 limit.
- Document verification: The supporting papers (caste certificate, income certificate, Aadhaar, bank passbook, residence proof and photograph) are examined for authenticity, and the applicant's ability to furnish two guarantors is assessed.
- Final approval: A selection committee or authorised officials of DAADC grant approval after weighing how complete and accurate the application is and how well the proposal advances the scheme's objective of promoting self-employment among the target group.
Documents you’ll need
Before you apply to DAADC Small Business Loan — Up to ₹1.25 Lakh at 4% for Gujarat SC Families, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Who this is best for
DAADC Small Business Loan — Up to ₹1.25 Lakh at 4% for Gujarat SC Families is best suited for startups in India seeking non-dilutive funding of ₹1.3L. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
How much can I borrow under this scheme?
The maximum loan amount is ₹1,25,000. You can request any figure within that ceiling, and the amount you enter in the application form should reflect what your business or occupation actually needs.
What interest rate applies, and how long do I get to repay?
Interest is charged at a concessional 4% per annum. The loan is repayable across 60 months (5 years), which works out to an approximate monthly instalment of ₹2,302.
Who is eligible for this loan?
You must be a resident of Gujarat, belong to the Scheduled Caste category, come from a family covered under the Antyodaya Anna Yojana, and have an annual family income of no more than ₹3,00,000. You also need to intend to start or expand a small business or occupation, and you must be able to provide two guarantors.
Does the scheme take equity in my business?
No. This is a debt scheme, not an equity investment — you repay the loan with interest over the agreed tenure and there is no dilution of ownership. It is also not a subsidy, since the principal is returned.
Do I have to put in any money of my own?
No. The scheme is entirely funded by the state government, so there is no beneficiary contribution to arrange. The full amount sanctioned is provided without a matching share from you.
What documents do I need for the application?
You will typically upload a Caste certificate, an Income certificate, an Aadhaar card, a recent passport-size photograph, the first page of your bank passbook and proof of residence. Scans should be clear and legible, since these papers are verified during appraisal.
Is there a deadline to apply?
No. Applications are accepted on a rolling basis and the scheme stays open, so you can submit whenever your paperwork is ready. There is no annual cut-off date to race against.
How do I apply for the loan?
Applications are made online through the official portal at https://daadconline.gujarat.gov.in/. Choose the "Apply Now" option, select the "Loan for Small Businesses" scheme from the list, indicate your loan category and required amount, complete the personal, address, income and bank details in the form, upload your documents, preview everything and submit.
Will I get any acknowledgement after submitting?
Yes. Once the form is submitted successfully, the system generates an Application ID or reference number. Save or print it — you will need it to track the status of your application later. You can also reach the department through its portal at https://sje.gujarat.gov.in/gapb/home?lang=English.
Can I use the loan to expand a business I already run?
Yes. The scheme covers both new ventures and existing self-employment activities, so you can apply to expand a small business or occupation as well as to start one.
Is DPIIT recognition required for DAADC Small Business Loan — Up to ₹1.25 Lakh at 4% for Gujarat SC Families?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for DAADC Small Business Loan — Up to ₹1.25 Lakh at 4% for Gujarat SC Families, though having it can strengthen your application and unlock other benefits.
Who offers DAADC Small Business Loan — Up to ₹1.25 Lakh at 4% for Gujarat SC Families?
DAADC Small Business Loan — Up to ₹1.25 Lakh at 4% for Gujarat SC Families is offered by Development Corporation for Rabari/Bharwad and Allied Castes, Government of Gujarat (DAADC), a government body. It is provided as non-dilutive funding.
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