DAADC Small Business Loan — Up to ₹1.25 Lakh at 4% for Gujarat SC Families — Frequently Asked Questions
Answers to the questions founders most often ask about DAADC Small Business Loan — Up to ₹1.25 Lakh at 4% for Gujarat SC Families — who qualifies, the funding amount, required documents and how the application works.
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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