Microcredit Finance Scheme — ₹5L Loans at 6% for Gujarat SC SHGs — Frequently Asked Questions

Eligible beneficiaries can receive a microloan of up to ₹5,00,000. The exact amount depends on the loan requirement you state in your application and the business activity you plan to take up. The money is intended for starting or growing a small-scale venture.

Interest is charged at 6% per annum, which is well below the cost of a typical unsecured commercial loan. The repayment period is 36 months, or three years, and the indicative monthly instalment comes to about ₹1,445.

You must be of Scheduled Caste origin, belong to an Antyodaya (AAY) family, live in Gujarat, and have an annual family income of ₹3,00,000 or less. You can apply as a self-help group of unemployed persons, or individually if you have a valid business proposal. Members of registered self-help groups are eligible, and individuals outside a group can also apply provided the business intent is clear.

No. You do not need anyone to stand guarantor for this loan, and no third-party surety is sought. That is one of the scheme's main advantages, since it opens the door to borrowers who cannot arrange a traditional guarantee.

Only a small share. The state government covers 95% of the sanctioned loan and the beneficiary's share is 5%. For example, on a ₹50,000 loan the state contributes ₹47,500 and the beneficiary pays ₹2,500.

No. This is a debt scheme, not an equity investment. You take a loan and repay it with interest at 6% per annum across 36 months; the corporation does not take any stake in your venture.

There is no fixed deadline. The scheme runs on a rolling basis and applications are accepted throughout the year, so you can apply whenever your business plan and documents are ready.

Applications are submitted online through the official Dr. Ambedkar Antyodaya Development Corporation portal at daadconline.gujarat.gov.in. Click "Apply Now" in the top menu, choose the relevant loan scheme, and enter the loan amount you are seeking. Then complete the application form with your personal, address, income, loan requirement and bank account details, check everything using the preview option, and submit. Save or print the Application ID you receive, as it is needed to track your application. The scheme is also listed on the Social Justice and Empowerment Department's schemes page.

You will need scanned copies of your caste certificate, income certificate, Aadhaar card, a recent passport-size photograph, the first page of your bank passbook, and proof of residence.

DAADC verifies the application after submission. It checks that the eligibility criteria are met and that all required documents are attached, and scrutinises the caste, income and residency details for authenticity. Approval and the disbursement of the microloan happen only once this verification succeeds and the scheme guidelines are fully complied with.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Microcredit Finance Scheme — ₹5L Loans at 6% for Gujarat SC SHGs, though having it can strengthen your application and unlock other benefits.

Microcredit Finance Scheme — ₹5L Loans at 6% for Gujarat SC SHGs 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.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.