Dattopant Thengadi Artisan Interest Subsidy Scheme: ₹1L Loan for Artisans

The Dattopant Thengadi Artisan Interest Subsidy Scheme is administered by the Industries and Mines Department of the Government of Gujarat. It is aimed at traditional craftspeople in both urban and rural parts of the state who need affordable finance to buy machinery, tools and raw materials, or to fund working capital for a new or existing artisan business.

The scheme blends a bank loan with two government subsidies. A registered artisan can access credit of up to ₹1,00,000, receive a margin money subsidy of 20% or 25% once the loan is disbursed, and claim a 7% interest subsidy paid half-yearly for up to three years. Together these bring down the real cost of borrowing and keep monthly repayments within reach.

Beyond the money, the programme is a way of protecting Gujarat's handloom and handicraft traditions. By helping craftspeople upgrade their equipment, raise output and compete better in the market, it aims to strengthen incomes at the grassroots and keep skilled craft work economically viable. Applications are routed through the District Industries Centre of the applicant's own district, which keeps the process local and accessible.

• Loan of up to ₹1,00,000 for machinery, tools or working capital
• Margin Money Subsidy of 20% for General Category (Male) and 25% for Reserved Categories, women and PwD applicants
• 7% interest subsidy credited half-yearly for up to three years
• Repayment window of 12 to 36 monthly instalments, set by the bank
• Open to Indext-C registered artisans with handloom or handicraft skills in Gujarat
• Rolling applications with no fixed deadline — submit through your district DIC

Eligibility here revolves around your standing as a registered artisan in Gujarat.

• You must be above 18 years of age.
• You must have demonstrable skill in a Handloom or Handicraft craft.
• You must be registered as an artisan with Indext-C of the Cottage and Rural Industries Department, which covers applicants from both urban and rural areas of Gujarat.
• You need either an Identity card issued by the Development Commissioner (Handloom / Handicraft / Indext-C) or a Provisional Certificate from the General Manager, District Industries Centre.

In short, the qualifying test is artisan registration plus proven craft skill — there are no separate turnover or business-structure conditions stated in the scheme norms.

Dattopant Thengadi Artisan Interest Subsidy Scheme: ₹1L Loan for Artisans is open to startups at any stage. It is open to startups registered anywhere in India.

Dattopant Thengadi Artisan Interest Subsidy Scheme: ₹1L Loan for Artisans 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.

The support package has three separate parts.

• Credit of up to ₹1,00,000 — a bank loan for tools, machinery, equipment or raw materials needed to start or expand an artisan business.
• Margin Money Subsidy — 20% of the loan amount for General Category (Male) applicants and 25% for Reserved Categories, Women and Persons with Disabilities (40% or more disability). It is a one-time payment made after the loan is disbursed and credited straight to your bank account. It is calculated on loans of up to ₹1,00,000 spread over a three-year period.
• 7% Interest Subsidy — credited to your account once every six months, for up to three years, which lowers the effective rate you pay on the borrowing.

Repayment runs from at least one year (12 monthly instalments) to a maximum of three years (36 monthly instalments), as fixed by the sanctioning bank. Subsidies are released through RTGS or e-payment, so accurate bank details — account number, IFSC, TAN number and Aadhaar number — are essential for receiving them on time.

Dattopant Thengadi Artisan Interest Subsidy Scheme: ₹1L Loan for Artisans is offered by Industries and Mines Department, Government of Gujarat, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.

Assessment happens in distinct layers.

• District Industries Centre screening: the DIC first confirms that you qualify as an artisan and that your application is complete before it moves ahead.
• Bank appraisal: complete applications are forwarded to participating financial institutions — nationalized banks, regional rural banks, co-operative banks, public sector banks and private banks. Each lender judges creditworthiness and business viability under its own internal lending norms before sanctioning the loan.
• Verification for subsidies: the bank certifies that instalments are being paid regularly, that the borrower is not a defaulter, and that the loan was used for the approved purpose. The implementing agency may also conduct site visits to confirm that the machinery, equipment or raw materials were actually purchased.

Before you apply to Dattopant Thengadi Artisan Interest Subsidy Scheme: ₹1L Loan for Artisans, 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.

Dattopant Thengadi Artisan Interest Subsidy Scheme: ₹1L Loan for Artisans is best suited for startups in India seeking non-dilutive funding of ₹1L. If that describes your startup, review the eligibility criteria above before applying.