Dattopant Thengadi Artisan Interest Subsidy Scheme: ₹1L Loan for Artisans — Frequently Asked Questions

You can access a bank loan of up to ₹1,00,000 for tools, machinery, equipment or raw materials. On top of the loan, a Margin Money Subsidy of 20% or 25% is credited to your bank account, and a 7% interest subsidy is paid half-yearly for up to three years. The margin money subsidy is worked out on borrowings of up to ₹1,00,000 over a three-year period.

You must be above 18 years of age and have skill in a handloom or handicraft art. You also need to be registered as an artisan with Indext-C of the Cottage and Rural Industries Department, which applies to craftspeople in both urban and rural areas of Gujarat. In addition, you must hold an Identity card from the Development Commissioner (Handloom / Handicraft / Indext-C) or a Provisional Certificate from the General Manager of your District Industries Centre.

Yes. If you do not hold an Identity card from the Development Commissioner Handloom, Handicraft or Indext-C, you may still qualify by producing a Provisional Certificate as an artisan issued by the General Manager of your District Industries Centre.

No. The scheme runs on a rolling basis and stays open throughout the year, so there is no fixed deadline to beat. You can file your application with the District Industries Centre of your district whenever your papers are ready.

The money is intended for raw materials, equipment, tools and machinery that go into developing an existing or a new artisan business. It must be used strictly for the purpose approved in your application, because the implementing agency may carry out site visits to verify that the machinery, equipment or materials were actually bought.

General Category (Male) beneficiaries receive 20% of the loan amount, while Reserved Category applicants, women and persons with disabilities (40% or more disability) receive 25%. It is a one-time subsidy paid after the loan is disbursed and credited directly into your bank account. It is available on borrowings of up to ₹1,00,000 over three years.

The interest subsidy is credited to your account every six months, for up to three years. Your bank submits the subsidy claim to the Commissioner, Cottage and Rural Industries, or to the District Industries Centre, and once the claim is verified against your repayments and use of the funds, the amount is transferred through RTGS or e-payment.

Yes — the core support is a loan, so you repay the principal along with interest. The repayment period ranges from a minimum of one year (12 monthly instalments) to a maximum of three years (36 monthly instalments), as determined by the bank that sanctions your loan.

No. There is no equity or ownership component. The support consists of a bank loan that you repay, along with two government subsidies — the margin money subsidy and the interest subsidy — which are credited to your bank account.

Download the prescribed form from the official website of the Commissioner of Cottage and Rural Industries and fill in two copies of it. Affix two passport-size photographs on both copies, and attach certified copies of your documents — artisan identity card, age proof, address proof, Aadhaar, bank details including account number and IFSC code, and any relevant business papers. Submit both copies to the District Industries Centre of your district, which acts as the nodal agency. The DIC screens the application and then forwards it to the participating bank for loan sanction and disbursement.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Dattopant Thengadi Artisan Interest Subsidy Scheme: ₹1L Loan for Artisans, though having it can strengthen your application and unlock other benefits.

Dattopant Thengadi Artisan Interest Subsidy Scheme: ₹1L Loan for Artisans is offered by Industries and Mines Department, Government of Gujarat, 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.