Direct Finance Scheme (NSFDC/GSCDC) — 1-5% Loans for SC Entrepreneurs — Frequently Asked Questions

It gives you a loan. The scheme lends money to Scheduled Caste individuals in Gujarat who want to start a self-employment venture, and it charges interest at a concessional 1% to 5% per annum instead of a commercial rate. It is a credit facility, not a grant or a subsidy payout.

The scheme does not publish one fixed loan amount — the figure varies. No uniform ceiling is stated in the scheme details either, so the amount is not something you can assume in advance. Applicants should confirm the current lending limits with GSCDC when they apply.

Interest is charged at a subsidised rate that ranges from 1% to 5% per annum. That is the headline benefit of the scheme, since the cost of borrowing is far lower than what a bank or non-banking lender would normally charge.

You need to be a Gujarat resident, belong to the Scheduled Caste community, be unemployed, and have an annual family income that does not cross ₹3,00,000. All four conditions apply together.

No. The scheme has a rolling intake — applications are accepted all year round, so there is no deadline to beat and no annual window that closes. You can apply whenever you have your documents ready.

No. This is a debt product, which means the funding is non-dilutive. The scheme does not take shares, an equity stake or any ownership in the venture you set up. You repay the loan with interest and the business remains entirely yours.

Neither is listed as a requirement for this scheme. The eligibility conditions are about your residency, community, employment status and family income rather than any startup or enterprise registration.

The screening process verifies a caste certificate, income proof and residency details, so these are the documents to keep ready. You will also complete the online application form and upload the required documents on the GSCDC portal during submission.

The scheme details do not explicitly mention a collateral requirement. Since the position is not stated, applicants should check the detailed guidelines or speak to GSCDC directly about what security, if any, is asked for.

Apply online through the GSCDC portal. Register as a new user with your email ID, mobile number and password, then log in using your user ID, password and the captcha code. Once you are logged in, the schemes applicable to your caste are displayed — select the Direct Finance Scheme, fill in the detailed application form, upload your documents and save it. Saving generates an application number for future reference, and you can print the submitted form for your records. The scheme listing is also available at https://mariyojana.gujarat.gov.in/Schemeatoz.aspx.

Direct Finance Scheme (NSFDC/GSCDC) — 1-5% Loans for SC Entrepreneurs is offered by Social Justice and Empowerment Department, Government of Gujarat, a government body. It is provided as non-dilutive funding.