Micro Finance Scheme (GNDTDC): ₹1.25L Loan at 5% for Gujarat Tribes — Frequently Asked Questions

It is a concessional loan scheme for self-employment, run by the Gujarat Nomadic and Denotified Tribes Development Corporation (GNDTDC) under the Government of Gujarat's Social Justice and Empowerment Department. It exists to help people from Nomadic and Denotified Tribe communities in the state set up or grow a small business using affordable credit.

You can borrow up to ₹1,25,000. The loan carries interest at 5% per annum, and the entire amount along with interest is repaid through 48 equal monthly instalments.

It is neither a grant nor an equity investment — it is a loan. You receive the money, use it for your business, and repay it in instalments with interest. No ownership stake in your venture is transferred to anyone, which means the scheme does not dilute your control over the business.

Interest is charged at a concessional 5% per annum. Repayment runs over 48 months, made up of equal monthly instalments that already include the interest component.

You must be a Gujarat resident belonging to a Nomadic Tribe or a Denotified Tribe. Your family's annual income should not be more than ₹3,00,000, and your age must fall between 21 and 50 years on the date you apply. You also need demonstrated experience and technical skill in the trade you are proposing, and you must be able to offer suitable collateral.

Yes. Providing suitable collateral is a stated requirement, and the acceptability of the collateral you offer is one of the things GNDTDC examines while evaluating your application.

The funds are meant for establishing or expanding a small-scale business. Permitted uses include buying equipment, purchasing raw materials, and meeting working capital needs so that day-to-day operations can continue smoothly.

You will need a recent photograph and your signature, each below 15 KB in size, uploaded separately. Along with those, you upload supporting documents in PDF, JPG, JPEG or PNG format — typically proof of residence, your caste certificate, an income certificate, age proof, details of your proposed business, and information about the collateral you are offering.

Applications are submitted online through the GNDTDC portal. On the homepage you open the Micro Finance section and click Apply Now, then fill in your personal, income, caste, bank and past-loan details, upload your photo, signature and documents, review everything, complete the CAPTCHA and submit. There is no closing date — the scheme accepts applications on a rolling basis. Keep the Application ID or reference number you receive, as it is needed to track your application later.

Yes. The application form has a section for declaring any loan you have taken previously, where you provide the date, the amount, how much you have paid, the outstanding balance and the account number. Having borrowed before does not automatically disqualify you, but the details have to be disclosed.

GNDTDC first screens all applications for the core eligibility conditions — residency, community, family income, age and trade experience. Applications that clear that stage are then judged on how viable the proposed business is and whether the offered collateral is suitable. Shortlisted applicants may be asked for further verification or assessment before the loan is finally approved and disbursed.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Micro Finance Scheme (GNDTDC): ₹1.25L Loan at 5% for Gujarat Tribes, though having it can strengthen your application and unlock other benefits.

Micro Finance Scheme (GNDTDC): ₹1.25L Loan at 5% for Gujarat Tribes is offered by Gujarat Nomadic and Denotified Tribes Development Corporation (GNDTDC), a government body. It is provided as non-dilutive funding.