Gujarat Small Business Scheme — ₹2 Lakh Loan at 6% for Rabari & Bharwad
A Government of Gujarat loan scheme run by Gujarat Gopalak Vikas Nigam that offers Rabari and Bharwad entrepreneurs up to ₹2 lakh at 6% annual interest, financing 95% of their project cost.
- Funding amount
- ₹20L (debt / loan)
- Funding type
- Debt / Loan
- Provider
- Social Justice and Empowerment Department, Government of Gujarat (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Small Business Scheme is a state-backed credit programme implemented by Gujarat Gopalak Vikas Nigam, which functions under the Social Justice and Empowerment Department of the Government of Gujarat. Its purpose is to build self-employment among members of the Rabari and Bharwad communities, both of which appear in Gujarat's Socially and Educationally Backward Classes (SEBC) list.
Support under the scheme comes as an individual loan, so the amount has to be repaid — but the terms are deliberately soft. Interest is fixed at 6% per annum, the ceiling on a single loan is ₹2 lakh, and the loan can cover as much as 95% of the total project cost, leaving the entrepreneur to arrange only the remaining 5%.
The scheme is aimed at micro-enterprises. Grocery shops, dairy parlours, animal food outlets and mobile or computer repair shops are the kinds of ventures named in the scheme, and other small business ideas are also covered. For first-generation entrepreneurs in these communities, it works as an accessible entry point into business ownership rather than a hand-out.
There is no closing date to watch. The scheme stays open through the year and applications are submitted online through the Gujarat Gopalak Development Corporation portal.
Highlights
- Loans of up to ₹2 lakh per applicant
- Interest charged at 6% per annum
- Finances up to 95% of project cost; 5% own contribution
- Open to Rabari and Bharwad (SEBC) applicants aged 21 to 45 with family income up to ₹3 lakh
- Supports grocery shops, dairy parlours, animal food outlets and repair shops
- No fixed deadline — applications stay open through the year on the GGVN portal
Who can apply
Eligibility is defined by community, age and family income rather than by the type of company you keep.
- Community: The applicant must belong to the Rabari or Bharwad caste, both of which fall under Gujarat's Socially and Educationally Backward Classes (SEBC) category.
- Age: The applicant's age must be between 21 and 45 years.
- Family income: Total annual family income must not exceed ₹3,00,000.
- Geography: The scheme is operated by the Government of Gujarat and covers applicants from these communities across the state.
No company registration, DPIIT recognition or MSME certificate is listed among the conditions — the qualifying test rests on the applicant's caste, age and household income.
Gujarat Small Business Scheme — ₹2 Lakh Loan at 6% for Rabari & Bharwad is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
Gujarat Small Business Scheme — ₹2 Lakh Loan at 6% for Rabari & Bharwad 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.
What the funding covers
The scheme's support is delivered as a repayable individual loan rather than a grant or a subsidy.
- Maximum loan: Up to ₹2,00,000 per applicant.
- Interest rate: A concessional 6% per annum, which keeps the cost of borrowing low for a first-time business owner.
- Project cost coverage: The loan can meet up to 95% of the total project cost, so the beneficiary puts in the balance of 5% from their own resources.
- No equity given away: Because the funding is debt, the scheme takes no ownership stake in the business.
- What it makes possible: Setting up and running a small venture such as a grocery shop, dairy parlour, animal food outlet or mobile and computer repair shop.
About the provider
Gujarat Small Business Scheme — ₹2 Lakh Loan at 6% for Rabari & Bharwad is offered by Social Justice and Empowerment Department, Government of Gujarat, a government body. As a government-backed debt / loan, it is publicly funded and open to eligible startups across India.
Documents you’ll need
Before you apply to Gujarat Small Business Scheme — ₹2 Lakh Loan at 6% for Rabari & Bharwad, 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.
Who this is best for
Gujarat Small Business Scheme — ₹2 Lakh Loan at 6% for Rabari & Bharwad is best suited for startups in India seeking non-dilutive funding of ₹20L. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
How much money can I get under the Small Business Scheme?
An individual applicant can borrow up to ₹2,00,000. The scheme also limits its support to 95% of the project cost, so the sanctioned figure is the lower of the two — a project costing ₹2 lakh or more still draws a maximum of ₹2 lakh, while a cheaper project is funded to 95% of its cost.
Is this a grant or a loan, and what does the borrowing cost?
It is a loan. The money is given as individual debt that has to be repaid, not as a grant or subsidy. Interest is charged at 6% per annum, which is the rate fixed under the scheme. Because the funding is debt rather than equity, Gujarat Gopalak Vikas Nigam does not take any ownership stake in your business.
Who is eligible to apply for this scheme?
Three conditions apply. The applicant must belong to the Rabari or Bharwad caste, both of which are part of Gujarat's Socially and Educationally Backward Classes (SEBC). Their age must be between 21 and 45 years. And their total annual family income must not be more than ₹3,00,000.
Do I need DPIIT recognition or MSME registration to apply?
No such requirement is listed for this scheme. Eligibility is decided entirely on community, age and annual family income — the applicant must be from the Rabari or Bharwad community, aged 21 to 45, with family income of ₹3,00,000 or less per year.
What kind of business can I set up with the loan?
The scheme is meant for micro-enterprises. Grocery shops, dairy parlours, animal food outlets and mobile or computer repair shops are the examples named, and the list is illustrative rather than exhaustive, so other small business ideas are also supported.
How much of my project cost will the scheme fund?
The loan can cover up to 95% of the total project cost. You are expected to bring in the remaining 5% yourself. That means the scheme carries almost the entire cost of getting a small venture off the ground, within the ₹2 lakh loan ceiling.
What details and documents are needed while applying?
The online form asks for your unit cost and the loan amount you need, along with Aadhaar, ration card and voter ID details, your full name and address, date of birth and age, caste and subcaste, contact details and marital status. You also enter your income certificate particulars (number, issue date, issuing officer and total annual family income), your education qualification, and details of any earlier loans including amounts paid and outstanding. Bank information is required as well — account number, bank and branch names, account type, MICR code and IFSC code. There are also declarations about physical disability and about any family member holding a government or private job.
Is there any deadline to apply?
No. The scheme runs on a rolling basis and stays open throughout the year, so there is no last date to beat. You can submit your application whenever your business plan and paperwork are ready.
How do I apply for the Small Business Scheme?
Applications are made online. Go to the Gujarat Gopalak Development Corporation website at ggdconline.gujarat.gov.in, locate the Small Business Scheme and click Apply Now, which takes you to the form at gbcdconline.gujarat.gov.in/SchemeSmallBusiness/AddEdit. Fill in your project and personal details, review everything using the preview option, complete the CAPTCHA and submit. Scheme information is also published on the Social Justice and Empowerment Department page at sje.gujarat.gov.in/ggvn/scheme/nana-dhandha-scheme.
How can I check the status of my application afterwards?
Once you submit, save or print the Application ID or reference number and acknowledgement you receive. To check progress, return to the Gujarat Gopalak Development Corporation website, click on Know App Status, enter the scheme name, your application number and your date of birth, fill in the CAPTCHA and submit to see the current status.
Does Gujarat Small Business Scheme — ₹2 Lakh Loan at 6% for Rabari & Bharwad take equity?
No. Gujarat Small Business Scheme — ₹2 Lakh Loan at 6% for Rabari & Bharwad is debt / loan and is non-dilutive — the provider does not take an equity stake in your startup.
Who offers Gujarat Small Business Scheme — ₹2 Lakh Loan at 6% for Rabari & Bharwad?
Gujarat Small Business Scheme — ₹2 Lakh Loan at 6% for Rabari & Bharwad is offered by Social Justice and Empowerment Department, Government of Gujarat, a government body. It is provided as non-dilutive funding.
More funding from Social Justice and Empowerment Department, Government of Gujarat
Social Justice and Empowerment Department, Government of Gujarat runs 6 other programs listed on startupfunds — compare them before you decide where to apply.
Alternatives to Gujarat Small Business Scheme — ₹2 Lakh Loan at 6% for Rabari & Bharwad
Not sure Gujarat Small Business Scheme — ₹2 Lakh Loan at 6% for Rabari & Bharwad is the right fit, or already applied? These are other debt open to Indian startups that founders shortlist alongside it.
Questions from founders
Ask anything about eligibility, documents or the process — answered by the community.
No questions yet — be the first to ask.