Small Scale Lending Scheme — ₹1.25L Microcredit at 5% (Gujarat) — Frequently Asked Questions
Answers to the questions founders most often ask about Small Scale Lending Scheme — ₹1.25L Microcredit at 5% (Gujarat) — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
How much money can I borrow under the Small Scale Lending Scheme (Microfinance)?
The loan ceiling is ₹1,25,000. It is extended as microcredit for setting up or growing a small business, and is repaid by the borrower over time.
What interest rate do I have to pay?
The loan carries a subsidised rate of 5% per annum, which keeps the repayment burden considerably lower than a typical commercial loan.
Who is eligible to apply?
You need to meet three conditions together: you must belong to the Rabari or Bharwad caste, fall within the 21 to 45 year age bracket, and have an annual income of ₹3,00,000 or less.
Is there a last date to apply?
No. Applications are accepted on a rolling basis, so the scheme stays open throughout the year and there is no fixed closing date to work towards.
How much do I have to invest myself?
The loan finances 95% of the total project cost. You contribute the remaining 5%, which is a deliberately small share meant to keep the entry barrier low.
Does the scheme take equity or a stake in my business?
No. This is a lending scheme, so the money comes as debt that you repay at the stated interest rate. No ownership or shareholding in your enterprise is given up.
What documents are needed with the application?
You will need to upload identity proof, address proof, a caste certificate and an income certificate. A project proposal may also be required, and all documents must match the specified format and size limits.
How do I submit an application?
Applications are filed online through the DAAD portal at https://daadconline.gujarat.gov.in/. Open the 'Details of the Scheme' section, click 'Apply Now' for this scheme, complete all mandatory fields, upload your documents, finish the Captcha check and submit. A unique Confirmation Number is generated — save it, since you will need it to check status or make later changes.
Can I get a copy of my submitted application?
Yes. Go back to the portal and use 'Print Application', entering the scheme name, your date of birth and the Confirmation Number to retrieve and print the form for your records.
Which kind of businesses can be funded?
The scheme is meant for small entrepreneurs launching or expanding micro-enterprises. It does not restrict itself to any single industry, leaving it open to a broad range of small-scale ventures.
Who runs this scheme?
It is a Government of Gujarat initiative of the Social Justice and Empowerment Department, with Gujarat Gopalak Vikas Nigam handling implementation, outreach and disbursement.
Is DPIIT recognition required for Small Scale Lending Scheme — ₹1.25L Microcredit at 5% (Gujarat)?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Small Scale Lending Scheme — ₹1.25L Microcredit at 5% (Gujarat), though having it can strengthen your application and unlock other benefits.
How do I apply for Small Scale Lending Scheme — ₹1.25L Microcredit at 5% (Gujarat)?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
← Back to Small Scale Lending Scheme — ₹1.25L Microcredit at 5% (Gujarat) overview