6% Interest Subsidy on Gujarat Bank Loans up to ₹5 Lakh for ST Self-Employment — Frequently Asked Questions

It is not a lump-sum payout. The department covers 6% of the interest on your self-employment bank loan, and that subsidy is calculated against a loan of up to ₹5,00,000. In practice your interest cost falls by six percentage points on the covered portion of the loan.

No. This is a rolling scheme that stays open, so there is no last date to race against. You can submit your paperwork at any point during office hours at the designated offices.

You must belong to the Scheduled Tribe (ST) category, be a resident of a tribal area in Gujarat, and have already availed a bank loan for self-employment purposes. All three conditions apply together.

Yes. Having availed a bank loan for self-employment is one of the eligibility conditions. A business plan or an idea on its own does not qualify — the loan has to be in place.

Neither. This is a subsidy, so it is non-dilutive: you do not hand over any stake in your venture, and the subsidised amount is not paid back.

The information available for this scheme does not list DPIIT recognition or MSME registration as a requirement. Eligibility rests on Scheduled Tribe status, residence in a tribal area of Gujarat, and holding a bank loan for self-employment.

You must attach self-attested copies of your ST certificate, proof that you reside in a tribal area of Gujarat, and your bank loan sanction letter, along with the fully completed and signed application form.

Collect the prescribed hard-copy form from the office of the Project Administrator, Gujarat Tribal Development Corporation in Gandhinagar, or from any tribal district office. Complete it, attach your documents, and submit it to the office of the Tribal District Sponsorship Administrator. Ask for a receipt or acknowledgement and check that it carries the submission date, time and your application's unique identification number.

The subsidy is capped at a loan of ₹5,00,000. Any amount you borrowed above that limit is not eligible for the 6% interest subsidy.

The scheme is framed around self-employment rather than any named industry, so what matters is the purpose of the bank loan rather than the sector it belongs to. No list of preferred or restricted sectors is given in the scheme details.

6% Interest Subsidy on Gujarat Bank Loans up to ₹5 Lakh for ST Self-Employment is offered by Tribal Development 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.