Direct Loan Scheme Karnataka — ₹1 Lakh for SC Leather Artisans

The Direct Loan Scheme is a Karnataka government funding route built for leather artisans from Scheduled Caste communities who want to set up a small enterprise or grow one they already run. It is implemented by the Karnataka State Leather Industries Development Corporation, known as LIDKAR, which functions under the state's Department of Social Welfare.

The scheme addresses a specific gap. Leather workers from the notified Scheduled Caste sub-castes often have the craft skill but not the working capital to turn it into a steady income, and unemployment within this group is the problem the programme is designed to tackle. Instead of being a pure grant or a pure loan, it blends the two: part of the money is a subsidy the recipient never has to pay back, and the remainder is low-interest debt repaid over two years.

Support is capped at ₹1,00,000 per applicant, an amount sized to cover the entire unit cost of a small-scale business. Applications are made online through the Seva Sindhu portal, and the scheme has no fixed closing date — it stays open through the year, so an eligible artisan can apply whenever they are ready.

The programme exists to build entrepreneurship and economic self-reliance among a targeted group in Karnataka, helping beneficiaries move from unemployment into running their own venture.

• Up to ₹1,00,000 in assistance per eligible artisan
• Split 50:50 between a non-repayable subsidy and a loan
• Loan carries 4% interest and is repaid across 24 equal instalments
• Open to Scheduled Caste leather artisans in Karnataka aged 18 and above
• Family income must stay under ₹30,000 (rural) or ₹25,000 (urban)
• Rolling scheme — applications accepted through the year on Seva Sindhu

The scheme defines eligibility narrowly, so it is worth checking every condition before you file an application.

• Trade: You must be a leather artisan.
• Community: You must belong to one of the notified Scheduled Caste sub-castes covered by the scheme — Arundathiyar, Chammadiya, Chamar, Chambar, Chamagar, Madar, Madig, Madiga, Mini Madig, Jambavalu, Haralayya, Machigar, Mochigar, Mochi, Muchi, Telugu Mochi, Kamaati Mocha, Rohidas, Dhor, Kakkayya, Kankayya, Samagara, Samagar, Aadhi Anddra, Aadhi Dravida and Aadhi Karnataka.
• Age: The applicant must be at least 18 years old.
• Income ceiling: Your family's yearly income cannot cross ₹30,000 in rural areas or ₹25,000 in urban areas.
• No prior scheme benefits: Neither you nor any family member should have received assistance from other government schemes. Training programmes are the single exception to this rule.
• No government employment: No one in your family should be working for a government or semi-government organisation.

Being unemployed is part of the target profile — the scheme is intended for artisans from these communities who need capital to begin or expand a small business.

Direct Loan Scheme Karnataka — ₹1 Lakh for SC Leather Artisans is open to startups at any stage. It is open to startups registered anywhere in India.

Direct Loan Scheme Karnataka — ₹1 Lakh for SC Leather Artisans 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.

A successful applicant can receive assistance worth up to ₹1,00,000, an amount calculated to meet the full unit cost of the business being set up or expanded.

The money is not given in a single form. It splits evenly:

• A 50% subsidy — this share is non-repayable, so it never has to be returned.
• A 50% loan — this share is repayable in 24 instalments of equal size, carrying an interest rate of 4%.

The combination keeps the cost of capital low for an artisan who would otherwise struggle to borrow. The support is non-dilutive in nature, arriving as subsidy and debt rather than equity, so the beneficiary retains full ownership of the enterprise.

Use of funds is tied to one objective: helping a Scheduled Caste leather artisan who is currently unemployed to open a new small business or extend an existing small-scale one, and thereby build a more stable livelihood.

Direct Loan Scheme Karnataka — ₹1 Lakh for SC Leather Artisans is offered by Karnataka State Leather Industries Development Corporation (LIDKAR), a government body. As a government-backed debt / loan, it is publicly funded and open to eligible startups across India.

Before you apply to Direct Loan Scheme Karnataka — ₹1 Lakh for SC Leather Artisans, 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.

Direct Loan Scheme Karnataka — ₹1 Lakh for SC Leather Artisans is best suited for startups in India seeking non-dilutive funding of ₹1L. If that describes your startup, review the eligibility criteria above before applying.