Direct Loan Scheme Karnataka — ₹1 Lakh for SC Leather Artisans — Frequently Asked Questions
Answers to the questions founders most often ask about Direct Loan Scheme Karnataka — ₹1 Lakh for SC Leather Artisans — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
How much funding does the Direct Loan Scheme Karnataka provide?
Eligible applicants can receive assistance of up to ₹1,00,000. That figure is meant to cover the complete unit cost of starting or expanding a small business, and it applies per applicant.
Is this a grant, a loan, or both?
It is both, in equal halves. Of the total assistance, 50% comes as a subsidy that does not have to be repaid, and the remaining 50% is a loan. The loan portion is repaid in 24 equal instalments and is charged interest at 4%.
Who is eligible to apply?
You need to be a leather artisan from one of the notified Scheduled Caste sub-castes listed under the scheme, such as Chamar, Madiga, Mochi, Rohidas, Dhor and several others. You must be at least 18 years old. Your family's annual income must not exceed ₹30,000 in a rural area or ₹25,000 in an urban area.
Are there restrictions if my family already received a government scheme benefit?
Yes. Neither the applicant nor any family member should have taken benefits from other government schemes, and training programmes are the only exception to that condition. The scheme also requires that no family member is employed in a government or semi-government organisation.
What is the interest rate and repayment period on the loan component?
The loan half of the assistance carries a low interest rate of 4%. It is repayable in 24 equal instalments, which spreads the repayment over two years.
Does the scheme take equity in my business?
No. The support is structured as a subsidy plus a loan, so it is non-dilutive and no stake in the business is taken. The beneficiary continues to own the enterprise fully.
Is there an application deadline?
There is no fixed deadline. The scheme runs on a rolling basis and stays open, so eligible artisans can apply at any time of the year through the official portal.
How and where do I apply?
Applications are made online on the Seva Sindhu portal. First-time users must register with their Aadhaar number and captcha, verify an OTP sent to their Aadhaar-linked mobile, link DigiLocker, and then set an email ID, mobile number and password, validating the OTPs sent to both email and mobile. After registration, log in, open 'Department & Services', choose the Social Welfare Department, select the Direct Loan Scheme and click 'Apply Online'. You then enter your personal, address and banking details and submit. An Application ID is generated, which you can use to track your status.
What does the scheme aim to achieve?
It is designed to support unemployed Scheduled Caste artisans from the leather working community in Karnataka by giving them access to capital. With that money they can begin a new small business or grow an existing one, improving their livelihood and building economic independence.
Is DPIIT recognition required for Direct Loan Scheme Karnataka — ₹1 Lakh for SC Leather Artisans?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Direct Loan Scheme Karnataka — ₹1 Lakh for SC Leather Artisans, though having it can strengthen your application and unlock other benefits.
Who offers Direct Loan Scheme Karnataka — ₹1 Lakh for SC Leather Artisans?
Direct Loan Scheme Karnataka — ₹1 Lakh for SC Leather Artisans is offered by Karnataka State Leather Industries Development Corporation (LIDKAR), a government body. It is provided as non-dilutive funding.
How do I apply for Direct Loan Scheme Karnataka — ₹1 Lakh for SC Leather Artisans?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
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