GMFDC Term Loan Scheme — ₹1L–₹20L for Gujarat Minorities — Frequently Asked Questions

It is a debt funding programme from the Gujarat Minorities Finance and Development Corporation (GMFDC), a body working under the Government of Gujarat's Social Justice and Empowerment Department. The corporation extends concessional term loans so that people from minority communities in the state can take up self-employment or expand a small business.

Sanctions range from ₹1,00,000 to ₹20,00,000. The funds can go towards agriculture and allied activity, animal husbandry, fisheries, handicrafts and other traditional occupations, small-scale businesses, the transport sector, technical and skilled self-employment, and service-based trades. In practice, borrowers use the money to purchase equipment, buy raw material, or meet working capital requirements.

If your annual family income is up to ₹1,20,000, the rate is 6% per annum. If your family earns above ₹1,20,000 and up to ₹8,00,000, male beneficiaries pay 8% per annum while female beneficiaries pay 6% per annum. These concessional rates are the core advantage of the scheme over a commercial loan.

The loan, including interest, is repaid over a period of five years in 60 equal monthly instalments.

You need to be a Gujarat resident, aged between 21 and 45 years, and belong to one of the recognised minority religious communities (Muslim, Christian, Sikh, Jain, Buddhist, Parsi or Jewish) or linguistic communities (Sindhi, Marathi or Urdu). Your family income must also fall within the scheme's slabs, and neither you nor any family member should have taken a loan previously from GMFDC or another government corporation, institution or bank.

Yes. The main concessional tier covers annual family income of up to ₹98,000 in rural areas and up to ₹1,20,000 in urban areas. Families earning up to ₹8,00,000 a year can also apply, but their loans are priced at a different interest rate.

No. The scheme rules bar applicants whose family has previously obtained a loan from GMFDC, the Gujarat Backwards Class Development Corporation, or any other central or state government corporation, institution or bank.

No equity is taken. This is a term loan that you repay with interest over five years, so your ownership of the business stays entirely with you. The scheme's stated eligibility criteria also do not require DPIIT recognition or MSME registration.

Online, you register on the GMFDC website with your name, mobile number, email, Aadhaar and a password, note the User ID generated, then log in and select the Term Loan Scheme. You fill in personal, income, business and bank details, and upload your Identity Proof, Address Proof, Income Certificate, Minority Certificate, Educational Qualification Certificate, Experience Certificate (if you have one), Business Proposal and Bank Passbook in the specified format and size. After reviewing everything, you submit and note down the application number, optionally taking a printout. Offline, application forms are available from the GMFDC office in Gandhinagar or from your District Deputy Director or District Social Welfare Officer (Developing Castes) office.

There isn't one. The scheme runs on a rolling basis and stays open throughout the year, so you can apply as soon as your business proposal and documents are in order.