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Banking,Financial Services and Insurance; Business & Entrepreneurship

Loan for Small Businesses (DAADC)

The scheme aims to promote self-employment among Scheduled Caste individuals belonging to Antyodaya Anna Yojana families by providing financial assistance for starting small businesses. Under this scheme, eligible beneficiaries are provided a loan of upto ₹1,25,000/- at a concessional interest rate.

Authority

State/ UT

Region

Gujarat

Status

Verified 2026

Updated

March 2026

What you get

Loan Amount: | - Up to ₹1,25,000/- | Interest Rate_:_ | - 4% per annum | Loan Tenure:__ | - 60 months (5 years) | Guarantors Required:__ | - Two guarantors | State Government Contribution: | - 100% (no beneficiary share required) | Approximate Installment Amount: | - ₹2,302/- per month (maximum)

Who can apply

The applicant should be a resident of Gujarat.; The applicant should belong to the Scheduled Caste (SC) category.; The applicant should belong to an Antyodaya Anna Yojana (AAY) family.; The applicant’s annual family income should not exceed ₹3,00,000/-.; The applicant should intend to start or expand a small business or occupation.; The applicant should be able to provide two guarantors.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

Who is eligible for this scheme?

Scheduled Caste (SC) individuals belonging to Antyodaya Anna Yojana (AAY) families residing in Gujarat.

What is the repayment period for the loan?

The loan must be repaid within 60 months (5 years).

Are there any guarantor requirements?

Yes, 2 guarantors are mandatory.

Is there any income limit?

Yes, annual family income must be ₹3,00,000 or less.

What is the contribution of the State Government?

The State Government contributes 100% towards the interest subsidy on the loan.

How much is the monthly installment?

The maximum monthly installment is approximately ₹2,302.

Are women eligible for this loan scheme?

Yes, eligible SC women from AAY families can also apply under this scheme.

Can a person from another state apply for this scheme?

No, only residents of Gujarat are eligible to apply for the Scheme.