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Banking,Financial Services and Insurance; Business & Entrepreneurship

Scheme for Small Business Owners of Scheduled Castes to Buy a Place of Business/Shop

Under the scheme, financial assistance in the form of loans and subsidies is provided by banks to individuals belonging to the Scheduled Castes category. This assistance is aimed at enabling them to purchase business premises or shops in urban areas for business development.

Authority

State/ UT

Region

Gujarat

Status

Verified 2026

Updated

March 2026

What you get

- Under the scheme, a maximum loan of ₹10 lakhs will be available to the beneficiary belonging to the scheduled caste category to buy a business premises/shop in the urban area. The beneficiary will bear interest up to 4%, while any bank interest payable above 4% will be covered by the government as an interest subsidy for three years. | - ₹15000/- is also given as subsidy assistance under the scheme.

Who can apply

The applicant should be a native of Gujarat.; The applicant should belong to the Scheduled Caste category.; There is no income limit.; Loan assistance is given to the beneficiary only for the purpose of shop or business at one place.; The subsidy will be paid after three months of shop opening.; The benefits of this scheme will be given first priority to educated unemployed, unemployed mill workers, persons with technical & professional experience and self-employed persons with qualifications.; Loans/assistance are also provided for shops/business premises allotted on long-term rent by the State Government or State Government owned Boards/Corporations, Urban Development Authorities, Local Self Government Bodies, or Gram/Nagar Panchayats. However, the shop/business premises will have to be mortgaged to the government till the loan amount for the allotted shop/business premises is repaid.; If the applicant constructs on his own land, he will have to submit proof that the title of his land is cleared, and the land is' uncultivated '.; Applicants desirous of availing the benefit of this scheme have to provide security of a maximum of two local persons having immovable property equal to the full amount of the loan.

Required Paperwork

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

Common Questions

Who launched this scheme and when?

The scheme was launched by the Department of Social Justice & Empowerment, Government of Gujarat, in 1991.

What is the maximum loan amount available under this scheme?

Beneficiaries belonging to the Scheduled Caste category can access a maximum loan of [?]10 lakhs to purchase a business premises/shop in urban areas.

How is the interest on the loan managed?

The beneficiary bears interest up to 4%, while any bank interest payable above 4% is covered by the government as an interest subsidy for three years.

Apart from the loan, what other subsidy assistance is provided?

A subsidy assistance of [?]15,000/- is also given under this scheme.

What are the eligibility criteria for applicants?

Applicants must be natives of Gujarat and belong to the Scheduled Caste category. There is no income limit.

Are there any restrictions on the purpose of the loan?

The loan assistance is provided only for the purpose of establishing a shop or business at one place.

When is the subsidy paid to the beneficiary?

The subsidy will be paid three months after the opening of the shop.

Who gets priority in availing the benefits of this scheme?

Priority is given to educated unemployed individuals, unemployed mill workers, persons with technical and professional experience, and self-employed persons with qualifications.

Can loans/assistance be provided for shops/business premises allotted on long term rent?

Yes, loans/assistance can be provided for such premises, but they must be mortgaged to the government until the loan amount is repaid.

Can loan installments and interest be repaid earlier than the due date?

Yes, applicants are free to repay loan installments and interest earlier than the due date.

What happens in case of defaulting on loan and interest payments?

Defaulters will be charged 2.5% more as penal interest, and the outstanding loan amount can be recovered as land revenue arrears.

Where can eligible applicants apply for this scheme?

Eligible applicants may apply through the e-Samaj Kalyan Portal: https://esamajkalyan.gujarat.gov.in/