AI SummarySmall Scale Lending Scheme (Microfinance) provides business loans up to ₹1,25,000 at a low interest rate of 5% for small entrepreneurs from the Rabari and Bharwad communities in Gujarat. Gujarat Gopalak Vikas Nigam runs this program, and applications are accepted online through the DAAD online portal.
Gujarat government keeps this scheme open for eligible applicants in 2026. The loan covers 95% of the project cost, and the applicant needs to put in only 5% of their own money. This makes it easier for small business owners to start or grow their work.
Small Scale Lending Scheme (Microfinance) - Introduction
Small Scale Lending Scheme (Microfinance) is a supportive scheme by the Social Justice and Empowerment Department, government of Gujarat. It offers microcredit to small entrepreneurs from the Rabari and Bharwad communities. The scheme helps eligible people get loans up to ₹1,25,000 at a subsidized interest rate of 5% per annum.
Applicants need to belong to the socially and educationally backward classes and be aged between 21 and 45 years. Gujarat Gopalak Vikas Nigam implements the program, and the online application process runs through the Department of Agriculture and Animal Husbandry (DAAD) online portal.
The loan is repaid in 48 equal monthly instalments along with interest. This gives small business owners a clear and manageable repayment plan. The main aim is to help people from the Rabari and Bharwad pastoral communities set up small businesses with minimal personal investment.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Small Scale Lending Scheme (Microfinance) |
| Level | State |
| Scheme for | Individual |
| Beneficiary State | Gujarat |
| Category | Social welfare and Empowerment, Banking, Financial Services and Insurance |
| Target Beneficiaries | Entrepreneurs from Rabari and Bharwad communities |
| Sub Category | Financial assistance, Banking and money, Personal finance |
| Benefit Type | Cash |
| DBT Scheme | No |
| Nodal Department | Social Justice and Empowerment Department |
| Implementing Agency | Gujarat Gopalak Vikas Nigam |
| Tags | Microfinance, Loan, Subsidy, Interest, Entrepreneurs |
Benefits
Loan Amount: Eligible applicants can access a maximum loan of ₹1,25,000.
Interest Rate: The scheme offers a low, subsidized interest rate of 5% per annum.
Loan Coverage: The loan covers 95% of the total project cost.
Beneficiary Contribution: The applicant needs to contribute only 5% of the project cost from their own funds.
Repayment: The loan amount is repaid in 48 equal monthly instalments along with interest.
Target Group Support: The program provides focused money help to entrepreneurs from the Rabari and Bharwad communities.
Eligibility
To qualify for this support, applicants should meet the following criteria:
- Applicant must belong to the Rabari or Bharwad castes under the socially and educationally backward classes.
- Age should be between 21 and 45 years at the time of application.
- Annual family income should be ₹3,00,000 or less. For example, if Ramesh, a young entrepreneur from the Bharwad community, earns ₹2,50,000 annually, he is eligible to apply for this business support.
- Applicant must have the required skill and experience in the business or trade they plan to start.
- Applicant must provide a proper guarantee to get the loan.
Application Process
Online
STEP 1 - Visit the official DAAD Online website. At the bottom of the page, go to the section titled Details of the Scheme and click the Apply Now button for this scheme.
STEP 2 - Fill in all the required information in the application form and upload the necessary documents in the correct format and size. Review your details carefully, complete the Captcha, and click Submit. After successful submission, save your Confirmation Number for any future edits or uploads.
STEP 3 - Access the Print Application page portal. Enter your scheme details, date of birth, and confirmation number to download or print a final copy of your application.
Documents
Applicants should keep the following required documents list ready for the application:
- Passport size photograph
- Caste certificate
- Income certificate
- Age proof
- Identity proof
- Address proof
- Bank account details
- Detailed project report or business plan
References
For further guidance, consult these official resources:
FAQ's
I am 46 years old and belong to the Rabari community. Can I still apply?
No, the age eligibility is strictly between 21 and 45 years. You must fall within this bracket to qualify.
Can my spouse and I apply jointly for the loan?
No, only an individual who belongs to the Rabari or Bharwad community qualifies as the primary applicant. Joint applications are not accepted.
If I need ₹1,50,000, can I apply for multiple loans?
No, you can only receive the maximum limit of ₹1,25,000 under this program. Multiple applications are not permitted.
Which income records are used for eligibility verification?
Authorities look at your current annual income, which must be within the ₹3,00,000 threshold. You should submit an up-to-date income certificate to prove your status.
How do I handle the 5% beneficiary contribution?
You must pay your 5% share (for example, ₹5,000 for a ₹1,00,000 project) from your own funds. This is a required upfront contribution that cannot be deducted from your loan amount.
Is my caste certificate from 10 years ago still valid?
If your certificate is issued by the competent authority and is clearly readable, it is generally accepted. However, make sure it is not under any current legal dispute.
Whom do I contact for help with my application status?
You should first contact the DAAD online portal helpdesk. For specific policy questions, reach out to the Gujarat Gopalak Vikas Nigam or the Social Justice and Empowerment Department.