AI Summary6% Interest Subsidy on Loans Taken for Vehicle Purchase through Banks is a Gujarat state scheme run by the Gujarat Tribal Development Corporation for Scheduled Tribe (ST) residents. Under this scheme, a tribal person who takes a bank loan of ₹5 lakh to ₹20 lakh to buy a vehicle for self-employment gets a 6% interest subsidy every year.
Tribal Development Department of the Government of Gujarat continues this scheme for ST candidates across tribal areas of the state. Gujarati Indian Express covered the scheme again in February 2026 and confirmed that the subsidy and the loan range remain unchanged, so new applicants can still use this support during 2026-27.
6% Interest Subsidy on Loans Taken for Vehicle Purchase through Banks - Introduction
The scheme lowers the cost of a commercial vehicle loan for tribal families. Instead of paying the full interest charged by the bank, the Gujarat Tribal Development Corporation pays 6% of the interest on their behalf. The subsidy is credited directly to the bank account of the beneficiary through RTGS.
This support helps tribal people who want to start a transport business, run a taxi, or buy a vehicle for their existing work. The vehicle must be used for self-employment or commercial purposes. A private family car is not covered under this scheme.
Key Information
| Key Aspect | Details |
|---|---|
| Scheme Name | 6% Interest Subsidy on Loans Taken for Vehicle Purchase through Banks |
| Level | State |
| State | Gujarat |
| Beneficiary Category | Scheduled Tribe (ST) residents of Gujarat |
| Benefit Type | Cash Subsidy |
| Benefit Amount | 6% interest subsidy, up to ₹1,20,000 per year |
| Eligible Loan Range | ₹5,00,000 to ₹20,00,000 |
| Main Department | Tribal Development Department, Government of Gujarat |
| Corporation | Gujarat Tribal Development Corporation |
| Application Mode | Offline at GTDC office or tribal district offices |
| Official Website | adijatinigam.gujarat.gov.in |
Benefits
Applicants receive a 6% interest subsidy on the bank loan taken to buy a vehicle. The support is calculated on the approved loan amount and paid every year for the loan period. As per the official rules, the maximum interest support for one beneficiary is ₹1,20,000 in a year, which matches loans in the ₹5 lakh to ₹20 lakh range.
| Loan Amount Range | Interest Subsidy |
|---|---|
| ₹5,00,000 to ₹20,00,000 | 6% interest subsidy, up to ₹1,20,000 per year |
Eligibility
To get the benefit, the applicant must meet these conditions:
- Must be a permanent resident of a tribal area in Gujarat. ST persons from other states are not eligible.
- Must belong to the Scheduled Tribe (ST) community and hold a valid caste certificate from a competent officer.
- Must have taken a bank loan between ₹5 lakh and ₹20 lakh specifically to buy a vehicle for business or self-employment.
- Must repay the loan instalments on time. Interest subsidy is paid only when regular repayment is confirmed.
Loan Amount and Conditions
The scheme covers loans of ₹5 lakh to ₹20 lakh approved by a bank for a four-wheeler used for work. Interest subsidy is limited to 6% of the loan amount. The vehicle cannot be sold for 5 years after purchase, and the subsidy amount is sent directly to the bank account of the beneficiary through RTGS.
Applicants must approach the bank directly for the loan. Once the bank approves the loan, the applicant should inform the corporation right away. The corporation verifies the loan papers and then approves the interest subsidy for payment.
Application Process
The application process is offline. Follow these steps:
STEP 1 - Visit the office of the Project Administrator, Gujarat Tribal Development Corporation, Birsa Munda Bhavan, Sector 10-A, Gandhinagar, or the nearest tribal district office during working hours.
STEP 2 - Ask the designated staff member for the official application format and take a hard copy. The form is free.
STEP 3 - Fill in all required fields and attach self-attested copies of the required documents, including the bank loan papers.
STEP 4 - Submit the completed form to the office of the Tribal District Sponsorship Administrator together with the documents.
STEP 5 - Collect a signed receipt or acknowledgment that shows the date of submission and a reference number. After the bank approves the loan, inform the corporation immediately so the interest subsidy can be processed after verification.
Documents Required
Keep these documents ready before applying:
- Aadhaar Card and identity card
- Caste certificate that confirms ST status
- Loan approval letter from the bank
- Bill of vehicle purchase and copy of RC book
- Bank passbook or a cancelled cheque along with the loan account statement
- Recent passport-size photographs
References
Official scheme page of Gujarat Tribal Development Corporation
Official website of Gujarat Tribal Development Corporation
Gujarati Indian Express update on the 6% interest subsidy scheme (February 2026)
Mari Yojana portal for scheme details
FAQ's
Who can apply for this scheme?
Any Scheduled Tribe person who is a resident of a tribal area in Gujarat and has taken a bank loan to buy a vehicle for self-employment or business can apply.
What is the range of eligible loan amounts?
The scheme supports bank loans between ₹5,00,000 and ₹20,00,000 for vehicle purchase.
What subsidy interest rate is provided?
Beneficiaries get a 6% interest subsidy on the eligible bank loan amount, up to ₹1,20,000 in a year.
Is there an income limit to qualify for this benefit?
No, there is no specific income limit defined for this scheme.
Can I purchase a private car for my family?
No, this scheme is for vehicles used for self-employment or commercial purposes only.
How do I obtain the application form?
The form is free and can be collected from the office of the Project Administrator in Gandhinagar or any tribal district office.
Can I apply for this scheme online?
No, there is no online application process. Applicants must submit the form in person at the concerned office.
Where do I submit my application?
Submit the application directly to the office of the Tribal District Sponsorship Administrator.
What documents do I need to submit?
Applicants need the Aadhaar card, caste certificate, loan approval letter, vehicle purchase bill, RC book copy, bank passbook or cancelled cheque, and passport-size photographs.