Direct Loan Scheme

Direct Loan Scheme offers financial support to unemployed scheduled caste individuals from the leather artisan community in Karnataka. Eligible candidates receive a mix of loan and subsidy to start small businesses and build self-employment.

Karnataka Leather Industries Development Corporation Ltd, known as LIDKAR, runs this scheme under the social welfare department. The scheme gives a total unit cost of ₹1,00,000, split as a ₹50,000 loan and a ₹50,000 subsidy, to help artisans launch or grow small enterprises.

Direct Loan Scheme - Introduction

Direct Loan Scheme is a state-level scheme made for skilled leather artisans who want to set up their own small business. The main aim is to give the required capital so that artisans can start work on their own instead of depending on others for income.

The scheme covers small business activities such as petty shops, readymade garment shops, sheep and goat rearing, fishery, fruit and vegetable shops, and tailoring. Around half of the total target is kept for dairy farming in rural areas, while the other half is for these small businesses in urban areas.

Benefits

This scheme offers a total unit cost of ₹1,00,000 to help eligible artisans start their business. The support is given in two parts, a loan and a subsidy, as shown below.

The loan amount has to be repaid in 24 equal monthly installments at an affordable interest rate of 4%. The subsidy part does not have to be repaid and is given to reduce the burden on the artisan.

Eligibility

To apply for Direct Loan Scheme, the candidate needs to meet the criteria set by the corporation. The main conditions are given below.

• Applicant should be a leather artisan belonging to scheduled caste sub-castes such as Arundathiyar, Chamar, Mochi, Madiga, Samagara, or other sub-castes listed in the official rules.
• Applicant should be at least 18 years old at the time of applying.
• Total annual family income should not be more than ₹30,000 in rural areas or ₹25,000 in urban areas.
• Applicant or family members should not have taken benefits under other schemes from the corporation earlier, except training or Padhuke Kuteera schemes.
• No family member should be employed in government or semi-government organizations.

Female artisans get 33% reservation across the schemes, and physically challenged candidates get 5% reservation. Only one artisan from a family, meaning husband, wife and unmarried children, is allowed to benefit.

Application Process

Applications for Direct Loan Scheme are accepted online through the Suvidha or Seva Sindhu portals of Karnataka. The steps to apply are given below.

STEP 1 - Visit the official LIDKAR website at lidkar.com and open the self employment programs section to read the scheme details and check the required documents.

STEP 2 - Go to the Suvidha or Seva Sindhu portal and register as a new user using the Aadhaar number and the captcha shown on the page.

STEP 3 - Verify the identity using the OTP sent to the Aadhaar linked mobile number and complete the DigiLocker integration when asked.

STEP 4 - Log in to the portal, go to the department and services section, and select the Social Welfare Department.

STEP 5 - Search for Direct Loan Scheme, click on the apply online button, and fill in the personal, address and banking details correctly.

STEP 6 - Submit the form and save the generated Application ID to track the status of the application later.

Documents

Applicants should keep the following documents ready before filling the application form. Missing documents can delay the checking process.

• Aadhaar Card.
• Caste certificate with the RD number.
• Valid annual income certificate.
• Ration Card.
• Recent passport size photographs of the applicant and the spouse.
• First page of the bank passbook.
• Detailed project report for the proposed business.
• Profession or skill test certificate issued by the technical section committee of the corporation.
• Loan documents for the Direct Loan Scheme.

After the application is submitted, the District Coordinator verifies the forms and prepares a list of eligible applicants. The list goes to the concerned MLA for recommendations and then to the District Level Selection Committee, which is headed by the Joint or Deputy Director of the Social Welfare Department. The final list is put up on the notice boards of the respective units after getting administrative approval.

References

Official LIDKAR Self Employment Programs

LIDKAR Official Website

FAQ's

What is Direct Loan Scheme?

It is a government scheme that gives a total of ₹1,00,000, made up of a ₹50,000 loan and a ₹50,000 subsidy, to help SC leather artisans start small businesses.

Who is eligible for the scheme?

Leather artisans belonging to designated SC sub-castes such as Arundathiyar, Chamar or Mochi who meet the income and age requirements can apply.

What is the age limit for applicants?

Applicants should be at least 18 years old to apply for this support.

Are female artisans given any reservation?

Yes, 33% of the scheme benefits are reserved for female artisans.

Can physically challenged artisans apply?

Yes, 5% of the total benefits are reserved for physically challenged candidates.

How do I apply for the scheme?

Applications are submitted online through the Suvidha or Seva Sindhu official portals of Karnataka.

Can I apply if my family member works in the government?

No, applicants are not eligible if any member of the family is employed in a government or semi-government organization.

What documents are required for the application?

Applicants need the Aadhaar card, caste certificate, income certificate, ration card, and a detailed project report for the business.

What is the process after application submission?

Once the form is submitted, the District Coordinator verifies it, and a selection committee evaluates it to finalize the list of beneficiaries.

Where is the final list of selected beneficiaries published?

The authorities publish the final approved list on the notice boards of the respective units after getting administrative approval.