The Direct Loan Scheme is a financial assistance initiative by the Karnataka Leather Industries Development Corporation Ltd under the Department of Social Welfare, Government of Karnataka. Launched to uplift unemployed leather artisans from Scheduled Castes, the scheme aims to empower individuals to start or expand small businesses through capital support—helping improve livelihoods and promote entrepreneurship in the state.
Benefits
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Total Financial Support: ₹1,00,000 per beneficiary
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Subsidy: 50% of the project cost
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Loan: Remaining 50% of the project cost, repayable in 24 equal installments
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Interest Rate: 4% per annum
Eligibility Criteria
Applicants must fulfill the following conditions to avail the benefits:
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Must belong to Scheduled Caste leather artisan sub-castes, including:
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Arundathiyar, Chammadiya, Chamar, Chambar, Chamagar, Madar, Madig, Madiga, Mini Madig, Jambavalu, Haralayya, Machigar, Mochigar, Mochi, Muchi, Telugu Mochi, Kamaati Mocha, Rohidas, Dhor, Kakkayya, Kankayya, Samagara, Samagar, Aadhi Andhra, Aadhi Dravida, Aadhi Karnataka
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Must be a leather artisan by profession
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Minimum age: 18 years
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Annual family income:
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₹30,000 or less in rural areas
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₹25,000 or less in urban areas
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Should not have availed benefits from other schemes, except training programs
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Family members should not be employed in government or semi-government institutions
Application Process
Step-by-Step Online Process via Seva Sindhu:
Registration:
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Visit the Seva Sindhu Portal.
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Click on “New Users Register Here”.
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Enter your Aadhaar Number and the captcha code.
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Verify with OTP sent to your Aadhaar-linked mobile.
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Set up your DigiLocker account and proceed.
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Fill in your email, mobile number, password, and captcha, then submit.
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Validate OTP sent to both email and phone to complete registration.
Applying for the Direct Loan Scheme:
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Log in to the Seva Sindhu portal.
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Go to “Departments & Services” → Select “Social Welfare Department”.
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Choose “Direct Loan Scheme”.
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Click “Apply Online” and log in with your registered credentials.
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Fill in the required details: personal, address, and banking information.
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Apply and note down the Application ID for tracking.
Documents Required
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Aadhaar Card
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Caste Certificate with valid RD number
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Annual Income Certificate
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Ration Card
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Passport-size photographs of the applicant and spouse
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Bank Passbook (with account details)
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Detailed Project Report (business proposal)
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Profession/Skill Certificate (issued by the Corporation’s technical committee)
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Loan Documentation as required by the bank
Frequently Asked Questions (FAQs)
Q: What is the Direct Loan Scheme?
A: It is a government-backed financial scheme providing ₹1,00,000 to eligible Scheduled Caste leather artisans—50% as a subsidy and 50% as a low-interest loan.
Q: Who is eligible?
A: Unemployed leather artisans from specific Scheduled Caste sub-communities in Karnataka with low family income.
Q: What is the age limit?
A: Minimum 18 years old at the time of application.
Q: Is there any reservation for female artisans?
A: Yes, female artisans may be given preference based on guidelines.
Q: Can differently-abled artisans apply?
A: Yes, if they fulfill all eligibility criteria.
Q: Can I apply if my family member is a government employee?
A: No, applicants whose family members work in government/semi-government institutions are not eligible.
Q: Where can I apply?
A: On the official Seva Sindhu Portal.
Q: What happens after I apply?
A: Your application is verified, and if eligible, you’re notified through the portal. The final beneficiary list is published by the department.
