The Scheme for Small Business Owners of Scheduled Castes to Buy a Place of Business/Shop, launched by the Director of Scheduled Caste Welfare under the Department of Social Justice & Empowerment, Government of Gujarat, is a groundbreaking initiative aimed at fostering economic empowerment among Scheduled Caste (SC) entrepreneurs. Established in 1991, this scheme provides financial assistance in the form of loans and subsidies to SC individuals, enabling them to purchase or construct business premises in urban areas. By reducing the financial burden through interest subsidies and additional support, the scheme encourages sustainable business development and self-reliance.

Objective of the Gujarat Small Business Owners Loan

The primary goal of this initiative is to uplift SC entrepreneurs by offering them access to affordable credit for purchasing or renting business premises. It also seeks to promote entrepreneurship among educated unemployed individuals, skilled professionals, and self-employed persons from the SC community, thereby contributing to their socio-economic growth.

Key Benefits of the Scheme

• Maximum Loan Amount: ₹10 lakhs per beneficiary.
• Interest Subsidy: Beneficiaries are required to pay only 4% interest on the loan. The government covers any interest payable above 4% as a subsidy for the first three years.
• Subsidy Assistance: An additional subsidy of ₹15,000 is provided to beneficiaries.
• Flexibility in Repayment: Borrowers can repay the loan installments and interest earlier than the due date without penalties.

Eligibility Criteria

To avail the benefits of this scheme, applicants must meet the following conditions:

1. Residency: The applicant must be a native of Gujarat.
2. Caste Category: The applicant should belong to the Scheduled Caste category.
3. Purpose of Loan: The loan must be used exclusively for purchasing or constructing a business premise/shop in an urban area.
4. Security Requirement: Applicants must provide security from two local individuals with immovable property equal to the full loan amount.
5. Priority Groups: Preference is given to:
   • Educated unemployed individuals.
   • Unemployed mill workers.
   • Persons with technical or professional qualifications.
   • Self-employed individuals with relevant experience.

Additional Guidelines

• Subsidy Payment: The ₹15,000 subsidy will be disbursed three months after the shop/business opens.
• Mortgage Condition: If the shop/business premise is allotted on long-term rent by government bodies, it must remain mortgaged to the government until the loan is fully repaid.
• Land Ownership: For those constructing on their land, proof of clear title and uncultivated land status is mandatory.
• Prohibited Activities: Illegal activities are strictly prohibited in the purchased or rented business premises.

How to Apply – Online Process

The application process for this scheme is conducted online through the e-Samaj Kalyan Portal. Follow these steps to apply;

1. Visit the Portal: Go to the official e-Samaj Kalyan Portal: https://esamajkalyan.gujarat.gov.in/.
2. Register as a New User: Under the ‘Citizen Login’ tab, click on ‘Please Register Here.’
3. Enter Details: Provide your full name (as per Aadhaar), gender, date of birth, Aadhaar number, email ID, caste details, and other required information. Click on ‘Register.’
4. Login: After successful registration, log in using your User ID and Password.
5. Update Profile: Click on ‘User Profile,’ fill in all mandatory fields, and update your profile.
6. Apply for the Scheme: Select the scheme from the home page. An application form will open.
7. Fill the Form: Complete all mandatory fields, upload the required documents, and agree to the terms and conditions.
8. Submit Application: Save and submit the application. Take a printout for future reference and note the application number to track its status.

Necessary Documents for Application

To ensure a smooth application process, prepare the following documents;

• Passport-size photograph.
• Caste certificate issued by a competent authority.
• Aadhaar card of the applicant.
• Proof of residence (electricity bill, license, lease agreement, electoral card, or ration card).
• Birth certificate or school leaving certificate.
• First-page copy of bank passbook or canceled cheque (in the applicant’s name).
• Agreement or bank guarantee (notarized affidavit).
• Any other documents specified by the authorities.

Frequently Asked Questions (FAQs)

Q1. Who launched this scheme and when?
A1. The scheme was launched by the Director of Scheduled Caste Welfare, Department of Social Justice & Empowerment, Government of Gujarat, in 1991 .

Q2. What is the maximum loan amount available under this scheme?
A2. The maximum loan amount is ₹10 lakhs.

Q3. How is the interest on the loan managed?
A3. Beneficiaries pay only 4% interest, while the government subsidizes any interest above 4% for the first three years.

Q4. Apart from the loan, what other subsidy assistance is provided?
A4. An additional subsidy of ₹15,000 is provided to beneficiaries.

Q5. Are there any restrictions on the purpose of the loan?
A5. Yes, the loan must be used exclusively for purchasing or constructing a business premise/shop in an urban area.

Q6. When is the subsidy paid to the beneficiary?
A6. The subsidy is paid three months after the shop/business opens.

Q7. Can loan installments and interest be repaid earlier than the due date?
A7. Yes, borrowers can repay the loan earlier than the due date without penalties.

Q8. What happens in case of defaulting on loan and interest payments?
A8. Defaulters will be charged 2.5% penal interest, and the outstanding loan amount may be recovered as land revenue arrears.

Why Choose This Loan Scheme?

This scheme is a lifeline for SC entrepreneurs looking to establish or expand their businesses. By providing financial assistance, interest subsidies, and additional support, it removes barriers to entry in the competitive urban market. Moreover, the emphasis on priority groups ensures that the most deserving candidates receive the necessary aid to build sustainable livelihoods.

The Scheme for Small Business Owners of Scheduled Castes to Buy a Place of Business/Shop is a transformative initiative that empowers SC entrepreneurs in Gujarat. With a maximum loan of ₹10 lakhs, attractive interest rates, and a ₹15,000 subsidy, this program offers a unique opportunity for SC individuals to achieve financial independence and contribute to the state’s economic growth.

References & Important Links

• Scheme Details & Guidelines
• Application Form PDF
• Financial Assistance to Small Entrepreneurs in Urban Areas

If you’re an aspiring entrepreneur or a small business owner from the SC community, don’t miss out on this chance to secure funding for your business. Visit the e-Samaj Kalyan Portal today and take the first step toward realizing your entrepreneurial dreams! For further details, refer to the official guidelines or contact the Department of Social Justice & Empowerment, Government of Gujarat.