Loan for Small Businesses (DAADC)

Access to affordable funding remains a common issue for small and first-time business owners. To address this, the Dr. Ambedkar Antyodaya Development Corporation (DAADC), under the Social Justice and Empowerment Department of the Government of Gujarat, introduced the Loan for Small Businesses (DAADC). The scheme is intended for providing a seamless credit facility to individuals from marginalised communities, ensuring support for them in starting a new business or expanding an existing one.

With loan assistance of up to ₹1.25 Lakhs, this initiative helps individuals build stable income sources and contribute to the local economy.

The small business loan is meant to help people from weaker economic backgrounds obtain funding for small business activities. The scheme focuses on supporting self-employment at the ground level. The key features are listed below:

• Subsidised Interest Rate: Interest rate is fixed at 4% per year under this scheme, which is lower than any commercial banking product.
• Targeted Assistance for AAY Families: This loan is mainly for Scheduled Caste (SC) category coming under Antyodaya Anna Yojana (AAY).
• Full State Contribution: In several cases, the 100% loan amount is funded by the state government without any beneficiary contribution needed.
• Concessional Loan Amount: Eligible applicants can take a DAADC Loan for Small Businesses up to ₹1.25 Lakhs for starting or running small business activities.
• Affordable Monthly Repayments: The maximum monthly installment capped at approximately ₹2,302, with the convenient repayment schedule of up to 60 months (5 years), which endures easy manageability along with regular business expenses.
• Guarantor Support: You are required to furnish details of two guarantors
• Purpose-Driven Funding: The amount sanctioned can be used only for starting any self-employment venture or for running or expanding an existing small business.

To qualify for thE initiative, candidates must meet the specific eligibility criteria discussed below:

• You should be a resident of Gujarat.

• You should belong to the Scheduled Caste (SC) category.

• You should belong to an Antyodaya Anna Yojana (AAY) family.

• Your annual family income should not exceed ₹3 Lakh.

• You should intend to start or expand a small business or occupation.

• You should be able to provide two guarantors.

You are required to submit the following documents to ensure a smooth verification process of the small business loan:

• Aadhaar Card

• Bank Account Details

• Income Certificate

• School Leaving

• Copy of Electric Bill

• Age Proof

• Caste Certificate

• Ration Card

• Copy of Election Card

Follow these simple steps to apply for DAADC Loan for Small Businesses:

• Step 1: Visit  https://daadconline.gujarat.gov.in/, the official website of Dr. Ambedkar Antyodaya Vikas Nigam (SC).
• Step 2: On the top menu bar, click on the ‘Apply Online’ button.
• Step 3: Locate and click on the specific loan scheme name from the available options.
• Step 4: Choose the appropriate loan category and enter the required loan amount.
• Step 5: Enter the following details accurately in the form:
  • Personal Information: Name, gender, date of birth, and caste.
  • Address Information: Provide both permanent and correspondence addresses.
  • Income Details: Mention monthly family income and its source.
  • Loan Requirement: Specify the amount needed and the proposed use, such as for business or self-employment.
• Step 6: Provide your bank account details for the direct disbursement of the loan.
• Step 7: Upload the scanned copies of your Caste certificate, Income certificate, Aadhaar card, Passport-size photo, Bank passbook (first page), and Residence proof.
• Step 8: Double-check all entered details. Click ‘Preview’ to review the information and, if everything is correct, click ‘Submit’.
• Step 9: Upon successful submission, you will receive an Application ID/Reference Number. Save or print this acknowledgement for future tracking of your application.

The DAADC Loan for Small Businesses is a transformative resource for Gujarat’s Scheduled Caste entrepreneurs, offering the financial foundation needed for sustainable self-employment. By using the benefit of this scheme, eligible families can achieve long-term economic independence. If you require higher capital or faster processing without specific category restrictions, check out Bajaj Markets, a financial marketplace that helps you find business loan options matching your preferences through easy comparison and quick digital processing.