The “Scheme for Small Business Owners of Scheduled Castes to Buy a Place of Business/Shop” was launched in 1991 by the Director of Scheduled Caste Welfare, Department of Social Justice & Empowerment, Government of Gujarat. This scheme provides financial assistance in the form of loans and subsidies to individuals belonging to the Scheduled Caste category, aiming to enable them to purchase business premises or shops in urban areas for business development.
Benefits
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Loan Facility:
A maximum loan of up to ₹10 lakhs is available to eligible beneficiaries for purchasing a business premises or shop. -
Interest Subsidy:
Beneficiaries will bear interest at a rate of up to 4%. Any interest payable above 4% is covered by the government as an interest subsidy for three years. -
Subsidy Assistance:
An additional subsidy of ₹15,000 is provided under the scheme.
Eligibility
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Residency and Category:
The applicant must be a native of Gujarat and belong to the Scheduled Caste category. -
Purpose:
Loan assistance is provided exclusively for purchasing a shop or business premises at one location. If the premises are acquired on long-term rent from government or related authorities, the property must be mortgaged to the government until the loan is fully repaid. -
Additional Priorities:
Priority is given to educated unemployed individuals, unemployed mill workers, persons with technical and professional experience, and self-employed persons with qualifications. -
Construction on Own Land:
If the applicant chooses to construct on their own land, they must provide proof that the land title is clear and that the land is uncultivated. -
Security:
Applicants must provide security from up to two local persons having immovable property equal to the full loan amount.
Important Notes
- The purchased business premises/shop must comply with all applicable land and construction rules. Any defects in this regard may lead to recovery of the loan/assistance through revenue channels.
- Loan assistance is strictly for the intended purpose; any diversion will result in recovery of the full amount along with penal interest.
- Applicants have the option to repay the loan installments and interest earlier than the due date.
- Any illegal activities conducted at the purchased premises will result in disqualification.
- Defaulters will be charged an additional 2.5% penal interest, and the outstanding loan may be recovered as land revenue arrears.
Application Process
Online via the E-Samaj Kalyan Portal
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Visit the Portal:
Access the official portal at https://esamajkalyan.gujarat.gov.in/. -
Registration:
- Under the ‘Citizen Login’ tab, click on “New User – Please Register Here.”
- Enter your full name (as per Aadhaar), gender, date of birth, Aadhaar card number, email ID, caste, etc., and click “Register.”
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Login and Profile Update:
- After successful registration, log in using your User ID and Password.
- Click on “User Profile” to update your details and then click “Update.”
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Application Submission:
- Select the scheme from the home page to open the application form.
- Fill in all mandatory details and upload the relevant documents.
- Agree to the terms and conditions, click “Save Application,” and then submit the form.
- Print the application for future reference and note the application number to track the application status.
Documents Required
- Passport-size Photograph.
- Caste Certificate issued by the competent authority.
- Aadhaar Card of the applicant.
- Proof of Residence (e.g., Electricity Bill, Licence, Lease Agreement, Electoral Card, or Ration Card).
- Birth Certificate or School Leaving Certificate.
- First-page copy of bank passbook or a cancelled cheque (in the name of the applicant).
- Agreement or Bank Guarantee (notarized affidavit).
- Any other documents as specified by the scheme.
Frequently Asked Questions
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Who launched this scheme and when?
The scheme was launched in 1991 by the Director of Scheduled Caste Welfare, Government of Gujarat. -
What is the maximum loan amount available under this scheme?
The maximum loan available is ₹10 lakhs. -
How is the interest on the loan managed?
Beneficiaries pay interest up to 4%; any interest above 4% is subsidized by the government for three years. -
Apart from the loan, what other subsidy assistance is provided?
A subsidy assistance of ₹15,000 is provided. -
What are the eligibility criteria for applicants?
Applicants must be native to Gujarat, belong to the Scheduled Caste category, and use the loan solely for purchasing a shop or business premises. -
Are there any restrictions on the purpose of the loan?
Yes, the loan can only be used for the intended purpose of buying a shop or business premises. -
When is the subsidy paid to the beneficiary?
The subsidy is paid after three months of the shop opening. -
Who gets priority in availing the benefits of this scheme?
Priority is given to educated unemployed individuals, unemployed mill workers, persons with technical and professional experience, and self-employed persons with qualifications. -
Can loans/assistance be provided for shops/business premises allotted on long-term rent?
Yes, provided that the premises are mortgaged to the government until the loan is repaid. -
Can loan installments and interest be repaid earlier than the due date?
Yes, early repayment is permitted. -
What happens in case of defaulting on loan and interest payments?
Defaulters will incur an additional 2.5% penal interest, and any outstanding loan amount may be recovered as land revenue arrears. -
Where can eligible applicants apply for this scheme?
Applications can be submitted online through the E-Samaj Kalyan Portal.