DAADC Microcredit Finance Scheme SHG Gujarat SC ST
Overview
The Microcredit Finance Scheme for Self Help Groups (SHGs) is run by the Developing Adivasi and Antyavasayi Development Corporation (DAADC) in Gujarat. It provides small loans to SHGs formed by members of Scheduled Caste and Scheduled Tribe communities for income-generating activities, building both financial capacity and community solidarity.
Objective
The scheme promotes collective financial empowerment by channeling credit through self-help groups. It strengthens community solidarity, encourages savings habits, and helps marginalized groups access formal lending with ease, bypassing the barriers that individual applicants often face.
Benefits
- Micro loans to registered SHGs for a range of productive activities
- Low interest rates specifically designed for community-based groups
- Encourages group savings discipline and financial planning
- Supports small businesses, crafts, agriculture, and other livelihood activities
- Builds the credit history of members for future formal banking access
Eligibility
- Self-help groups composed predominantly of SC or ST members in Gujarat
- SHG must be registered and have a functional and active savings record
- Member households must belong to low-income categories
- SHG must submit a clear and viable activity plan for the loan amount
Exclusions
- SHGs with members only from general or OBC categories are not covered
- Groups with past defaults on DAADC or other government-backed loans
- SHGs not formally registered with an authorized body or gram panchayat
Application Process
- The SHG approaches the nearest DAADC district office
- Application form is collected and filled collectively by the group
- Documents are attached and submitted to the DAADC for review
- DAADC verifies SHG registration, savings history, and proposed activity
- Loan is disbursed directly to the SHG’s joint bank account
Documents Required
- SHG registration certificate from gram panchayat or authorized body
- SHG savings passbook showing regular transactions
- Caste certificates of all SHG members
- Aadhaar cards of all members
- Minutes of SHG meeting approving the loan application
- Joint bank account details of the SHG
- Written plan describing the proposed livelihood activity
