§1Who it is for

  • Home-based cottage industries (smithy, carpentry, weaving, pottery, handmade jewellery etc.) with a bank loan

Useful if

Artisans and home units in DNH & DD.

Do not spend time on it if

Factory-scale units.

§2Eligibility

  1. Above 18 years
  2. Passed at least standard 4
  3. At least one month training from a GoI-recognised institute in the activity, or 1 year experience, or hereditary craftsperson
  4. Term loan from nationalised, cooperative, public sector or private bank

§3Benefits

  • Capital subsidy 25% of term loan, max ₹5 lakh; +10% for SC/ST/women/differently-abled (30%+)
  • Interest subsidy 50% for up to 5 years from start of production

§4Norms — pattern of assistance

  1. Maximum bank loan ₹20 lakh

§5Documents

Not published

The guideline does not list the documents. Ask the portal or bank before you apply — we do not make up lists.

§6How to apply

  1. 1

    Apply online on swp.dddgov.in to GM, DIC

§7Pros and cons

Merits

  • Low entry bar (standard 4 pass)
  • Both capital and interest subsidy

Demerits

  • Loan capped at ₹20 lakh

→Related schemes

Need help with DNH&DD cottage industry subsidy?

Eligibility check, DPR and application file — ask us on WhatsApp.

WhatsApp usServices

Our interestHelp is our paid service. You can also apply for the scheme yourself.

Sources

  1. IPS 2022 - Gazette of DNH & DD, 20 May 2022

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.