Gujarat’s government unveiled a new entrepreneurship loan scheme on June 27, 2025, targeting youth to foster innovation and job creation. Offering low-interest loans up to ₹50 lakh, the initiative aims to support 10,000 young entrepreneurs in 2025–26. With streamlined processes and mentorship, it seeks to position Gujarat as a startup hub, boosting economic growth and self-employment.
Gujarat Unveils Ambitious Loan Scheme to Empower Young Entrepreneurs
On June 27, 2025, the Gujarat government launched a transformative entrepreneurship loan scheme aimed at empowering the state’s youth to drive innovation and economic growth. Announced during a high-profile event in Ahmedabad, the initiative, named the “Yuva Udyam Yojana,” targets individuals aged 18–35, offering accessible financial support to turn innovative ideas into scalable businesses.
The scheme provides collateral-free loans of up to ₹50 lakh at a subsidized interest rate of 4% per annum, with the state government offering a 5% interest subvention for up to five years. This financial aid is designed to ease the burden on young entrepreneurs, enabling them to focus on business development without the stress of high repayment costs. The initiative is backed by a ₹2,000 crore corpus for 2025–26, with plans to support at least 10,000 startups across sectors like technology, agriculture, renewable energy, and manufacturing.
A key feature of the scheme is its integration with Gujarat’s Student Startup and Innovation Policy (SSIP) and i-Hub, which will provide mentorship, incubation support, and industry linkages. The government has partnered with leading financial institutions, including the State Bank of India and HDFC Bank, to ensure seamless loan disbursal through a dedicated online portal. Applicants can submit business proposals, which will be evaluated by a panel of industry experts within 30 days, ensuring a swift and transparent process.
The scheme also emphasizes inclusivity, reserving 30% of funds for women entrepreneurs and 20% for those from marginalized communities. Special provisions, such as extended repayment periods and additional grants of up to ₹5 lakh, are available for startups in rural areas and those focused on sustainable technologies.
Chief Minister Bhupendra Patel, speaking at the launch, highlighted Gujarat’s vision to become India’s leading startup ecosystem. “Our youth are our strength. This scheme will provide them the wings to fly, turning their dreams into reality while creating jobs and boosting Gujarat’s economy,” he said. Industry leaders have praised the initiative, noting its potential to position Gujarat as a global hub for innovation, especially in light of the state’s SpaceTech Policy 2025–2030, which is already attracting investments in aerospace and satellite infrastructure.
The scheme comes at a time when Gujarat is witnessing robust economic growth, with GST revenue surging 11% to ₹6,150 crore in June 2025. By fostering entrepreneurship, the state aims to sustain this momentum, creating a ripple effect of job opportunities and industrial development. Experts estimate that the initiative could generate over 50,000 direct and indirect jobs by 2027, particularly in high-tech and green energy sectors.
To ensure success, the government has planned workshops and training programs in collaboration with institutions like IIT Gandhinagar and the Entrepreneurship Development Institute of India (EDII). These programs will equip young entrepreneurs with skills in business planning, financial management, and market strategies. The scheme also integrates with national initiatives like the Employment Linked Incentive Scheme, approved by the Union Cabinet in July 2025, to maximize employment outcomes.
Disclaimer: This article is based on information from government announcements, industry reports, and credible news sources. Readers are advised to verify details through official channels before applying for the scheme.