Trade and Business Sector Scheme (HSFDC) — Loans & Subsidy up to ₹1.5 Lakh

The Trade and Business Sector Scheme is run by the Haryana Scheduled Castes Finance and Development Corporation (HSFDC), a wholly state-government-owned corporation that has worked on the socio-economic upliftment of marginalised communities since 1971. Delivered in tie-up with banks, it bundles a subsidy, a low-interest loan from the Corporation and a bank loan into one package, so that aspiring entrepreneurs from Scheduled Caste families below the poverty line can fund a business without having to arrange the entire capital on their own.

The scheme is open to micro-entrepreneurs across rural and urban Haryana who want to launch or expand an income-generating venture. Qualifying activities include retail outlets such as kiryana and stationery stores, cloth, tea and fruit shops and kabadi units, along with service businesses like beauty parlours, auto repair workshops, band parties and tent houses, plus other viable micro-enterprises.

Support is capped by the project cost, which can go up to ₹1,50,000, and the scheme's published range of assistance runs from ₹15,000 to ₹1.5 lakh. Within that ceiling, HSFDC contributes a subsidy worth half the project cost (maximum ₹10,000) and margin money equal to 10% of the project cost, while a partner bank funds the balance under its own lending norms. Applications are accepted on a rolling basis, with no closing date to meet.

• Project cost ceiling of ₹1,5 lakh0, with support starting at ₹15,000
• Subsidy of 50% of project cost, capped at ₹10,000 and not repayable
• HSFDC margin money and its loan component carry 4% interest per annum
• Principal recovery on the HSFDC loan starts 12 months after disbursement
• Open only to Scheduled Caste, BPL residents of Haryana with family income up to ₹1,80,000
• Rolling deadline — applications are accepted round the year

The scheme is reserved for Scheduled Caste applicants who live in Haryana and belong to Below Poverty Line households. Every one of the following conditions has to be satisfied:

• Resident of Haryana — this is a state-specific programme and does not extend to applicants from other states.
• Scheduled Caste category — caste status is checked while the application is processed.
• Below Poverty Line family — the household must be BPL.
• Annual family income of no more than ₹1,80,000 — households earning above this limit fall outside the scheme.
• Name included in the BPL Survey List — appearing in the survey is a stated requirement, not merely BPL status.

No DPIIT recognition or MSME registration is listed among the requirements. The proposed activity should be a viable income-generating micro-enterprise, whether located in a rural or an urban part of the state.

Trade and Business Sector Scheme (HSFDC) — Loans & Subsidy up to ₹1.5 Lakh is open to startups at any stage. It is open to startups registered anywhere in India.

Trade and Business Sector Scheme (HSFDC) — Loans & Subsidy up to ₹1.5 Lakh accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

HSFDC structures the assistance as a composite package rather than a single loan. The total project cost can reach ₹1,50,000, with the scheme's overall support range running from ₹15,000 to ₹1.5 lakh.

• Subsidy — covers 50% of the project cost, capped at a maximum of ₹10,000. This portion is non-repayable.
• Margin money — equal to 10% of the project cost, extended by HSFDC as a loan at 4% per annum.
• Bank loan — the remaining project cost, sanctioned by one of the Corporation's tie-up banks at interest rates decided by that bank's own lending policy.

Recipients also get a repayment breather. Principal recovery on the HSFDC loan component begins 360 days (12 months) after disbursement, while instalments on the other components may commence after 180 days. The combination is designed to help BPL entrepreneurs acquire both assets and working funds for self-employment ventures.

Trade and Business Sector Scheme (HSFDC) — Loans & Subsidy up to ₹1.5 Lakh is offered by Haryana Scheduled Castes Finance and Development Corporation, a government body. As a government-backed debt / loan, it is publicly funded and open to eligible startups across India.

Applications are screened in two stages. First, field staff appointed by HSFDC carry out checks to confirm that an applicant genuinely meets each condition — Haryana residency, Scheduled Caste status, BPL family status and the family income limit.

Cases that clear verification are sponsored to the Corporation's partner banks, which sanction the composite loan made up of the subsidy, the margin money and their own lending component. The bank then conducts its own due diligence and applies its lending policy before the loan is finally approved. Because the process involves both the Corporation and a bank, applicants should expect supporting documents and any surety details to be reviewed at more than one point.

Before you apply to Trade and Business Sector Scheme (HSFDC) — Loans & Subsidy up to ₹1.5 Lakh, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

Trade and Business Sector Scheme (HSFDC) — Loans & Subsidy up to ₹1.5 Lakh is best suited for startups in India seeking non-dilutive funding of ₹15,000 – ₹1.5L. If that describes your startup, review the eligibility criteria above before applying.