Transport Loan Scheme (DSFDC) — ₹5 Lakh Loans for Delhi Self-Employment — Frequently Asked Questions

Eligible applicants can receive a term loan of up to ₹5,00,000, sanctioned specifically for the purchase of a Light Motor Vehicle. The amount is released to your account after the sanction letter is issued and the remaining formalities are completed.

The scheme is reserved for people belonging to Scheduled Castes, Other Backward Classes, Minority communities or Safai Karamcharis, and you must be a permanent resident of Delhi. You also need to be between 18 and 45 years of age.

Yes, for most categories. SC, OBC and Minority applicants must have an annual family income of no more than ₹1,20,000. Minority applicants falling in the creamy layer have a separate, higher ceiling of ₹6,00,000 per year. Safai Karamchari applicants are exempt — no income limit applies to them.

Yes. A bonafide valid commercial driving licence together with the badge for Light Motor Vehicles is mandatory. Without both, your application will not meet the scheme's requirements.

No. The scheme runs on a rolling, always-open basis, so you can apply at any point in the year rather than waiting for a specific application window.

The loan is recovered in 60 equal monthly instalments over a five-year period. You also get a six-month moratorium, which means repayments do not start immediately after disbursement.

No. This is a debt product, not an equity investment. DSFDC does not take a stake in your business or vehicle in return for the money — you repay the sanctioned amount through the monthly instalments agreed at sanction.

The loan is sanctioned for acquiring a Light Motor Vehicle, which you then use for transport-based self-employment. The whole purpose of the scheme is to help you start or expand a transport-related livelihood.

You can pick up the form from any DSFDC branch office — Rajpur Road, Mangolpuri or Nand Nagri — or from the DSFDC headquarters at Rohini. The prescribed format can also be downloaded and printed from the official DSFDC website. Completed forms are submitted at the nearest branch or headquarters.

You fill in the prescribed application form, affix a passport-sized photograph and attach self-attested copies of the necessary supporting documents. A processing fee of ₹350 is payable by Demand Draft in favour of DSFDC. After sanction, you may also need to provide guarantor details, post-dated cheques where applicable, and group photographs.

No. Anyone declared a defaulter under a scheme of DSFDC, a nationalised bank, a financial institution or a co-operative bank is not eligible. DSFDC verifies this as part of its review.

DSFDC reviews it against the eligibility criteria, checks that the documents are complete, and confirms you have no default history with DSFDC, a nationalised bank, a financial institution or a co-operative bank. Approved applicants then receive a loan sanction letter.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Transport Loan Scheme (DSFDC) — ₹5 Lakh Loans for Delhi Self-Employment, though having it can strengthen your application and unlock other benefits.

Transport Loan Scheme (DSFDC) — ₹5 Lakh Loans for Delhi Self-Employment is open to startups at any stage. It is open to startups registered anywhere in India.

Transport Loan Scheme (DSFDC) — ₹5 Lakh Loans for Delhi Self-Employment is offered by Delhi SC/ST/OBC/Minorities/Handicapped Financial and Development Corporation (DSFDC), a government body. It is provided as non-dilutive funding.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.