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Transport & Infrastructure; Business & Entrepreneurship

Transport Loan Scheme

"Transport Loan Scheme" aims to promote self-employment among target groups by providing term loans for Light Motor Vehicles. The scheme benefits Scheduled Castes, Other Backward Classes, Minorities, and Safai Karamcharis with financial assistance up to ₹5,00,000/-.

Authority

State/ UT

Region

Delhi

Status

Verified 2026

Updated

March 2026

What you get

The scheme provides term loans up to ₹5,00,000/- for the purchase of Light Motor Vehicles (LMVs). | _The loan is recovered in 60 monthly installments over a period of five years, with six months as a moratorium period._ | _Loans are disbursed subject to the completion of pre and post-sanction formalities._

Who can apply

The applicant should be from one of the following target groups - Scheduled Castes, Other Backward Classes, Minorities, and Safai Karamcharis.; The applicant should be a permanent resident of Delhi.; The applicant’s age should be between 18 to 45 years.; The annual family income of the applicants (under Scheduled Caste, Other Backward Classes & Minority category) from all sources should not exceed ₹1,20,000/- per annum.; For the creamy layer of the Minority category, the maximum income ceiling is ₹6,00,000/- per annum.; There is no income limit prescribed under the Safai Karamchari category.; Bonafide valid commercial driving licence & badge required (Light Motor Vehicle).; The applicant should have not been declared as a defaulter under any scheme of DSFDC, Nationalized Bank, Financial Institution, or Co-operative Bank etc.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What is the maximum loan amount available for applicants under this scheme?

The maximum loan amount available under this scheme is [?]5,00,000/- for the purchase of a vehicle.

What is the annual family income limit for applicants belonging to Scheduled Castes, Other Backward Classes, and Minorities?

The annual family income for applicants from Scheduled Castes, Other Backward Classes, and Minorities should not exceed [?]1,20,000/- per annum.

Is there an income limit for applicants from the Safai Karamchari category?

No, there is no income limit prescribed for applicants belonging to the Safai Karamchari category.

What type of driving license is required for applicants under this scheme?

Applicants must possess a valid commercial driving license (Light Motor Vehicle) and a badge to be eligible for the loan.

What is the processing fee for applying under this scheme?

The processing fee for applying under this scheme is [?]350/-, payable in favor of the Delhi SC/ST/OBC/Minorities & Handicapped Financial & Development Corporation.

What is the repayment period for the loan, and is there a moratorium period?

The loan is to be repaid in 60 monthly installments over five years, with a six-month moratorium period.

How many guarantors are required for the loan application?

The number of guarantors may vary depending on the loan amount, but at least one guarantor is required.

What is the maximum loan amount that requires post-dated cheques from the guarantor?

For loans above [?]2,00,000/-, the guarantor must provide five post-dated cheques.

What is the maximum income limit for applicants from the creamy layer of the Minority category?

Applicants from the creamy layer of the Minority category should not have an annual family income exceeding [?]6,00,000/-.

Can applicants who have defaulted on previous loans apply under this scheme?

No, applicants who have been declared defaulters under any scheme of the Delhi SC/ST/OBC/Minorities & Handicapped Financial & Development Corporation, nationalized banks, or other financial institutions are not eligible.