Delhi Self Employment Loan Scheme (DSFDC Transport Loan Scheme)

What is the Delhi Self Employment Loan Scheme?

The Delhi Self Employment Loan Scheme is the popular name for the Transport Loan Scheme of the Delhi SC/ST/OBC/Minorities & Handicapped Finance & Development Corporation (DSFDC), a fully owned undertaking of the Government of NCT of Delhi. In Hindi the corporation calls it Parivahan Rin Yojana.

According to the DSFDC scheme document, different National Apex Corporations provide a term loan to DSFDC as part of the total project cost demanded by applicants on a case-to-case basis, and the corporation has been implementing the Transport Loan Scheme under the LMV category up to a maximum loan limit of Rs 5,00,000 for target-group residents of Delhi. The document states the objective in one line: to promote self-employment among beneficiaries of the target groups.

In practice this is the DSFDC product people use to buy a taxi, a three-wheeler, an e-rickshaw or another light motor vehicle and drive it for a living. The loan is sanctioned and disbursed only after pre-sanction and post-sanction formalities are completed, so the vehicle is bought after the sanction, not before.

DSFDC itself was incorporated on 29 January 1983 under the Companies Act, 1956, with an authorised share capital of Rs 100 crore, and acts as the State Channelising Agency in Delhi for NSFDC, NSTFDC, NSKFDC, NMDFC, NBCFDC and NHFDC. It runs from Ambedkar Bhawan, Rohini, with three branch offices covering Delhi's 11 revenue districts.

Who is eligible for the Delhi Self Employment Loan Scheme, and who is not?

Target groups. The scheme document names four: Scheduled Castes, Other Backward Classes, Minorities and Safai Karamcharis.

You can apply if:

• You are a permanent resident of Delhi and possess a ration card or voter identity card.
• You have an Aadhaar card, the document says Aadhaar is mandatorily required.
• Your age is between 18 and 45 years.
• Your annual family income from all sources is within Rs 1,20,000 if you apply under the SC, OBC or minority category. For creamy-layer minority applicants the maximum income ceiling is Rs 6,00,000 per annum. No income limit is prescribed for the Safai Karamchari category.
• You hold a bona fide valid commercial driving licence and badge (LMV).
• You have not been declared a defaulter under any scheme of DSFDC, a nationalised bank, a financial institution or a co-operative bank.

You cannot apply, or are not eligible, if:

• You are outside the four target groups. Scheduled Tribe applicants are not listed in the target groups for this particular scheme, although DSFDC is the channelising agency for NSTFDC and covers ST applicants under other schemes; ask the branch which product fits.
• You are under 18 or over 45. The age band here is narrower than the 18-to-50 band used for Dilli Swarojgar Yojana and the Composite Loan Scheme.
• You do not hold a commercial LMV licence and badge. A private driving licence is not enough.
• Your family income exceeds Rs 1,20,000 (or Rs 6,00,000 for a creamy-layer minority applicant).
• You are not a permanent resident of Delhi, or cannot produce a Delhi ration card or voter ID.
• You are a defaulter with DSFDC, a nationalised bank, a financial institution or a co-operative bank.

A special rule for Safai Karamcharis. For this category DSFDC treats the following as eligible for financial assistance under NSKFDC schemes: scavengers and Safai Karamcharis and their dependants identified under the National Scheme for Liberation and Rehabilitation of Scavengers through a survey; registered co-operative societies of Safai Karamcharis; and legally constituted associations or firms promoted by the target group. Eligibility can be evidenced by a certificate from a local revenue officer, a local municipal officer, a cantonment executive officer, a railway officer, or the head of a government department such as schools, colleges, forest, health, education or animal husbandry of rank not below gazetted officer, or an elected member of a municipal body, a gram panchayat pradhan, or a regional manager of a regional rural or nationalised bank. A person identified as a manual scavenger in a survey under the MS Act, 2013, whose name appears in the final list prepared by the state or UT administration at mssurvey.nic.in, need not produce any certificate at all.

How much is the loan and how is it repaid?

Loan amount. Up to Rs 5,00,000 under the LMV category. The loan is need-based and sized against the vehicle quotation you submit, so the sanction can be lower than the ceiling.

Repayment. The DSFDC document is explicit: the loan is recovered in 60 monthly instalments over a period of five years with six months as moratorium period. The corporation's standard terms and conditions require 60 plus 5 post-dated cheques drawn on a nationalised bank for schemes other than the Composite Loan Scheme, which matches the 60-instalment schedule.

Interest. The scheme document does not publish a rate of interest, and this guide does not quote one. DSFDC's rate on transport loans depends on the terms on which the relevant national apex corporation: NSFDC, NBCFDC, NMDFC or NSKFDC: refinances the case. Ask the branch for the rate applicable to your category in writing, and check it against the sanction letter before you sign.

Security. DSFDC requires a permanent guarantor employed in a government, PSU, semi-government or local body office in Delhi or the National Capital Region, with at least six years of service remaining, so that the instalments can be recovered if the borrower defaults. In place of a guarantor, the applicant may offer collateral security — original immovable property documents with the complete chain, or original NSC, KVP or FDR with a face value of 75 percent of the sanctioned loan together with a lien letter from the authorised authority in favour of DSFDC.

What documents are required?

Pre-sanction, with the application:

1. Loan application form, duly filled and signed.
2. Five passport-size photographs of the applicant.
3. Copy of voter ID, Aadhaar card and ration card.
4. Copy of age proof; age must be between 18 and 45 years.
5. Copy of the commercial driving licence and badge (LMV).
6. Income certificate issued by the SDM of the area concerned, for SC, OBC and minority applicants.
7. Affidavit declaring that no loan has been availed from any bank or financial institution.
8. Quotation of the vehicle.
9. Processing fee of Rs 350 by demand draft in favour of DSFDC.
10. Affidavit for personal guarantee.
11. Affidavit of the legal heir of the applicant, with the heir's ID copy and one passport-size photograph.
12. Caste certificate issued by the SDM concerned for SC and OBC applicants; for the minority category an affidavit indicating caste or religion; and for Safai Karamcharis, the certificate route described above.

Post-sanction:

1. Four passport-size photographs of the guarantor.
2. Guarantor's undertaking and details.
3. Latest pay slip of the guarantor.
4. Copy of the guarantor's office identity card.
5. Copy of the guarantor's ration card, voter ID or Aadhaar.
6. Copy of the guarantor's age proof.
7. Guarantor's affidavit.
8. Five post-dated cheques of the guarantor, where the loan is above Rs 2,00,000.
9. ECS mandate form duly filled in the prescribed format.
10. ID proofs of two local witnesses, who must be physically present at the time of signing the deeds.
11. Copies of Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana.
12. Group photograph with the applicant, guarantor, witnesses, scheme in-charge and dealing assistant.

How to apply for the Delhi Self Employment Loan Scheme

1. Get the commercial licence and badge first. A valid commercial LMV licence and badge is both an eligibility condition and a listed document. If you do not have it, obtain it from the Delhi Transport Department before you start the loan file.
2. Collect the application form from the DSFDC head office at Ambedkar Bhawan, Institutional Area, Sector-16, Rohini, Delhi-110085, or from the Raj Pur Road, Nand Nagri or Mangol Puri branch office. The form can also be downloaded from the corporation's website.
3. Obtain the SDM income certificate and the caste certificate from the SDM of your area. Minority applicants file the affidavit indicating caste or religion; Safai Karamchari applicants use the certificate route, or nothing at all if their name is in the mssurvey.nic.in final list.
4. Take a dealer quotation for the vehicle. The loan is sized against this quotation, so get it on the dealer's letterhead with the model, variant and on-road price.
5. Line up the guarantor or the collateral. A serving government, PSU, semi-government or local body employee in Delhi or the NCR with at least six years of service left, or property documents, or NSC, KVP or FDR worth 75 percent of the loan.
6. Buy a demand draft of Rs 350 in favour of DSFDC towards the processing fee and attach it to the file.
7. Submit the application at the branch office for your district and take a dated acknowledgement. Central Zone at 2-Battery Lane, Rajpur Road covers Central, North, New Delhi, South and South-East districts. The Mangolpuri branch at Ambedkar Bhawan, Rohini covers West, North-West and South-West. The Nand Nagri branch at A-Block, Bunkar Vihar, opposite Gagan Cinema covers East, North-East and Shahdara.
8. Complete the post-sanction formalities in person. Bring the guarantor with the pay slip and office ID, the two local witnesses with ID proof, the ECS mandate and the post-dated cheques. The deeds are signed with the witnesses physically present.
9. Buy the vehicle and register it after disbursement, and start repaying from the end of the six-month moratorium, in 60 monthly instalments.

How do you check the status of your application?

There is no online tracker for this scheme; it is a branch-level file.

• Your branch office holds the case. Central Zone: 011-23979068 and 011-23925477. Mangolpuri: 011-23925477 and 011-27574321. Nand Nagri: 011-22137953 and 011-22130159.
• Head office, Ambedkar Bhawan, Rohini: 011-27574377 and 011-27574321, email dsfdcdelhi@gmail.com.
• Entrepreneur Guidance Cell. DSFDC's citizen's charter records that each branch runs one from 10.00 a.m. to 3.00 p.m. for scheme information, the practical place to get a half-built file checked before submission.

Carry the acknowledgement receipt with its date every time. Because sanction and disbursement both depend on completing formalities, knowing exactly which document is holding up your file is more useful than a general status enquiry.

Why applications get rejected, and how to fix them

• No commercial licence or badge. The single most common bar. A private LMV licence does not satisfy the condition; you need the commercial licence with the badge.
• Age over 45. This scheme stops at 45, unlike DSFDC's shop-and-trade schemes which run to 50. An applicant aged 46 to 50 should look at Dilli Swarojgar Yojana, which also finances the purchase of three-wheelers and taxis.
• Income certificate above Rs 1,20,000. Only creamy-layer minority applicants get the Rs 6 lakh headroom, and only Safai Karamcharis have no ceiling at all.
• Guarantor with less than six years of service left. The requirement exists so DSFDC can recover instalments from salary; a guarantor nearing retirement is refused. Substitute collateral if you cannot find a younger guarantor.
• Collateral short of 75 percent. NSC, KVP or FDR must have a face value of at least 75 percent of the sanctioned amount, and the lien letter from the issuing authority must accompany it.
• Vehicle bought before sanction. The loan is disbursed against a quotation after pre-sanction formalities; a vehicle already purchased with private money does not fit the flow.
• Default history. A default with DSFDC, a nationalised bank, a financial institution or a co-operative bank ends the case.
• Witnesses absent at deed signing. Two local witnesses must be physically present with ID proof; a photocopy sent through a relative will not do.

What are the key dates and the current position?

The Delhi Self Employment Loan Scheme has no application window and no last date. DSFDC receives applications through the year, and the scheme document notes that the loan is sanctioned or disbursed subject to completion of pre and post-sanction formalities by the applicant, which means your own paperwork, not a calendar, sets the timeline.

The three dates that will matter to you after sanction are the date of disbursement, the end of the six-month moratorium, and the 60 monthly instalments that follow over five years. Note them on your sanction letter.

The scheme is funded through the national apex corporations, so the categories, income ceilings and terms can be revised when those corporations revise their own guidelines. Confirm the current position at the branch counter before you spend money on affidavits and certificates.

How do you raise a grievance?

Write first to the branch office holding the file, attaching the acknowledgement receipt and stating what has not moved. If that fails, escalate to the Managing Director, DSFDC, Ambedkar Bhawan, Institutional Area, Sector-16, Rohini, Delhi-110085, telephone 011-27574377 or 011-27574321, email dsfdcdelhi@gmail.com.

If the corporation still does not respond, use the Government of NCT of Delhi's public grievance system, and file an RTI application with the Public Information Officer of DSFDC to obtain the recorded reasons on your file. The corporation's website carries an RTI section and an RTI Manual-17 page.

One caution about middlemen. Vehicle dealers sometimes offer to "arrange" a DSFDC sanction for a commission. The only money payable to the corporation under this scheme is the Rs 350 processing fee by demand draft; the form itself is issued from the counter, and no agent has any standing in the sanction process.