Composite Loan Scheme-Delhi

If you are a new MSME business owner in Delhi, the Composite Loan Scheme is here to help you get started. This scheme is managed by the Delhi SC/ST/OBC/Minorities/Handicapped Financial & Development Corporation (DSFDC). It aims to empower entrepreneurs from Scheduled Castes, Scheduled Tribes, Other Backward Classes, Minorities, and Persons with Disabilities. By offering easy access to finance, the scheme promotes self-employment, economic independence, and social inclusion for these groups.

What is the Composite Loan Scheme?

The Composite Loan Scheme is a financial support initiative launched by the Delhi government through the Delhi SC/ST/OBC/Minorities/Handicapped Financial & Development Corporation (DSFDC). It’s designed specifically for individuals like you, belonging to marginalized communities in Delhi, who want to start or grow a small business. 

This need-based loan covers both term loan and working capital requirements in a single application, making it easier to access funds for income-generating activities. Whether you're planning to open a shop, start a service business, or purchase a commercial vehicle, the scheme offers the financial push you need to turn your entrepreneurial dreams into reality.

Objectives of the Composite Loan Scheme

• To support you in starting or expanding your small business or self-employment venture.
• To provide financial inclusion and promote economic independence among marginalized communities.
• To encourage entrepreneurship and self-reliance in Delhi.
• To simplify the loan process by combining term loan and working capital into a single facility.

Key Features of the Composite Loan Scheme

• You can apply if you belong to Scheduled Caste, Scheduled Tribe, Other Backward Classes, Minorities, or are a Person with Disabilities.
• The maximum project cost covered by the loan is up to Rs. 25 lakh.
• You are eligible to receive up to ₹3,00,000 if you are from the SC category, and up to ₹1,00,000 if you fall under OBC, Minority, or PwD categories.
• You get a flexible maturity period, typically up to 5 years, depending on your project and DSFDC guidelines.
• You benefit from an interest rate set as per DSFDC norms, which is usually competitive compared to other government schemes.
• You can use the loan for both term loan needs like purchasing fixed assets and for working capital to manage your daily business operations.
• You don’t need to provide any collateral for most small loans under this scheme, making it easier for you to access funds.
• You are required to maintain a debt-equity ratio of 3:1, meaning for every ₹3 loaned, you contribute ₹1 as margin money.
• You must arrange margin money of 25-30% based on the geographical location of your enterprise.

Financial Assistance Offered Under the Scheme

The maximum project cost covered by the loan under this scheme is up to Rs. 25 lakh.

Loan Amount Table:

Eligibility Criteria for Composite Loan Scheme

Eligibility

You are eligible if:

• You belong to the SC, ST, OBC, Minority, or PwD category.
• You are a resident of Delhi.
• Your age is between 18 and 50 years.
• Your total annual family income does not exceed ₹1,20,000.
• You have a proper workplace (owned or rented) for your business.
• You are not a defaulter under any Delhi SC/ST/OBC/Min. & Handicapped Finance & Development Corp. Ltd (DSFDC) scheme.
• You are willing to start an income-generating activity as per scheme guidelines.

Note:

You can use the loan for a wide range of activities, such as:

• Shops (vegetable, fruit, kiryana, bakery, dairy, stationery, chemist, etc.)
• Service businesses (photostat, cyber café, laundry, beauty parlour, tailoring, etc.)
• Manufacturing (non-polluting, permissible under the Delhi Master Plan)
• Purchase of vehicles (three-wheelers, taxis)
• Any other approved income-generating activity

Non-eligibility

You are NOT eligible if:

• You are not a resident of Delhi.
• Your annual family income exceeds ₹1,20,000.

Documents Required for Composite Loan Scheme

• Duly filled loan application form (available at DSFDC offices or website).
• Aadhaar card (identity and residence proof).
• Caste certificate (or affidavit, if applicable).
• Proof of age.
• Proof of income (salary slip, income certificate, etc.).
• Proof of workplace (ownership/rental agreement).
• Bank statement (last 6 months).
• Udyam Aadhaar (for MSMEs).
• GST registration (if applicable).
• Tax returns (if applicable).

How to Apply for the Composite Loan Scheme?

Step 1: Obtain the loan application form from the nearest DSFDC branch or download it from the official DSFDC website.

Step 2: Fill in all required details and attach the necessary documents.

Step 3: Submit the completed application form and documents to the Delhi SC/ST/OBC/Min. & Handicapped Finance & Development Corp. Ltd (DSFDC) office.

Step 4: DSFDC will verify your eligibility and documents.

Step 5: If approved, you will be notified, and the loan amount will be disbursed as per the scheme guidelines.

Benefits of the Composite Loan Scheme

• Single Window for Finance
  You get both term loans and working capital in one application, making the process simple and quick.
• Low Interest and Flexible Repayment
  Interest rates are competitive, and repayment terms are designed to suit small businesses.
• Promotes Social Inclusion
  The scheme is focused on supporting marginalized communities, helping you become self-reliant and economically independent.
• No Collateral Requirement
  Most loans do not require collateral, reducing your risk and making it easier to access funds.

Real-World Examples of Composite Loan Scheme

• Vegetable/Fruit Shop Owner
• Tailoring Shop Entrepreneur
• Chemist Shop Startup
• Commercial Vehicle Purchase for Self-Employment

Related Government Support Plans with Composite Loan Scheme

Final Words

If you’re a new MSME owner from a marginalized community in Delhi, the Composite Loan Scheme can be your stepping stone to success. Designed with inclusivity and empowerment in mind, this scheme offers easy, collateral-free access to funds for both starting and scaling your business. With simplified processes, supportive terms, and a focus on self-reliance, it’s not just a loan, it’s a lifeline to financial independence and long-term growth. Take the first step toward building your dream venture today!