Direct Lending Scheme

Direct Lending Scheme is a Government of Punjab initiative implemented through the Punjab Backward Classes Land Development and Finance Corporation (PBSCFC). The scheme is designed to provide direct financial assistance (term loans) to individuals belonging to backward classes and economically weaker sections for setting up self-employment ventures.

The primary objective is to promote economic upliftment, entrepreneurship, and income generation among disadvantaged communities. For you as an MSME or first-time entrepreneur, this scheme provides accessible institutional finance to start or expand small businesses without relying on informal credit sources.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process

Key Features

Direct financing support: Unlike refinance models, loans are directly provided by the corporation to beneficiaries, simplifying access to funds.
Focus on disadvantaged groups: The scheme specifically supports backward classes, helping reduce economic inequality.
Wide activity coverage: You can start businesses such as retail shops, transport services, small manufacturing, or service units.
Affordable credit: Loans are offered at concessional rates, making repayment manageable.
Self-employment promotion: The scheme is aimed at helping individuals become financially independent.

Financial Assistance

Component	Assistance Provided	Detailed Explanation
Loan Amount	Up to ~₹10–15 lakh (depending on activity)	Financial assistance is provided based on project type. Example: Small business or transport unit financing.
Interest Rate	Concessional	Lower than market rates to support weaker sections.
Margin Contribution	Required (as per norms)	Beneficiary contributes a small portion of project cost.
Repayment Period	3–7 years	Structured repayment based on income generation.
Purpose	Self-employment activities	Includes business setup, equipment purchase, or service activities.

Eligibility Criteria

Applicant must belong to Backward Classes (BC) / eligible categories
Must be a resident of Punjab
Must fall under prescribed income limits
Age typically between 18–55 years
Must propose a viable self-employment project
Should not be a defaulter of any financial institution

Non-eligibility conditions:

Applicants above income ceiling
Defaulters or financially irregular applicants
Non-viable business proposals

Documents Required

Aadhaar Card
Residence Proof (Punjab)
Caste Certificate (BC category)
Income Certificate
Age Proof
Project Report
Bank Account Details
Passport-size Photograph

Application Process

Option 1: Apply with Bullit, Recommended

Start instantly with our guided application support, where our team verifies eligibility, prepares documentation, and coordinates with the Industries Department on your behalf. Using our business loans and compliance calendar, you can track progress while focusing on project execution, we manage the application end-to-end.

Option 2: Apply Online / Offline (Government Process)

Visit official PBSCFC website or office
Obtain application form
Fill personal and project details
Attach required documents
Submit application to district office
Application is verified and evaluated
Loan is sanctioned
Funds are disbursed
Repayment as per schedule