District Industries Centre (DIC) Loan Scheme
The DIC Loan Scheme (District Industries Centre Loan Scheme) in Maharashtra is intended to facilitate self-employment and small enterprise creation in rural and semi-urban areas by providing margin money / seed money support for tiny units (with restricted capital investment). It is implemented at the district level via DICs under the Directorate of Industries, Maharashtra
Key Features
Coverage limited to small / tiny units: The scheme is meant for very small units (often called “tiny industries”) rather than large industrial setups. This ensures that the benefits go to grassroots entrepreneurs
Maximum investment / plant & machinery ceiling: The unit’s investment in plant & machinery should not exceed ₹2 lakhs.
Margin Money / Seed Money assistance ratio: For general category entrepreneurs: up to 20% of total investment or ₹40,000, whichever is less. For SC / ST entrepreneurs: up to 30% of total investment or ₹60,000, whichever is less.
Interest rate and repayment terms: The scheme prescribes an interest rate of 4% per annum on the assistance provided. The loan / assistance is repayable over 7 years.
Moratorium / repayment holiday period: The scheme allows a moratorium / grace period before repayment starts — in many cases this is 6 months, but in some descriptions “repayment starts after three years in 4 yearly instalments” is mentioned (for seed money scheme) — this needs to be clarified locally.
Lower threshold towns / rural areas only: The scheme applies to towns / villages having population less than 1 lakh (as per 2011 or latest census). This condition ensures support is directed to less urbanized areas.
Special category benefits: SC, ST, OBC, NT/VT, handicapped etc. often get more favourable treatment (higher share, lower threshold) under the scheme.
Financial Assistance Under the Scheme
Component | Assistance Provided | Explanation |
Margin / Seed Money (General category) | Up to 20% of total fixed capital investment or ₹40,000, whichever is less | If your machinery costs ₹1,50,000, then 20% = ₹30,000 will be given as assistance under the scheme. |
Margin / Seed Money (SC / ST) | Up to 30% of investment or ₹60,000, whichever is less | For SC entrepreneurs buying machinery worth ₹2,00,000, 30% = ₹60,000 is eligible (₹60,000 is the cap). |
Interest Rate | 4% p.a. | The subsidy is a soft loan at a concessional interest rate of 4%. |
Repayment Tenure | 7 years | The beneficiary must repay over a maximum period of 7 years. |
Moratorium / Grace Period | Typically 6 months (or as per local conditions) | The initial period during which repayment is not required (for some units). |
Population / Location Restriction | Towns / villages with population < 1 lakh | Only units in smaller towns / rural areas qualify |
Eligibility for the Scheme
Who can apply:
- Individuals or enterprises located in rural / semi-urban / towns with population less than 1 lakh
- Investment in plant & machinery must be less than or equal to ₹2 lakh.
- Must fall under qualifying sectors: tiny units, handicraft, village industries, small-scale / rural units.
- SC / ST / OBC categories get preferential assistance under the scheme
Who cannot apply:
- Units located in urban / large cities beyond population threshold
- Enterprises with existing defaults or non-viable credit history
- Units not in eligible sectors (outside rural / tiny / village industries)
Documents Required
- Domicile / identity proof
- Caste certificate (if applicable)
- Business / enterprise registration / license / industry certificate
- Investment / quotation / invoices for machinery / plant (if any)
- Project summary or micro business plan
- Bank account / passbook
Application Process for the Scheme
Option 1: Apply with Bullit (Recommended)
Click here to start instantly with guided support. Our team will assess your eligibility, help you prepare documents, and file the application on your behalf. We coordinate with the DIC and monitor the progress.
Recommended for: Applicants who prefer handholding in the entire process.
Option 2: Apply via District Industries Centre (DIC)
- Visit your District Industries Centre office (or its official website).
- Obtain the application form for DIC Loan / Seed Money / Margin Money scheme.
- Prepare required documents (identity, address, project plan, cost estimate, certificates).
- Submit the form at the DIC office / nodal office.
- The DIC will scrutinize, verify, and forward the subsidy / margin assistance to the applicant or to the bank.
- After sanction, the project kicks off; repayment begins after moratorium.
