This scheme has been discontinued and is no longer accepting applications.

LoanDelhi Finance Corporation (DFC), Dept. of Finance, Govt. of NCT of DelhiVerified 21 May 2026

Delhi Finance Corporation — MSME Term Loan

The Delhi Finance Corporation MSME Term Loan scheme is not active as the corporation is undergoing a winding-up process.

Maximum amount

₹50.0L

Typical payout

₹15.0L

Processing time

8–20 weeks

Application window

Rolling — apply at any DFC branch.

Check if your startup qualifies for Delhi Finance Corporation — MSME Term Loan

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Eligibility criteria

Company type: Private Limited, LLP, Proprietorship, Partnership Firm
Stage: Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr)
States: Delhi
Sectors: manufacturing, food_processing, textile, leather, chemicals, engineering, services, other
Prerequisites: Udyam (MSME) registration required

Documents required

Udyam Registration Certificate

Active Udyam Registration confirming MSME status. DFC lending is restricted to Micro and Small enterprises under this programme.

Tip: Ensure MSME category is correctly reflected. Udyam investment figures are used by DFC to cross-check asset base.

Entity Constitution Documents

Certificate of Incorporation (Pvt Ltd/OPC), Partnership Deed, or equivalent entity formation document confirming the borrowing entity.

Tip: The borrower entity must match the Udyam certificate entity. Any mismatch causes application rejection.

Aadhaar Cards (All Promoters)

Aadhaar cards of all directors, partners, or promoters for KYC verification by DFC.

Tip: Submit masked Aadhaar. All promoters with shareholding must submit KYC individually.

PAN Cards (Entity + Promoters)

Entity PAN and individual promoter PAN cards for financial identity and credit check.

Tip: DFC runs CIBIL checks on all promoters — ensure no overdue loans or defaults before applying.

Detailed Project Report (DPR)

Comprehensive project report covering project cost breakdown (land, building, plant & machinery), means of finance, production capacity, technology, market analysis, and 5-year financial projections including Debt Service Coverage Ratio (DSCR) calculation.

Tip: DFC underwriters focus on DSCR — ensure projections show DSCR >1.25 throughout the repayment period. A DFC-accepted DPR typically has 30–40 pages including financial model.

Delhi Premises Proof

DSIIDC allotment letter or registered lease for the Delhi manufacturing/business unit. DFC loans are restricted to units physically operating in NCT of Delhi.

Tip: DSIIDC allotment is preferred — DFC processes DSIIDC-allottee loans faster as the premises collateral is well-documented.

Bank Statement (12 Months)

12-month statement of all entity bank accounts showing business turnover, existing loan servicing, and financial health.

Tip: Consolidate statements from all accounts. Healthy account conduct (no cheque returns, regular credits) strengthens the DFC credit assessment.

Audited Financial Statements (2 Years or From Inception)

Audited balance sheet and P&L for the most recent 2 financial years, or from incorporation for newer units. DFC uses this to assess repayment capacity.

Tip: New units without a full financial year may submit CA-certified provisional accounts, but must show a credible cash-flow projection.

Plant and Machinery Quotations

Vendor quotations for assets to be purchased with the DFC loan. Required to validate the loan utilisation plan.

Tip: Get quotations from at least 2 vendors per major asset category — DFC may ask for comparative quotes. These become purchase orders post-sanction.

Bank Account Details (Cancelled Cheque)

Cancelled cheque for the entity current account into which DFC will disburse the loan and from which EMIs will be collected.

Tip: DFC typically mandates an ECS mandate from this account for auto-debit of EMIs.

Caste / Women Founder Proof (For Concession)

Conditional — SC/ST promoters claiming the 2% interest concession must submit a government caste certificate showing majority ownership. Women entrepreneurs claiming 1% concession must submit shareholding proof of majority women ownership.

Tip: Submit both caste certificate and shareholding certificate for SC/ST women entrepreneurs — they qualify for the higher 2% concession as SC/ST, not the 1% women concession (cannot stack both).

How to apply for DFC Loan

Prepare a comprehensive DPR with 5-year financial projections and DSCR calculation — a good DPR is the single most important factor in DFC loan approval.

Visit the nearest DFC branch (main office: Nehru Place, New Delhi) and submit the loan application with all documents — DFC also accepts online applications on the DFC portal.Open portal

DFC conducts credit assessment: background check on promoters, CIBIL check, site visit to verify premises, and DPR financial analysis — 4–8 weeks.

DFC credit committee sanctions the loan with terms — sanction letter specifies amount, rate (with applicable concessions), tenure, and moratorium period.

Sign the loan agreement and provide security (hypothecation of assets, personal guarantees from promoters, and/or property mortgage).

Loan disbursed in tranches against asset purchase invoices — DFC may disburse directly to machinery suppliers for major assets.

Frequently asked questions

Who is eligible for DFC Loan?

DFC Loan is available to Private Limited, LLP, Proprietorship, Partnership Firm companies at the Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr) stage, across Delhi. Udyam (MSME) registration is required.

How much funding does DFC Loan provide?

DFC Loan provides up to ₹50.0L. Most applicants receive around ₹15.0L.

How long does DFC Loan approval take?

The typical processing time from submission to disbursement is 8–20 weeks.

Is DFC Loan currently accepting applications?

DFC Loan has been discontinued and is no longer accepting applications.

Do I need Udyam registration for DFC Loan?

Yes, Udyam (MSME) registration is required. Register at udyamregistration.gov.in before applying.

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Information is based on publicly available scheme guidelines. Last verified 21 May 2026. Always verify with official sources before applying.