Refinance Scheme for Small Road Transport Operators

Operating a road transport service requires sufficient funds which may be difficult to meet for a road transport operator. If you too are planning to open a road transporting service or are already in the business, the government’s Refinance for Small Road Transport Operators scheme is the perfect match for you.

Overview

The Refinance for Small Road Transporter Operators scheme is a government scheme set-up to provide hassle-free funds to road transport operators. Timely availability of funds and assistance on various expenditures helps maintain the smooth functioning of this type of business.

Benefits

How does an operator benefit from this scheme?

This scheme helps an operator meet expenditures on:

  • Cost of chassis
  • Body building of the vehicle
  • Initial taxes or insurance
  • Working capital by providing assistance to refinance the current loans

Eligibility Criteria

What is the eligibility criteria to apply for this scheme?

The following is the eligibility criteria for this scheme:

  • All Small Road Transport Operators as defined in the MSMED Act, 2006
  • An individual or an association desirous of owning new transport vehicle(s), for carrying passengers or goods on hire.
  • The borrower should not have defaulted in repayment of loan of any bank / institution

Application

How can a road transport operator apply for this scheme?

A road transport operator can apply for this scheme through:

  • State Financial Corporations (SFCs)
  • SIDCs
  • Banks

For more information on this scheme click here.