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Marlin Priya

Expert

Published on: Jul 30, 2026

District Industries Centre Loan Scheme

The State Government Departments have implemented various schemes to generate self-employment opportunities for unemployed youth. Besides these departments, the Directorate of Industries introduced the

Prime Minister’s Employment Generation Programme (PMEGP), Seed Money Scheme and District Industries Centre Loan Scheme for the unemployed youth through its District Industries Centers at District Level and Joint Director of Industries. The State Government of Maharashtra focused the rural areas of the state for the implementation of the scheme to promote self-employment and eradicate unemployment. In this article, we look at the District Industries Centre loan scheme in detail.

Scheme Overview

Under the scheme, the financial assistance is provided in the form of margin or seed money in the total cost of the project with an intent to encourage mini industries envisaging to generate

self-employment or other employment opportunities in semi-urban and rural areas of Maharashtra. The scheme is implemented by the General Manager (District Industries Centre of the respective district) at the district level. The assistance of 20% of the total investment or Rs.40,000 whichever is less is provided for the General category. For SC or ST category either Rs.60,000 or 30% assistance of fixed capital investment whichever is less will be offered. The rate of interest for the loan as per the State Government is 4%. The scheme allows a maximum period of 7 years for the repayment of the loan. The highly benefitted community of the scheme is the rural artisans.

Eligibility

  • The Entrepreneur should be a resident of Maharashtra for at least 15 years
  • To be eligible for the scheme, the investments of the unit should not exceed Rs.2 lakhs
  • The scheme covers only those towns and villages that have a population less than Rs.1 lakh
  • Village industry board, small-scale industry board, handloom, handicraft, silk and coir industry are also eligible under this scheme

Documents Required

  • Educational certificates (minimum qualification- Std VIII pass)
  • Domicile in the state of Maharashtra for the last 15 years
  • Birth Certificate
  • Caste Certificate
  • Bank passbook
  • Industry license (for the existing industry of the beneficiary- if applicable)
  • Complete plan of industry (if beneficiary establishing a new industry in future)
Note: The collateral security had been a mandatory document as per the Joint Directors of the industry, which has now been made optional.

Application Form

The application form will be available with the official body of the scheme and in nationalized banks. The copy of the application form is given below:

Contact:

For Further Information about the scheme contact the following:

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Frequently Asked Questions

Common questions about District Industries Centre Loan Scheme Maharashtra.

The District Industries Centre Loan Scheme is a financial assistance program implemented by the Government of Maharashtra to promote self-employment and mini industries in semi-urban and rural areas. It provides margin or seed money up to 20% of the total project cost or Rs. 40,000 (whichever is less) for the general category, and up to 30% or Rs. 60,000 (whichever is less) for SC/ST categories.
To be eligible for the scheme, the entrepreneur should be a resident of Maharashtra for at least 15 years, and the total investment in the proposed unit should not exceed Rs. 2 lakhs. The scheme covers only those towns and villages that have a population less than 1 lakh. Additionally, village industries, small-scale industries, handloom, handicraft, silk, and coir industries are also eligible.
The required documents include educational certificates (minimum qualification - Std VIII pass), proof of domicile in Maharashtra for the last 15 years, birth certificate, caste certificate, bank passbook, industry license (if applicable), and a complete plan of the proposed industry.
The application form is available at the official bodies of the scheme, such as District Industries Centers, nationalized banks, Khadi and Village Industries Boards, Nagar Palikas, and Gram Panchayats.
The interest rate for the loan under this scheme is 4% as per the State Government of Maharashtra.
The scheme allows a maximum period of 7 years for the repayment of the loan.
The highly benefitted community of the District Industries Centre Loan Scheme is the rural artisans.
No, collateral security is now optional for the District Industries Centre Loan Scheme, as per the Joint Directors of the industry.
For further information about the scheme, you can contact the District Industries Centers of the respective district, nationalized banks, Khadi and Village Industries Boards, Nagar Palikas, or Gram Panchayats.
The total investment in the proposed unit should not exceed Rs. 2 lakhs to be eligible for the District Industries Centre Loan Scheme.