The Delhi government offers collateral-free loans of up to ₹3 lakh to youth; find out how to apply..

Rajiv Gandhi Swavlamban Rozgar Yojna (Delhi): The Rajiv Gandhi Swavlamban Rozgar Yojna offers an excellent opportunity for youth, artisans, and professionals in Delhi who dream of starting their own businesses or service centers. Administered by the Delhi Khadi and Village Industries Board (DKVIB), the scheme primarily aims to foster self-reliance among school and college dropouts, skilled artisans, and aspiring entrepreneurs. Financial assistance is provided under this scheme to both new and established small businesses.

What financial aid and subsidy are available under the scheme?
Loans of up to ₹3 lakh are provided under this scheme. The Delhi Government offers a subsidy of 15% of the project cost, capped at a maximum of ₹7,500. Applicants from the general category are required to contribute at least 10% of the total loan amount themselves. For individuals belonging to weaker sections—such as SC, ST, and OBC communities, persons with disabilities (PwD), women, and ex-servicemen—the mandatory contribution is only 5%.

Partnership Projects
If multiple individuals start a business together, the 15% subsidy applies individually to each partner's share, up to a maximum of ₹7,500 per partner. In other words, the total subsidy amount doubles in a partnership arrangement.

Which businesses and sectors are covered?
Small manufacturing units and cottage industries.
Trading, transportation, hotels and restaurants (excluding those serving alcohol or meat), and various service-oriented units.
To empower school and college dropouts to become self-reliant, training is also provided in skills such as bookkeeping, marketing, and project financing.

**Key Rules Regarding Loan Repayment and Interest Rates**
Interest applies at rates periodically determined by the Delhi Government, accruing from the date of loan disbursement. The principal amount and interest must be repaid over 5 years or in 20 quarterly installments. Recovery of the principal amount does not begin for the first 12 months following disbursement, although interest accrues from the very first quarter. Applicants must provide security or a guarantee from a government employee working with the Delhi Government, the Central Government, or an autonomous body in Delhi. If the loan amount is not utilized for the specified purpose within 3 to 6 months, or is misused, the entire loan amount will be recovered along with a penal interest of 18%.

**Eligibility Criteria**
Applicants must be between 18 and 50 years of age. Eligible candidates include school or college dropouts, individual entrepreneurs, artisans, and graduates from technical or vocational institutes. The industrial or commercial unit must be located within the National Capital Territory (NCT) of Delhi. You are ineligible to apply if you have previously availed a loan under another government scheme and have not fully repaid it.

**Required Documents and Application Process**
Voter ID card or valid passport
Attested passport-sized photograph
Proof of ownership, rent agreement or NOC, and electricity bill
Guarantee letter from a government employee, along with MCD registration and NOC

**How ​​to Apply**
Offline Mode: Obtain the form from the DKVIB office, fill it out, and submit it directly to the Board office along with all required documents. Online Mode: Download the form from the official website, fill it out, and upload the scanned documents (JPEG/PDF format, max 2MB). Selection Process: Applications are processed by the Board on a 'first-come, first-served' basis.

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