SFSRTOS

The scheme aims to extend financial assistance for acquiring new transport vehicles, including goods and passenger vehicles. It provides term loans covering up to 70% of the vehicle cost, excluding road tax and insurance, repayable over a max. of 58 monthly instalments.

The scheme "Scheme for Small Road Transport Operators (SRTOs)" was launched by the Pondicherry Industrial Promotion Development and Investment Corporation Limited (PIPDIC), Department of Industries & Commerce, Puducherry. The scheme aims to extend financial assistance for acquiring new transport vehicles, specifically goods and passenger vehicles. The scheme provides financial assistance covering up to 70% of the cost of the vehicle, excluding road tax and insurance. The applications for this scheme are accepted online.

• The applicant must be a resident of Puducherry.
• The applicant must be seeking financial assistance for acquiring new transport vehicles, which include Goods vehicles and Passenger vehicles.
• The applicant must not be seeking financial assistance for second-hand vehicles.

• Financial assistance is provided up to 70% of the cost of the vehicle.
• The calculation for the financial assistance excludes the cost of road tax and insurance.
• The assistance is intended to meet the expenditure towards the cost of the chassis and body building for new transport vehicles (Goods and Passenger vehicle).
• The maximum repayment period is 58 monthly instalments.
• The repayment period includes a moratorium period of a maximum of 3 months.
• A concessional rate of interest of 0.5% less than the normal rate is charged for units promoted by Women, Scheduled Caste, Scheduled Tribe, or Differently abled persons.

Financial Norms: https://pipdic.in/financial_norms

##### Conditions

• _The proposed vehicle must be hypothecated._
• _Collateral security in the form of immovable property must be offered as per the lending policy of the Corporation._
• _If the immovable property used for collateral security is situated in the Union Territory of Puducherry, its value must be not less than the amount of the term loan sanctioned._
• _If the immovable property is situated outside the Union Territory of Puducherry, the value of the property offered shall be not less than 150% of the loan amount if it includes land with a building._
• _If the property offered outside the Union Territory of Puducherry is only land, its value shall not be less than 200% of the loan amount._
• _For units promoted by Women, Scheduled Caste, Scheduled Tribe, or Differently abled persons, the required value of the immovable property offered as collateral security is reduced and fixed at 50% of the loan amount._
• _The valuation of the properties to be offered as security must be assessed by engaging Chartered Engineers or valuers from the approved panel of the Corporation._

Second-hand vehicles are not eligible for assistance.