Is there any government loan scheme for buying auto rickshaw in India?

Government Schemes & Policies
1

Hi friends! I want to buy an auto rickshaw and I heard that the government gives loan or subsidy schemes for this purpose, especially for unemployed youth or SC/ST/OBC categories :oncoming_taxi:. But I’m confused which scheme to apply – is it under PMEGP, MUDRA Loan, or any state-specific program? Also, how much loan is given and what is the interest rate or subsidy amount? If anyone has applied already or knows the right scheme for 2025, please share your experience here. It will help many people who want to start their livelihood.

2

Yes! If you’re planning to buy an auto-rickshaw in India and need financial support, then good news — there are several government-backed loan schemes and subsidies available that help especially unemployed youth, SC/ST/OBC categories, women, and rural workers to purchase auto-rickshaws or e-rickshaws for self-employment.

Let me break it down for you :backhand_index_pointing_down:

1. PMEGP (Prime Minister’s Employment Generation Programme)

What it offers:

  • Loan up to ₹10 lakh for service-based businesses (like auto-rickshaw purchase)
  • Subsidy: 15–35% (depending on category and rural/urban area)
  • Applicable for SC/ST/OBC, women, ex-servicemen, minorities, and general category youth

Eligibility:

  • Age 18+, 8th pass minimum
  • First-time entrepreneur
  • Shouldn’t have taken subsidy under any other scheme

How to apply:

  • Apply online at: www.kviconline.gov.in/pmegp
  • Submit project report for buying an auto-rickshaw
  • Get assistance from KVIC or District Industries Centre

2. MUDRA Loan under PMMY (Pradhan Mantri MUDRA Yojana)

What it offers:

  • Loan up to ₹10 lakh, mostly under Shishu (up to ₹50,000) or Kishor (up to ₹5 lakh) category
  • For buying auto, taxi, or e-rickshaw
  • No collateral required

How to apply:

  • Visit any bank branch or microfinance institution
  • Fill MUDRA application form with quotation of vehicle
  • Attach Aadhaar, PAN, photo, and bank details

Loan is provided by:

  • SBI, Bank of Baroda, Canara Bank, HDFC, PNB, and many more

3. State-Specific Schemes (like YSR Vahana Mitra – AP, Mahajyoti – MH, etc.)

Some states run special Auto-Rickshaw Subsidy Schemes for:

  • SC/ST/OBC candidates
  • Unemployed graduates
  • Women & widows

Examples:

  • YSR Vahana Mitra (Andhra Pradesh): ₹10,000/year support for auto/taxi drivers
  • Mahajyoti (Maharashtra): Special auto loans for SC/ST

Check with your State Transport Department or District Collector Office for local schemes.

4. E-Rickshaw Subsidy Schemes

If you’re buying an electric auto, NITI Aayog + State EV Policies offer:

  • Up to ₹30,000–₹50,000 subsidy on e-rickshaw
  • Reduced interest loans through selected NBFCs or EV showrooms

Documents Required (Generally):

  • Aadhaar card
  • PAN card
  • Caste/income certificate (if applicable)
  • Bank account details
  • Auto-rickshaw quotation/invoice
  • Driving license (LMV or Auto-Rickshaw badge)

Final Words:

If you’re serious about earning through an auto-rickshaw and need help funding it — these government schemes can give you a solid start with low-interest loans and subsidy support. Just make sure your documents and vehicle estimate are ready.

Let me know your state and category and I can suggest the best scheme for you personally! :raising_hands:

#AutoRickshawLoan #PMEGP #MUDRALoan #SelfEmploymentIndia #TransportLoan #RickshawSubsidy #GovernmentLoanIndia #DiscussionForum #EautoLoan #YouthEmpowermentIndia