TDB Soft Loan Scheme
5% simple-interest funding from the Technology Development Board for indigenous technology commercialization.
What is the TDB Soft Loan Scheme?
The Technology Development Board (TDB), a statutory body under the Department of Science & Technology (DST), Government of India, provides financial assistance to industrial concerns and cooperatives working on the commercialization of indigenous technology or the adaptation of imported technology for wider domestic application. Among TDB’s three modes of assistance – Loan, Equity, and Grant – the soft loan is the most widely availed, offered at a concessional 5% simple annual interest rate.
“The Board reduced the rate of simple interest from 6% to 5% per annum with effect from 13 May 2002, and continues to offer this concessional rate to eligible industrial concerns and cooperatives to date.”
Role of TDB in Technology Commercialization
TDB is the first organization of its kind within the Indian government framework, set up with the sole objective of translating the fruits of indigenous research into commercial products. It bridges the gap between technology development and market deployment, generally supporting technologies in the mid-to-high Technology Readiness Level (TRL) range – from TRL 7 (prototype demonstration in an operational environment) through TRL 9 (full commercial application with proven market deployment).
Who Can Apply
- Companies incorporated under the Companies Act, 1956 or 2013 (sole proprietorships and partnership concerns are excluded)
- Cooperatives and other eligible agencies
- Start-ups and technocrat-entrepreneurs, with special incentives for DPIIT-registered start-ups
- Individual IP holders/inventors who hold or have filed for legal title to the underlying technology
- Enterprises partnering with a recognized R&D institution – national/state laboratories, academic institutions, DSIR-recognized R&D units, or registered R&D foundations/trusts
What Projects Are Eligible
- Development and commercialization of a new product, process, or application through indigenous technology
- Significant improvement of an existing product, process, or application
- Adaptation or modification of an imported product/process for wider domestic use
- Replacement of imported raw materials or components with indigenous substitutes
- Technology upgrades to meet occupational health, safety, or environmental standards
Loan Terms at a Glance
| Feature | Details |
|---|---|
| Interest Rate | 5% simple annual interest |
| Loan Quantum | Up to 50% of the project cost (up to 70%, capped at ₹5 crore, for DPIIT-registered start-ups) |
| Processing/Admin Charges | Nil – a 1% earnest deposit is payable, forfeited only if the loan agreement is not signed post-LOI |
| Project Duration | Up to 2.5 years |
| Moratorium | 1 year after successful project completion |
| Repayment | 4.5 years, in 9 half-yearly instalments |
| Security | Hypothecation/mortgage of project assets, plus collateral and guarantees as assessed by TDB |
| Disbursement | In tranches, linked to pre-agreed technical and financial milestones |
What TDB Does NOT Fund
- Refinancing of existing loans
- Basic research (as opposed to applied, commercialization-focused R&D)
- Setting up of new R&D centres
- Travel, conferences, or workshops, unless essential to the approved project
- Assistance to industrial concerns that are sick or incipiently sick
- More than two simultaneous projects for the same industrial concern
How to Apply
TDB accepts applications throughout the year via online submission on its official portal. Proposals move through an Initial Screening Committee, a Project Evaluation Committee (including a site visit), and finally the Project Approval Committee – a process that typically takes 3–4 months from receipt of a complete application.
Source: Technology Development Board – Modes of Financial Assistance & TDB Official FAQs