TDB Project Funding (Loan & Equity)
By Technology Development Board (TDB)
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Quick Answer
5% soft loans for up to 70% of project cost, or equity, from DST's Technology Development Board to commercialise Indian technology.
- Funding amount
- Varies
- Funding type
- Debt
- Application deadline
- Rolling
- Location
- Open to startups registered in India
About this loan
The Technology Development Board (TDB), established under the provisions of the Technology Development Board Act, 1995, administers the Fund for Technology Development and Application. This fund is generated from the Research & Development Cess levied on imported technology, with a mandate to encourage the commercial application of indigenously developed technology and adapt imported technology for wider domestic use. TDB plays a crucial role in bridging the gap between innovative research and market-ready products by providing financial assistance to industrial concerns and other agencies. The TDB's funding aims to support a broad spectrum of technology development and commercialization projects. These include the creation of new products, processes, or applications using indigenous technology, as well as significant improvements to existing ones. The board also funds initiatives focused on substantial quality upgrades, reduced material and energy consumption, and enhanced competitiveness. Projects addressing occupational health and safety standards, domestic or foreign environmental requirements, and compliance with product liability legislation in export markets are also prioritized. Furthermore, TDB supports the adaptation and modification of imported technologies for wider domestic application, the replacement of imported raw materials with indigenous substitutes, and the development of socio-commercially viable new and renewable energy sources. This also extends to medical standards, bio-medical equipment, devices, and hazardous waste recycling technologies.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Grant providers
The Technology Development Board (TDB) is India's statutory financier for taking a home-grown technology to market. It was constituted in September 1996 under the Technology Development Board Act, 1995, works under the Department of Science & Technology, and sits in Technology…
Learn moreBenefits & Funding
- Fund type
- Debt
- Repayment
- Repayable
What You Get
- Loan: 5% simple interest per year. Covers up to 70% of project cost for loans up to ₹5 crore, and up to 50% for loans above ₹5 crore (March 2023 revision).
- Repayment: one-year moratorium after the project is completed, then 9 half-yearly instalments.
- Interest rebate: a 1% rebate can be considered for companies that repay on schedule, decided by the Board case by case.
- Equity: up to 25% of project cost (including working-capital margin money), not more than the capital paid up by the promoters. TDB may nominate a director to your board.
- Grants: only in exceptional cases.
- Costs to you: a 1% earnest fee on the amount sought (forfeited if you don't sign the loan agreement after the sanction letter), and a royalty of 0.2–0.5% of sales or 1% of profits from the product TDB funded. No processing or commitment charges.
- Security: collateral as recommended by TDB's committee; mortgage or hypothecation of the assets TDB funds is mandatory. Pledging promoter shares is no longer mandatory.
- Disbursement
- Milestone Based
Timelines & Process
Applications
Rolling basis
Selection Process
Applications will be evaluated for their scientific, technological, commercial and financial merits. The evaluation criteria include: the soundness, scientific quality and technological merit of the project; its potential for wide application and expected benefits from commercialization; the adequacy of the proposed effort; the capability of the R&D institution(s) in the proposed action network; and the organizational and commercial capability of the enterprise including its internal accruals and track record of the entrepreneur. The reasonableness of the proposed cost and financing pattern, along with measurable objectives, targets, and milestones, will also be assessed. The evaluation process will also include on-site visits to thoroughly assess the project and applicant.
Application Process
- 1
Apply online
Register your company on TDB's e-techcom portal and submit the proposal with Form A details and enclosures.
You - 2
- 3
- 4
- 5
How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
What kind of funding does TDB give?
Mainly soft loans at 5% simple interest. TDB can also invest equity, and gives grants only in exceptional cases.
How much of my project can TDB fund?
Up to 70% of project cost for loans up to ₹5 crore, and up to 50% for loans above ₹5 crore. Equity is capped at 25% of project cost.
Who can apply?
Companies incorporated under the Companies Act, cooperatives and other agencies, plus individual inventors who hold the IP. Sole proprietorships and partnership firms cannot apply.
How is the loan repaid?
Repayment starts after a one-year moratorium that begins when the project is completed, in 9 half-yearly instalments. A royalty of 0.2–0.5% of sales, or 1% of profits, is also payable on the funded product.
Is there any fee?
No processing or commitment charges. You deposit a 1% earnest fee on the amount sought, which is forfeited only if you don't sign the loan agreement after TDB issues the sanction letter.
What won't TDB fund?
Refinancing, basic research, new R&D centres, travel and conferences, pure infrastructure creation, and sick or incipiently sick companies.
Sources
Data on this page is compiled from official program and provider references.
News
- Technology Development Board to pause invitations for RDI fund after Septembertheprint.in · today
- Govt’s Rs 1 lakh crore deep-tech fund hits pause, TDB halts fresh applicationsmoneycontrol.com · today
- TDB backs 22 projects under Rs 1 lakh Cr RDI Fund, says industrialist Sudhir Mehtayourstory.com · today
- TDB signs ₹37.51 crore pact with Multi Nano Sense Technologies for indigenous multi-gas sensing platformmanufacturing.economictimes.indiatimes.com · yesterday
- Agnikul Cosmos Secures ₹200 Crore TDB Funding for Reusable Launch Vehicleciol.com · 2 days ago
Source: Google News aggregated
