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Banking,Financial Services and Insurance; Social welfare & Empowerment

Interest Free Loan (CBOCWWB)

Under this scheme, interest free loan shall be granted to the registered construction workers of the Board for the purchase of items like Fridge, Television/ LCD, Motor Cycle/Scooter, Cooler, Fan & Bicycle.

Authority

State/ UT

Region

Chandigarh

Status

Verified 2026

Updated

March 2026

What you get

Interest Free Loan for the purchase of the following items: | Sr. No.Name of itemsAmount of loanRe-payment period1Purchase of motorcycle /scooter₹25000/-20 equal installments2Purchase of Fridge₹15000/-15 equal installments3Purchase of television/ LCD₹15000/-15 equal installments4Purchase of cooler₹7500/-10 equal installments5Purchase of Fan₹2500/-10 equal installments6Purchase of bicycle₹4000/-10 equal installments

Who can apply

The beneficiary should be working in the Establishment, registered under the Punjab Labour Welfare Fund Act, 1965 and his contribution towards labour welfare fund should regularly been received by the Board.; The beneficiary can apply for the grant of loan for the purchase of one item at a time.; The installment of the loan will be recovered from the salary of the workers by the employer and said amount should be deposited through the payee A/c Cheque in favour of Chandigarh Labour Welfare Board by the Principal Employer.; Interest free loan amount will be recovered in equal monthly installments as per the rule.; The loan will not be granted to those beneficiaries who will be found defaulters in the earlier loan.; The Loan will be sanctioned subject to the standing guarantee of the employer.; Any beneficiary will be eligible to avail of benefits of the scheme only after 06 months of becoming the beneficiary member of the Board at least for the last six months.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What is the Interest Free Loan Scheme introduced by the CBOCWWB?

The Interest Free Loan Scheme is an initiative launched by the Chandigarh Building and Other Construction Workers Welfare Board (CBOCWWB), under the Labour Department, Chandigarh. This scheme aims to provide interest-free loans to registered construction workers for the purchase of specified items, including Fridge, Television/LCD, Motor Cycle/Scooter, Cooler, Fan, and Bicycle.

What items can be purchased using the Interest Free Loan?

The loan can be utilized for the purchase of essential items such as Fridge, Television/LCD, Motor Cycle/Scooter, Cooler, Fan, and Bicycle.

Is the loan entirely interest-free?

Yes, the Interest Free Loan provided under this scheme is entirely interest-free.

Who is eligible to apply for the loan under the Scheme?

To be eligible for the loan, the beneficiary must be employed in an establishment registered under the Punjab Labour Welfare Fund Act, 1965. Additionally, their contributions towards the labour welfare fund should be consistently received by the Board.

How many items can a beneficiary apply for at a time?

A beneficiary can apply for a loan for the purchase of one item at a time under the scheme.

How is the loan installment collected from the workers?

The installment of the loan will be deducted from the salary of the workers by the employer. The deducted amount should be deposited through a payee A/c Cheque in favor of the Chandigarh Labour Welfare Board by the Principal Employer.

Can a beneficiary who defaulted on an earlier loan apply for a new loan?

No, the loan will not be granted to beneficiaries who were found to be defaulters in repaying an earlier loan.

Is the employer required to provide a guarantee for the loan?

Yes, the loan will be sanctioned subject to the standing guarantee of the employer.

What is the eligibility criterion regarding membership duration for availing benefits under the Scheme?

To be eligible for the benefits of the scheme, a beneficiary must have been a member of the Board for a minimum period of 6 months.

How to apply under the scheme?

To apply under the scheme, the applicants need to visit the official website of Labour Department Chandigarh and on the home page, select the scheme 'INTEREST FREE LOAN' under the Grant of Welfare Schemes to the workers of Chandigarh Labour Welfare Board: http://labour.chd.gov.in