Father (15+ yrs Driver) & I (25M IT Freshers) Want to start a Trucking business. Need guidance on loans and schemes and operations
My Background
- Family: Poor farming family in Bihar. Combined savings = ₹1L. Land (grandfather’s name, not liquid).
- Father: Truck driver (15+ yrs exp), earns ₹20-30k/month. Connects with Jharkhand/Punjab transporters.
- Me: IT job (₹70k/month, 50k savings planned). Got this job in January. CIBIL 775
Current Situation
Opportunity: Father currently sources clients for a truck he doesn’t own. Owner gets the benifit. Dad just gets salary.
Local Pain Points:
- 8-10 truck owners in my village exploited by transporters (no standardized ops, empty return trips, delayed paperwork).
- Drivers/helpers struggle with contracts, insurance, permits.
- 8-10 truck owners in my village exploited by transporters (no standardized ops, empty return trips, delayed paperwork).
The Vision
- Phase 1: Buy 1 Tata Signa 4825 (₹50L truck + ₹5L body + ₹5L papers/insurance).
- Phase 2: Build a “Driver Upliftment Model” – standardized contracts, GPS tracking, bulk insurance.
- Phase 3: Scale to 3 trucks, replace middlemen with direct mining/agri contracts.
Challenges
- Financing:
- No collateral (land in grandfather’s name). Father hasn’t used his bank account in 3 years.
- Heard about MSME/CGTMSE/Startup India – but how to apply without business history?
- No collateral (land in grandfather’s name). Father hasn’t used his bank account in 3 years.
- Operations:
- Zero business experience. How to register a transport firm? GST vs. MSME?
- What legal docs are needed for driver contracts?
- Zero business experience. How to register a transport firm? GST vs. MSME?
- Risk:
- Seasonal demand (coal 6 months, agri 4 months). How to ensure 80%+ truck utilization?
- Seasonal demand (coal 6 months, agri 4 months). How to ensure 80%+ truck utilization?
What I Need Help With
- Loan Strategies:
- Can MSME + Father’s driving license qualify us for CGTMSE collateral-free ₹50L?
- Will my ₹70k salary (startup job) be considered stable income by banks?
- Can MSME + Father’s driving license qualify us for CGTMSE collateral-free ₹50L?
- Govt Schemes:
- How to tap into PM SVANidhi/Startup India for interest subsidies?
- Is the Vehicle Scrappage Policy useful if we don’t own an old truck?
- How to tap into PM SVANidhi/Startup India for interest subsidies?
- Business Setup:
- Step-by-step process to register a transport business in Bihar.
- Best GST structure (composition vs. regular) for 1-3 trucks.
- Step-by-step process to register a transport business in Bihar.
- Study Resources:
- Free courses on logistics management, truck permits.
- Templates for driver agreements, freight invoices.
- Free courses on logistics management, truck permits.
Why I’m Posting Here
Most truck owners in my region are trapped in debt cycles due to middlemen. I want to build a tech-enabled, ethical fleet but lack formal business/finance knowledge. Your advice could help me:
- Avoid loan sharks/NBFCs charging 18% interest.
- Create SOPs for maintenance, driver shifts, permit renewals.
Budget: ₹60L (Truck + ops) | Timeline: Buy truck by November 2025.
Questions for the Community
- Should I start this early? Do I sound Stupid?
- Has anyone secured a ₹50L+ loan without collateral using CGTMSE? Which banks are startup-friendly?
- Suggest some resources where I can learn about these things.
- Worst mistakes to avoid in Year 1