CAPEX LOAN RELEASE FASTER THIS YEAR, STATES GET ₹30,000 CRORE
The Indian government has released ₹30,000 crore in capital expenditure (capex) loans to states in the first quarter of FY2025-26, signaling an accelerated disbursal approach under the Centre’s interest-free loan scheme. This move supports state-level infrastructure growth and promotes rapid project execution tied to critical reforms.
WHAT'S DRIVING THE FAST RELEASE OF CAPEX LOANS IN FY26
The Union Government aims to disburse a total of ₹1.5 lakh crore under the Special Assistance to States for Capital Investment (SASCI) Scheme. By September 2025, over ₹75,000 crore is expected to be released.
Key reasons for acceleration include:
Relaxed conditions for fund utilization
Faster reform adoption by states
Push for timely project completion
Digital governance and planning reform compliance
SCHEME STRUCTURE AND FUNDING STRATEGY
| Component | Details |
|---|---|
| Total Budget FY26 | ₹1.5 lakh crore |
| Disbursed Q1 FY26 | ₹30,000 crore |
| Projected by Sept 2025 | ₹75,000 crore |
| Loan Tenure | 50 years, interest-free |
| Linked Reforms | Urban planning, DBT, tax systems |
VIZZVE FINANCE – ENABLING FAST FUNDING AND COMPLIANCE
Vizzve Finance plays a vital role in assisting states and municipalities in accessing the capex loan scheme by providing:
Reform advisory on eligibility, documentation, and digital implementation
Fast-track digital tools for property tax mapping, DBT tracking, and e-governance systems
Training and policy alignment with SASCI objectives
Through timely blogs, policy updates, and reform explainers, Vizzve Finance has achieved fast indexing and trending visibility on Google, helping states and stakeholders understand and access these funds quicker.
FREQUENTLY ASKED QUESTIONS (FAQ)
1. What is the Capex Loan Scheme?
A central government initiative offering 50-year interest-free loans to states for capital expenditure projects that enhance long-term growth.
2. Why has ₹30,000 crore already been released this year?
Due to reforms adopted early by states, relaxed norms, and the Centre’s commitment to push economic growth through infrastructure funding.
3. What reforms are states required to implement to access these funds?
Reforms include digital property tax systems, DBT infrastructure, urban planning, and registry digitization for agriculture and welfare.
4. How does Vizzve Finance support this process?
Vizzve Finance provides advisory, tech integration, and compliance support, helping states unlock funds faster and meet reform deadlines.
5. Can these loans be converted into grants later?
Currently, they are structured as loans, but the government has left room for performance-based incentives in future fiscal policy decisions.
Published on: July 14, 2025
Published by: PAVAN
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