Bank Loan Processing Fee Reimbursement Scheme
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Quick Answer
Reimburses up to 80% of bank loan processing fees, capped at ₹1,00,000, for SC/ST-owned Micro and Small Enterprises under the Ministry of MSME's National SC-ST Hub.
- Funding amount
- Up to ₹1L
- Funding type
- Subsidy
- Provider
- National SC-ST Hub
- Application deadline
- Rolling
- Location
- Open to startups registered in India
- Registrations needed
- Udyam registration
About this subsidy
If you own an SC/ST Micro or Small Enterprise, this scheme under the Ministry of Micro, Small, and Medium Enterprises (MSME)'s National SC-ST Hub programme pays back up to 80% of the processing fee on your bank loan, capped at ₹1,00,000. It covers both fund-based and non-fund-based loans.
The loan can come from any financial institution, which cuts the upfront cost of getting business credit.
You can claim more than once in a financial year, within the overall ceiling of ₹1,00,000. Benefits come only after the loan is disbursed. If you run a partnership, Private Limited or LLP, the SC/ST entrepreneur must hold more than 51% of the shares.
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.
Subsidy providers
The National SC-ST Hub (NSSH) is a Government of India scheme under the Ministry of Micro, Small and Medium Enterprises, implemented through the National Small Industries Corporation (NSIC), a public-sector undertaking under that ministry. It was launched by the Prime Minister…
Learn moreBenefits & Funding
- Amount
- Up to ₹1L
What You Get
Processing Fee Reimbursement: The scheme offers reimbursement of up to 80% of the bank loan processing fee or ₹1,00,000 (excluding GST and other taxes), whichever amount is lower. This benefit can be availed multiple times within a financial year, subject to the overall ceiling of ₹1,00,000. This financial support significantly reduces the initial cost of accessing institutional credit, making it easier for SC/ST MSEs to secure necessary business funding. The scheme's continuous availability throughout the financial year ensures sustained support for entrepreneurs as they scale or take new loans.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The scheme operates on a reimbursement model, meaning benefits are disbursed after an eligible business loan has been availed and the processing fee paid. There isn't a competitive selection process in the traditional sense; rather, eligible SC/ST MSEs apply for reimbursement once they meet the criteria, particularly after their business loan has been disbursed by a recognized financial institution. Applications are reviewed for compliance with eligibility criteria and completeness of documentation, ensuring that the claimant and the loan details align with the scheme's provisions before reimbursement is processed.
Application Process
- 1
Visit Portal
Visit the official National SC-ST Hub portal or a CSC-VLE.
You - 2
- 3
- 4
- 5
How to apply
Four steps from draft to disbursement — one action each.
- 1
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.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 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 is the "Bank Loan Processing Fee Reimbursement Scheme"?
It comes under the purview of the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India, and reimburses bank loan processing fees for SC/ST-owned MSEs.
What are the scheme benefits?
Reimbursement of Bank Loan Processing Fee limited to 80% of the fee or ₹1,00,000 (excluding GST and other applicable taxes), whichever is less. Benefits can be availed only after disbursement of business loans in a financial year.
Who can get the scheme benefits?
1. Applicant should belong to the Scheduled Caste / Scheduled Tribe category. 2. He/she should represent/own any MSEs unit. 3. MSEs availing loans from any Scheduled Commercial Banks, NBFCs, and State Finance Corporations will be considered.
Is there a limitation on availing the benefits of this scheme?
No cap on number of times, but total financial assistance in a financial year is restricted to the ceiling of ₹1,00,000 (excluding GST and other applicable taxes).
What kind of loans are eligible for benefits under the scheme?
SC/ST MSEs who avail loans from any Scheduled Commercial Banks, NBFCs and State Finance Corporations, where a loan processing fee is charged.
How should I apply to avail benefit under the scheme?
Apply online on the National SC-ST Hub website www.scsthub.in or visit the nearest CSC-VLE.
Whether I can club this scheme benefit with another scheme?
No. Clubbing with any other scheme reimbursing bank loan processing fees (government or private) is not permitted.
Sources
Data on this page is compiled from official program and provider references.
