Credit Based Schemes For SC - Term Loan (TL)
By Ministry of Social Justice and Empowerment
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Quick Answer
This scheme provides term loans and subsidies to Scheduled Caste entrepreneurs for viable income-generating projects up to ₹50 lakh, implemented through State Channelising Agencies and banks.
- Funding amount
- Up to ₹47.5L
- Funding type
- Debt
- Application deadline
- Rolling
- Location
- Open to startups registered in India
About this loan
The "Credit Based Schemes For SC - Term Loan (TL)" by the National Scheduled Castes Finance and Development Corporation (NSFDC), Ministry of Social Justice and Empowerment, Government of India, is designed to offer financial assistance for various income-generating activities and to foster economic development among beneficiaries from the Scheduled Caste community. This initiative provides term loans for economically viable projects, with a maximum unit cost of ₹50,00,000/-. The scheme operates through a network of State Channelising Agencies (SCAs), Regional Rural Banks (RRBs), Public Sector Banks (PSBs), and other affiliated channelising agencies, which facilitate the appraisal, sanction, and disbursement processes. Financial support is extended across diverse sectors, contingent on a thorough viability assessment of the proposed projects. NSFDC contributes up to 95% of the total project cost, with the beneficiary responsible for a mandatory promoter contribution. Additionally, eligible beneficiaries living below the poverty line may also qualify for a subsidy, subject to predefined limits. This comprehensive approach aims to empower Scheduled Caste individuals by enabling them to establish and expand their enterprises, thereby contributing to their financial independence and broader economic upliftment.
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 Ministry of Social Justice and Empowerment is a Government of India ministry, with its office at Shastri Bhawan in New Delhi. Its entrepreneurship loans are run through two corporations under the ministry, the National Scheduled Castes Finance and Development Corporation…
Learn moreBenefits & Funding
- Amount
- Up to ₹47.5L
- Fund type
- Debt
- Repayment
- Repayable
What You Get
- Term Loan: Financial assistance is provided for up to 95% of the project cost, with a maximum project cost ceiling of ₹50,00,000/-. This translates to a maximum loan amount of ₹47.5 lakh (95% of ₹50 lakh).
- Promoter Contribution: Beneficiaries are required to contribute a percentage of the project cost: 2% for projects up to ₹5 lakh, 3% for projects between ₹5 lakh and ₹10 lakh, and 5% for projects above ₹10 lakh.
- Subsidy for BPL Beneficiaries: Eligible beneficiaries living below the poverty line may receive a subsidy of ₹10,000/- or 50% of the unit cost, whichever is less.
- Attractive Interest Rates: Loans are offered at competitive annual interest rates: 6% for loans up to ₹5 lakh, 8% for loans between ₹5 lakh and ₹10 lakh, and 9% for loans between ₹10 lakh and ₹50 lakh.
- Disbursement
- Milestone Based
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection process involves multiple levels of appraisal and recommendation. First, loan applications submitted to District Offices of State Channelising Agencies (SCAs) are scrutinized. The SCAs then appraise the viability of project proposals at their Head Offices and forward viable projects with their recommendations to NSFDC for sanction. Alternatively, applications submitted to other Channelising Agencies (RRBs, PSBs, NBFC-MFIs) undergo a similar appraisal. At NSFDC, project proposals are further appraised by the Project and Banking Desk, and an appraisal report is submitted to the Project Clearance Committee (PCC) for concurrence. Proposals deemed in order are then recommended for sanction.
Application Process
- 1
Contact Channelising Agency
Applicant contacts the nearest State Channelising Agency (SCA), Regional Rural Bank, Public Sector Bank, or other associated agency.
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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
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 4
Submit on the official portal
Use the official application link and verify all details before final submission.
- 5
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the maximum project cost covered under this scheme?
The scheme supports viable projects with a unit cost of up to ₹50,00,000/-.
What percentage of the project cost can NSFDC provide?
NSFDC provides financial assistance for up to 95% of the project cost.
What is the required promoter contribution?
Beneficiaries must contribute 2% for projects up to ₹5 lakh, 3% for projects between ₹5 lakh and ₹10 lakh, and 5% for projects above ₹10 lakh.
Are there any subsidies available?
Yes, beneficiaries living below the poverty line may receive a subsidy of ₹10,000/- or 50% of the unit cost, whichever is less.
What are the interest rates for the loans?
Interest rates vary based on the loan amount: 6% p.a. for loans up to ₹5 lakh, 8% p.a. for loans between ₹5 lakh and ₹10 lakh, and 9% p.a. for loans between ₹10 lakh and ₹50 lakh.
How do I apply for this scheme?
Eligible individuals should contact the nearest State Channelising Agency (SCA), Regional Rural Bank, Public Sector Bank, or other associated channelising agency. Loan applications are typically submitted to the District Offices of SCAs.
Sources
Data on this page is compiled from official program and provider references.
