Bank Guarantee Charges Reimbursement Scheme
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Quick Answer
Reimbursement of up to ₹1,00,000 (or 80%) on Performance Bank Guarantee charges for SC/ST-owned MSEs participating in government tenders.
- 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
This scheme provides reimbursement of 80% or Rs. 1,00,000 (excluding GST and other applicable taxes), whichever is less, on Performance Bank Guarantee charges paid by SC/ST MSEs for participation in tenders of Central/State Govt. and Public Sector Enterprises (PSEs).
Documents to be submitted:
- Self-certified copy of Udyam Registration & GST (if applicable).
- Self-certified copy of PAN card. In case of proprietorship, PAN card of the SC/ST proprietor is required.
- Copy of Caste Certificate of all promoters.
- Details of shareholding for partnership, Pvt. Ltd, or LLP firms. For partnership concerns, the shareholding of the SC/ST entrepreneur must be > 51%. A copy of the Partnership Deed or Memorandum and Articles of Association is required.
- Bank attested debit statement with PBG charges mentioning Bank Guarantee number and applicant MSE's name.
- Bank attested and stamped copy of the PBG issued by the bank.
- Cancelled cheque of the enterprise's current account from which Bank Charges were debited.
- Proof of any prior reimbursement received from NSSHO/NSIC under the scheme within the same financial year.
- Supply Order / Purchase Order/ Work Order from the government entity against which the PBG was taken, stating the PBG requirement.
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
Reimbursement of up to 80% of Performance Bank Guarantee charges paid by SC/ST-owned MSEs for participation in Central/State Government or PSE tenders, capped at ₹1,00,000 (excluding GST and taxes). The subsidy is non-dilutive and non-repayable, directly reducing the cost of accessing government procurement opportunities.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
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
Who is eligible for this scheme?
Micro and Small Enterprises (MSEs) with Udyam Registration where SC/ST entrepreneurs hold more than 51% shareholding. The enterprise must have paid Performance Bank Guarantee (PBG) charges to participate in tenders from Central/State Government or Public Sector Enterprises (PSEs).
How much reimbursement can I claim?
You can claim 80% of the Performance Bank Guarantee charges paid, or ₹1,00,000 (excluding GST and other taxes), whichever is less.
What is a Performance Bank Guarantee and when is it needed?
A Performance Bank Guarantee (PBG) is a security instrument issued by a bank on behalf of a business to a government/PSE buyer, guaranteeing contract performance. Banks charge a fee for issuing the PBG, and this scheme reimburses a portion of that fee.
What documents are required?
Required documents include: Udyam Registration and GST copy, PAN card, caste certificate of all promoters, shareholding details (Partnership Deed or MOA/AOA showing >51% SC/ST ownership), bank-attested debit statement mentioning PBG charges and Bank Guarantee number, bank-attested copy of the PBG itself, cancelled cheque, and the Supply/Purchase/Work Order from the government entity requiring the PBG.
Can I apply multiple times in a financial year?
The scheme allows reimbursement within a financial year, but you must provide proof of any prior reimbursement already received from NSSHO/NSIC under the same scheme in that year. Multiple claims may be subject to the overall cap.
Is this a loan or a grant?
This is a non-repayable reimbursement subsidy. No loan repayment is required and no equity is taken from your enterprise.
Sources
Data on this page is compiled from official program and provider references.
