Bank Loan Processing Reimbursement Scheme
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Quick Answer
Reimbursement of 80% of bank loan processing charges, up to ₹1,00,000, for Micro and Small Enterprises (MSEs) owned by SC/ST entrepreneurs.
- 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 financial assistance to SC/ST-owned Micro and Small Enterprises (MSEs) by reimbursing the costs associated with bank loan processing. The assistance is capped at 80% of the processing charges or ₹1,00,000 (excluding GST and taxes), whichever is less. The goal is to reduce the financial burden on SC/ST entrepreneurs when availing business loans.
Required Documents:
- Self-certified copy of Udyam Registration (UR) & GST (if applicable).
- Self-certified copy of PAN Card.
- Copy of Caste Certificate of proprietor/all partners/directors.
- Details of shareholding (for Partnership/Pvt Ltd/LLP), with SC/ST entrepreneur holding >51%.
- Bank attested debit statement or valid receipt for the loan processing fee.
- Proof of business loan disbursement.
- Bank attested copy of the loan sanction letter.
- Cancelled cheque of the enterprise's current account.
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 bank loan processing charges, capped at ₹1,00,000 (excluding GST and taxes). This is a non-dilutive, non-repayable subsidy that directly offsets the cost SC/ST-owned MSEs incur when availing formal business credit. No equity is taken.
- 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 Scheduled Caste (SC) or Scheduled Tribe (ST) entrepreneurs hold more than 51% shareholding. The enterprise must have availed a business loan and paid the corresponding processing fees.
How much reimbursement can I receive?
You can receive 80% of the actual bank loan processing charges paid, or ₹1,00,000 (excluding GST and taxes), whichever is less.
Do I need Udyam Registration to apply?
Yes. A self-certified copy of Udyam Registration is a mandatory document. GST registration is required if applicable.
What documents do I need to submit?
Key documents include: Udyam Registration copy, PAN card, caste certificate of proprietor/partners/directors, shareholding details proving >51% SC/ST ownership, bank-attested debit statement or receipt for loan processing fee, proof of loan disbursement, loan sanction letter, and a cancelled cheque of the enterprise's current account.
Is this scheme available on an ongoing basis?
Yes, this is a rolling scheme administered by the National SC-ST Hub. Applications can be submitted as and when eligible enterprises incur loan processing charges.
Is this a loan or a grant?
This is a reimbursement subsidy — not a loan. You do not need to repay the amount, and no equity is taken. It simply refunds a portion of the processing fees you already paid to avail a business loan.
Sources
Data on this page is compiled from official program and provider references.
