SC/ST Bank Guarantee Charges Refund
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Quick Answer
SC/ST MSEs get back 80% of the bank charges paid for a Performance Bank Guarantee, up to Rs. 1,00,000 a year.
- 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
Winning a government or corporate order usually means furnishing a Performance Bank Guarantee to the buyer department — and the bank charges for it eat into a small supplier's margin.
Under the National SC-ST Hub's competitiveness interventions, an SC/ST-owned micro or small enterprise can claim those PBG charges back: 80% of the charges or Rs. 1,00,000, whichever is less, excluding GST and other applicable taxes, on charges paid in a financial year.
The guarantee must have been issued in favour of a buyer department.
Eligibility
See if you're eligible
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 the bank charges you paid to have a Performance Bank Guarantee issued in favour of a buyer department — 80% of those charges or Rs. 1,00,000, whichever is less, excluding GST and other applicable taxes. It is assessed on charges paid within a financial year, so it directly reduces the cost of bidding for and executing supply orders.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
Obtain the PBG
Get a Performance Bank Guarantee issued in favour of the buyer department and pay the bank charges.
You - 2
- 3
- 4
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 exactly is reimbursed?
The bank charges paid for issuance of a Performance Bank Guarantee — 80% of the charges or Rs. 1,00,000, whichever is less.
Are taxes included?
No. GST and all other applicable taxes are excluded from the reimbursable amount.
Does the PBG have to be for a government buyer?
The guarantee must be issued in favour of a buyer department.
How often can it be claimed?
The limit applies to the PBG charges paid in a financial year.
Who can claim?
SC/ST-owned micro and small enterprises.
Sources
Data on this page is compiled from official program and provider references.
News
- National SC-ST Hub: From Enterprise Support to Public Procurement Opportunitiesddindia.co.in · 2 weeks ago
Source: Google News aggregated
