Program brief
| Benefit | Rs. 10,000 or 50% of the unit cost, whichever is less. |
|---|---|
| Form of support | Cash, paid into the bank account |
| Meant for | Entrepreneurs |
| Level | Central |
| Run by | Ministry Of Social Justice and Empowerment |
| Field | Banking,Financial Services and Insurance |
| Started | 2014 |
| How to apply | Offline |
Contents of this entry
Overview
The scheme aims to provide financial assistance for viable income-generating activities of Scheduled Caste beneficiaries. Through this scheme, term loans of up to 95% of the project cost are provided for projects costing up to Rs. 50,00,000/-.
The scheme "Credit Based Schemes For SC - Term Loan (TL)" by the National Scheduled Castes Finance and Development Corporation (NSFDC), Government of India, aims to provide financial assistance for income-generating activities and economic development of Scheduled Caste beneficiaries. Through this scheme, term loans are provided for viable projects with a unit cost of up to Rs. 50,00,000/-. The scheme is implemented by the National Scheduled Castes Finance and Development Corporation through State Channelising Agencies, Regional Rural Banks, Public Sector Banks, and other channelising agencies. Financial assistance is available for projects across various sectors, subject to appraisal and viability assessment. NSFDC provides assistance for up to 95% of the project cost, while the beneficiary contributes the prescribed promoter contribution. Subsidy may also be available to eligible beneficiaries living below the poverty line, subject to prescribed limits.
Further facts from the listing
| Scheme type | Central Sector Scheme |
|---|---|
| Implementing agency | National Scheduled Castes Finance And Development Corporation (NSFDC) |
| Scheme for | Infra |
| DBT (direct bank transfer) | No |
| Loan repayment schedule | Repayment terms are set by the Channelizing Agencies. |
| Maximum subsidy amount | Rs. 10,000 or 50% of the unit cost, whichever is less. |
| Income limit for applicants | Annual family income must be up to Rs. 3.00 lakhs. |
| Project viability assessment | Projects must be appraised and found viable by the concerned agency. |
Benefits
- Financial assistance of up to 95% of the project cost for income-generating activities, subject to a maximum project cost of Rs. 50,00,000/-.
- The beneficiary is required to contribute:
- 2% of the project cost for projects up to Rs. 5,00,000/-;
- 3% for projects above Rs. 5,00,000/- and up to Rs. 10,00,000/-;
- 5% for projects above Rs. 10,00,000/-.
- Beneficiaries living below the poverty line may receive a subsidy of Rs. 10,000/- or 50% of the unit cost, whichever is less.
- Interest rates payable by beneficiaries are:
- 6% per annum for loans up to Rs. 5,00,000/-;
- 8% per annum for loans above Rs. 5,00,000/- and up to Rs. 10,00,000/-;
- 9% per annum for loans above Rs. 10,00,000/- and up to Rs. 50,00,000/-.
Mode of Disbursement: Through State Channelizing Agencies, Regional Rural Banks, Public Sector Banks, and other channelizing agencies associated with NSFDC.
Eligibility
- The applicant should be an entrepreneur of the Scheduled Caste Category.
- The applicant should submit a viable project proposal for an income-generating activity.
- The applicant should apply through a State Channelising Agency, Regional Rural Bank, Public Sector Bank, or other channelising agency associated with NSFDC.
- The project proposal should be appraised and found viable by the concerned channelising agency.
Who cannot apply
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Documents
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Application steps
Offline
The interested eligible person shall contact the nearest Channelling Agency (https://nsfdc.nic.in/channel-patrners/ ).
Indicative Format: https://nsfdc.nic.in/UploadedFiles/other/form/termloan-english.pdf
- The loan applications are to be submitted by the eligible target group (Scheduled Castes persons having annual family income up to Rs. 3.00 lakhs ) to the District Offices of State Channelising Agencies (SCAs).
- The District Offices of SCAs/CAs forward these applications, after scrutiny, to their Head Offices. The viability of the project proposals is appraised by the SCAs, and the viable projects are forwarded to NSFDC along with their recommendations for sanction.
- Eligible target group can also submit their loan application to other Channelising Agencies of NSFDC, such as Regional Rural Banks/ Public Sector Banks/ NBFC-MFIs, etc., with whom NSFDC has signed Memoranda of Agreements.
- The said project proposals are appraised by the Project and Banking Desk. The appraisal report is submitted to the Project Clearance Committee (PCC) for their concurrence.
- The proposals that are found to be in order are recommended for sanction. After sanction, Sanction Letters, called Letters of Intent (LOIs), along with Terms & Conditions, are issued to the SCAs/ RRBs/ Public Sector Banks/ NBFC-MFIs, etc. for acceptance.
- After acceptance of the terms and conditions of the sanction and fulfilment of Prudential Norms, as applicable, funds are disbursed to the SCAs/ RRBs/Nationalised Bank for onward disbursement to the beneficiaries.
- The disbursement of funds is made by NSFDC on receipt of demand from the SCAs/ RRBs/ Public Sector Banks/ NBFC MFIs. The loans are to be repaid by the beneficiaries as per the repayment schedule stipulated by the SCAs/CAs.
Questions and answers
What is the Term Loan (TL) Scheme?
The Term Loan (TL) Scheme is a financial assistance scheme of the National Scheduled Castes Finance and Development Corporation (NSFDC) that provides loans for viable income-generating activities.
Who implements the Term Loan (TL) Scheme?
The scheme is implemented by NSFDC through State Channelizing Agencies, Regional Rural Banks, Public Sector Banks, and other channelizing agencies.
What is the maximum project cost covered under the scheme?
The scheme covers projects with a cost of up to Rs. 50,00,000/-.
How much financial assistance can be provided under the scheme?
Financial assistance of up to 95% of the project cost may be provided, subject to the scheme guidelines.
Is any beneficiary contribution required?
Yes. The beneficiary is required to contribute 2%, 3%, or 5% of the project cost, depending on the project amount.
Is there any subsidy available under the scheme?
Yes. Beneficiaries living below the poverty line may receive a subsidy of Rs. 10,000/- or 50% of the unit cost, whichever is less.
What are the interest rates under the scheme?
The interest rate ranges from 6% to 9% per annum, depending on the loan amount sanctioned.
Where can an applicant submit the application?
Applications can be submitted through the District Offices of State Channelising Agencies or participating Regional Rural Banks, Public Sector Banks, and other channelising agencies associated with NSFDC.
What happens after the application is submitted?
The application and project proposal are scrutinised and appraised for viability by the concerned agency before being considered for sanction.
How is the loan amount disbursed?
After approval and completion of the prescribed formalities, the loan amount is disbursed through the concerned channelising agency.
Official portal and guidelines
Applications are submitted only on the provider's own portal. jsrr.in does not accept forms, documents or fees.
Documents from the provider
- Official Website nsfdc.nic.in
jsrr.in is an independent index, not a funding agency or a government body. The provider's official call is final: confirm every condition, amount and date there, and do not pay anyone who offers to apply for you.
This entry reproduces the official listing and has not yet been rewritten or reviewed by our team. Read the official call before you apply.
Filed under
- StateAll India686
- FieldBanking,Financial Services and Insurance333
- FieldBusiness & Entrepreneurship768
- FieldSocial welfare & Empowerment1447
- Eligible groupEntrepreneurs423
- FunderMinistry Of Social Justice and Empowerment83
- LevelCentral707
- Award typeCash2722
- KeywordCompanies5
- KeywordEntrepreneur114
- KeywordScheduled Caste250
- KeywordSocities
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