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Loan Based Schemes For Safai Karamchari - General Term Loan (GTL)

LBSSF-GTL

Published by Monika, Editor

Revised Official listing text, not yet reviewedHow entries are compiled

Program brief

Form of supportCash, paid into the bank account
Meant forEntrepreneurs, Safai Karamchari
LevelCentral
Run byMinistry Of Social Justice and Empowerment
FieldBanking,Financial Services and Insurance
Started1997
How to applyOffline
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Contents of this entry
  1. Overview
  2. Benefits
  3. Eligibility
  4. Documents
  5. Application steps
  6. Questions and answers

Overview

Loan Based Schemes For Safai Karamchari - General Term Loan (GTL)

A general term loan scheme by the Ministry of Social justice and Empowerment for Safai Karamchari, Manual Scavengers, and their dependants aged 18 years and above.

The scheme "Loan Based Schemes For Safai Karamchari - General Term Loan" has been launched by the Ministry of Social Justice and Empowerment, Government of India. Under this scheme, term loans are extended through State Channelising Agencies (SCAs), Regional Rural Banks (RRBs), and Nationalised Banks to the target group. Under this scheme, assistance is provided for any viable income-generating schemes, including sanitation-related activities, with a maximum project cost of Rs. 15.00 lac.

Further facts from the listing

Scheme typeCentrally Sponsored Scheme
Implementing agencyNational Safai Karamcharis Finance & Development Corporation (NSKFDC)
Scheme forFamily
DBT (direct bank transfer)No

Benefits

Financial Assistance:

  1. The applicant can avail a term loan for viable income-generating schemes, including sanitation-related activities.
  2. The maximum project cost covered under the scheme is Rs. 15,00,000/-.
  3. The General Term Loan can be provided up to a maximum of 90% of the unit
Loan AmountInterest Rate Chargeable to SCAInterest Rate Chargeable to Beneficiary
Up to Rs. 15,00,000/-4.5% per annum9% per annum

Promoter’s Contribution:

  • Promoter’s contribution is not insisted upon for projects costing up to Rs. 2,00,000/-.
  • For projects costing more than Rs. 2,00,000/-, the minimum promoter’s contribution required from the beneficiary is 5%.
  • The SCA is required to provide a 5% contribution.
  • The remaining 10% share of the unit cost is provided by SCAs through a loan, subsidy, promoter’s contribution, or any other available source of funds.

Repayment Period:

  • The repayment period is up to 10 years.
  • The repayment period starts after an implementation period of 4 months and a moratorium period of 6 months.
  • The repayment period is calculated from the date of disbursement of the loan.
  • The repayment period depends on the viability/profitability and repayment capacity of the unit.

Mode of Disbursement: Term loans are extended through:

  • State Channelising Agencies (SCAs)
  • Regional Rural Banks (RRBs)
  • Nationalised Banks

Eligibility

Age
18 to 80 years
Residence
Rural, Urban
  1. Safai Karamcharis (including Wastepickers) identified Manual Scavengers and their dependents.
  2. Registered co-operative societies of Safai Karamcharis.
  3. Legally constituted association/firm promoted by the target group, and
  4. All those who produce a certificate from the local Revenue Officer/local Municipal Officer/Cantonment Executive Officer/Railway Officer, Head of the Government. Departments (i.e. Schools, Colleges, Forest, Health, Education, Animal Husbandry) having rank not less than Gazetted Officer, Elected Members of Municipal Body & Pradhan of Gram Panchayats, Regional Managers of Regional Rural Banks(RRBs)/Nationalised Banks.
  5. However, under the MS Act, 2013, a person identified as a Manual Scavenger in a survey need not provide any certificate once his/her name appears in the final list of Manual Scavengers prepared by State Governments/Union Territory Administration. (https://nskfdc.nic.in/en/content/home/ms-survey-2018, https://nskfdc.nic.in/en/node/79798).
  6. No income limit is fixed for availing financial assistance. However, other things being equal, NSKFDC accords priority to economic development and rehabilitation of –
  • Scavengers and amongst scavengers those scavengers whose income is below double the poverty line;
  • Women from among the target group and
  • Disabled persons among the target group.

Who cannot apply

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Documents

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Application steps

Offline

Interested eligible person shall contact the nearest Channelling Agency: (https://nskfdc.nic.in/en/content/home/list-channelizing-agencies)

  • The applicant should approach the concerned State Channelising Agency (SCA), Regional Rural Bank (RRB), or Nationalised Bank for applying under the scheme.
  • The applicant should obtain the application form from the concerned implementing agency.
  • The applicant should fill in the required details in the application form and submit it to the concerned agency.
  • The concerned agency will process the application and assess the viability/profitability and repayment capacity of the proposed unit.
  • After approval, the term loan assistance is extended through the concerned channelising agency/bank.

Terms used on this page

Target group

Safai Karamcharis (including Wastepickers), Manual Scavengers and their dependants constitute the target group.

Safai Karamchari

“Safai Karamchari” means a person, including his/her dependants, engaged in or employed for any sanitation work and includes waste pickers, but excludes domestic worker and manual scavengers.

Manual Scavengers

A person engaged or employed by an individual or a local authority or an agency or a contractor for manually cleaning, carrying, disposing of, or otherwise handling in any manner, human excreta in an insanitary latrine or in an open drain or pit into which the human excreta from the insanitary latrines is disposed of, or on railway track or in such other spaces or premises, as the Central Government or a State Government may notify, before the excreta fully decomposes in such a manner as may be prescribed, and the expression ‘’Manual Scavenging” shall be construed accordingly and a) “engaged or employed’’ means being engaged or employed on a regular or contract basis; b) a person engaged or employed to clean excreta with the help of such devices and using such protective gear, as the Central Government may notify in this behalf, shall not be deemed to be a ‘manual scavenger’.

Dependent

“Dependant” in relation to a Safai Karamcharis (including Wastepickers), Manual Scavengers includes a member of his family, who is dependent on him/her and has attained the age of 18 years & above for the purpose of financial assistance and for Skill Development Training Programme the age limit is 18 years to 45 years.

Questions and answers

What is moratorium period?

A moratorium period refers to a particular period of a loan tenure during which the borrower does not have to repay anything. It can be described as a waiting period before the borrower will have to start paying the equated monthly installments (EMIs) for his or her loan

Does the scheme provide loans to all Unorganized Workers persons?

No, the scheme provides loans only to Safai Karamchari, Manual Scavengers and their dependants

How does the scheme provide assistance?

Under this scheme, term loans are extended through State Channelising Agencies (SCA), Regional Rural Banks(RRBs) and Nationalised Banks to the target group.

Is there any income limit for the scheme?

No, there is no such limit mentioned in the guidelines, however , other things being equal, NSKFDC accords priority to economic development and rehabilitation of:- i) Manual Scavengers and amongst scavengers those scavengers whose income is below double the poverty line; ii) Women from among the target group and iii) Disabled persons among the target group. • Financial viability, income generating capacity of the project etc. are considered while evaluating the projects for financing.

With what type of Projects can I avail this schemes?

Any viable and income generating schemes are financed by NSKFDC to Safai Karamcharis, Scavengers and their dependents. As per the project proposals received from the SCAs, the following sectors are given priority by the target group:-
Transport
Small and Petty Business
Non-land based schemes
Sanitation based equipments

I am a Domestic Worker, am I eligible for the scheme?

No, You are not eligible.

I am a Waste Picker, am I eligible for the scheme?

Yes, You are eligible.

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