The Ministry of Micro, Small & Medium Enterprises (MSME) has introduced the Bank Loan Processing Fee Reimbursement Scheme as part of the broader National Scheduled Caste and Scheduled Tribe Hub (NSSH) program. This scheme reimburses a significant portion of the processing fees charged by financial institutions when SC/ST MSEs secure business loans. It applies to loans backed by both fund-based and non-fund-based limits.
The scheme aims to:
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Enhance access to capital: Reduce the upfront cost of loan processing fees to encourage SC/ST entrepreneurs.
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Promote inclusive economic development: Foster the growth of SC/ST-owned businesses and contribute to a more diversified economy.
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Strengthen entrepreneurial ecosystems: Simplify the loan application process, thereby supporting the overall entrepreneurial environment.
Benefits
Under the scheme, the reimbursement is capped at 80% of the bank loan processing fee or up to ₹1,00,000 (excluding GST and other applicable taxes).
Eligibility
To qualify for the scheme, applicants must:
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Belong to the Scheduled Caste or Scheduled Tribe category.
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Represent or own an MSME unit.
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Be availing loans from Scheduled Commercial Banks, Non-Banking Finance Companies (NBFCs), or State Finance Corporations.
Application Process
The entire application process is conducted online. Follow these steps:
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Registration:
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Visit the official website: scsthub.in.
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Click on Sign-up and enter your full name, valid email ID, mobile number, and create a password.
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Login:
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Click on Login and enter your credentials.
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Complete Application:
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After logging in, provide all the required information and complete the online form.
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Documents Required
Applicants must upload the following documents:
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Self-certified copy of Udyam Registration (UR) and GST (if applicable).
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Self-certified copy of PAN Card (for proprietorship, the PAN card of the SC/ST proprietor must be submitted).
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Copy of the caste certificate for the proprietor (or all partners/directors).
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Details of shareholding for partnership, Pvt. Ltd, or LLP firms (SC/ST entrepreneur shareholding must be > 51%).
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Include a copy of the Partnership Deed or Memorandum & Articles of Association as applicable.
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Bank attested debit statement showing the loan processing fee charges with the loan number and the MSE’s name, or a valid payment receipt/ GST invoice.
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Business loan availment certificate, disbursement certificate, or bank statement confirming the loan.
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Bank attested copy of the loan sanction letter.
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Cancelled cheque of the current account from which the loan processing charges were debited.
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Proof of any prior reimbursement transferred by NSSHO/NSIC through PFMS within the same financial year, if applicable.
Frequently Asked Questions
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What is the Bank Loan Processing Fee Reimbursement Scheme?
It is a scheme designed to reimburse up to 80% (or ₹1,00,000 maximum) of the bank loan processing fees for SC/ST MSEs when they secure business loans. -
What are the scheme benefits?
The scheme alleviates the upfront financial burden of processing fees, thereby enhancing access to capital and supporting the growth of SC/ST-owned businesses. -
Who can get the scheme benefits?
Benefits are available to SC/ST entrepreneurs who own or represent an MSME and are availing business loans from recognized financial institutions. -
Is there a limitation on availing the benefits of this scheme?
Yes, the reimbursement is limited to 80% of the fee or up to ₹1,00,000, excluding GST and applicable taxes. -
What kind of loans are eligible for benefits?
The scheme covers both fund-based and non-fund-based business loans taken from Scheduled Commercial Banks, NBFCs, or State Finance Corporations. -
How should I apply to avail the benefit?
The application is online through the official website scsthub.in where you must register, log in, complete the required details, and upload the necessary documents. -
Can I combine this scheme benefit with another scheme?
Please refer to the official guidelines for details regarding the concurrent use of benefits under different schemes.