The Ministry of Social Justice and Empowerment offers Safai Karamchari, Manual Scavengers, and their dependents who are at least eighteen years old a general term loan program.
Term Loan
For any feasible income-generating projects, including those pertaining to sanitation, up to 90% of the unit cost, with a maximum unit cost of Rs. 15.00 lacs, at an interest rate of 6%.
Note
- The target population receives term loans under this program from State Channelizing Agencies (SCA), Regional Rural Banks (RRBs), and Nationalized Banks.
- With a maximum project cost of Rs. 15.00 lac, this initiative offers help for any feasible income-generating projects, including those pertaining to sanitation.
Advantages
Term Loan
For any feasible income-generating projects, including those pertaining to sanitation, up to 90% of the unit cost, with a maximum unit cost of Rs. 15.00 lacs, at an interest rate of 6%.
Repayment Duration
- Depending on the unit’s sustainability, profitability, and ability to repay, up to ten years may pass following:
- A four-month implementation phase.
- A six-month moratorium.
- The loan distribution date.
- Up to 90% of the unit cost may be lent out as a general term loan. The State Channelizing Agencies are responsible for providing the remaining 10% share through loans, subsidies, promotional contributions, or any other available funding sources.
- For projects up to Rs. 2 lac, the promoter’s contribution is not required.
- NSKFDC requires a minimum promoter contribution of 5% from the beneficiaries for projects over Rs. 2.00 lac.
Note
Loans are given to the target population by Channelizing Agencies (CAs), such as Public Sector Banks (PSBs), Regional Rural Banks (RRBs), and State Channelizing Agencies (SCAs).
Qualifications
The following individuals or organizations will be deemed qualified to receive financial aid under the various NSKFDC programs:
- Safai Karamcharis, including Wastepickers; recognized Manual Scavengers; and their dependents.
- The target group’s registered cooperative societies.
- Individuals who present a certificate from a local revenue officer, municipal officer, cantonment executive officer, railway officer, head of a government department (such as schools, colleges, forestry, health, education, or animal husbandry) with a rank at least equal to gazetted officer, elected members of municipal bodies, pradhan of gram panchayats, or regional managers of regional rural banks (RRBs) or public sector banks (PSBs) should be encouraged by the target group.
However, in accordance with the MS Act of 2013, once a person’s name appears in the final list of Manual Scavengers created by State Governments/Union Territory Administration, they are exempt from providing any certificates (source, source).
- The head of a municipal body without gazetted officers may be the competent authority in cases when the Mukhia, Sarpanch, President, or any other authority comparable to the Pradhan of the Gram Panchayat issues an occupation certificate to Safai Karamcharis or dependents.
Procedure for Applications
Not Online
- The closest Channeling Agency should be contacted by any interested and qualified individual (source).
Online Applications
- The district offices of SCAs of NSKFDC of RRBs and Nationalized Banks receive online loan applications from applicants.
- These applications are subsequently forwarded to the central office, where SCAs, RRBs, and Nationalized Banks evaluate the project proposal.
- The projects and recommendations are then returned to NSKFDC.
- The proposals are subsequently evaluated by the NSKFDC Project Appraisal Committee, which ultimately presents them to the board of directors for approval.
- SCAs, RRBs, and nationalized banks issue the letter of sanction when the board of directors gives its approval.
- The required paperwork and money are then made available to the relevant beneficiaries after all terms and conditions have been agreed upon.
- After considering all release factors in accordance with NSKFDC’s Lending Policies & Guidelines (LPG), the funds were issued upon demand from SCAs, RRBs, and nationalized banks.
Required Documents
- Aadhaar Card (optional).
- Certificate of Occupation.
Frequently Asked Questions
How long is the moratorium?
The time length wherein the borrower is exempt from paying the principal and interest amounts of the loan is called a moratorium. Usually, such time length differs as per loan terms under this scheme. A certain time is given to lift up the financial tension.
Are all unorganized workers eligible for loans under the scheme?
Indeed, the program’s purpose is to support unorganized workers; however, eligibility requirements such as occupation, income, and paperwork are all mandatory. To get more details, refer to the official document.
How does the scheme help?
The scheme offers this support by means of loans, grants, or subsidies to enable access to a specific requirement such as launching a business, developing new skills, or raising the standard of living. However, the concern normally arises from banks or other financial institutions and the government agencies offering the aid.
Is there an income cap?
Indeed, most schemes have a ceiling on the income to ensure that the aid reaches the targeted beneficiaries, particularly those in the lower and middle ranges of income. Scheme-specific ceilings vary.
What types of projects are available under this scheme?
Typically, small-scale businesses, entrepreneurial activities, skills development projects, and infrastructure-related projects are eligible. Ensure that it is aligned with the objectives of the scheme.
Am I qualified for the program because I work as a domestic worker?
Yes, by all means. Most domestic workers qualify for the program, but this would only happen if they are able to provide proof of their employment and income.
Am I qualified for the program because I work as a waste picker?
Indeed, plans that target unorganized workers frequently include rubbish pickers. To be eligible, they might have to present pertinent paperwork or evidence of their line of work.