The Credit Based Schemes For SC – Term Loan (TL) is a loan scheme initiated by the Ministry of Social Justice and Empowerment to support entrepreneurs from the Scheduled Caste category. The scheme, implemented through NSFDC (National Scheduled Castes Finance and Development Corporation), offers term loans covering up to 95% of the project cost. The assistance is provided subject to the eligible beneficiaries contributing their share as per the scheme guidelines and obtaining additional subsidies or financial resources from other sources.
Quantum of Assistance & Interest Rates
- For projects up to ₹5.00 lakh:
- Loan amount: Up to 95% of project cost
- Interest rate: 6%
- For projects above ₹5.00 lakh and up to ₹10.00 lakh:
- Loan amount: Up to 95% of project cost
- Interest rate: 8%
- For projects above ₹10.00 lakh and up to ₹50.00 lakh:
- Loan amount: Up to 95% of project cost
- Interest rate: 9%
Funding Structure Based on Family Income
- Beneficiaries with annual family income up to ₹1.50 lakh:
- Receive at least 50% of funding
- Beneficiaries with annual family income above ₹1.50 lakh and up to ₹3.00 lakh:
- Receive the balance 50% of funding
Repayment & Moratorium Periods
- Repayment:
- The term loan is repaid in quarterly, half-yearly, or yearly installments over a maximum period of 10 years.
- Moratorium Period:
- Ranges from 6 to 12 months, depending on the nature of the business activity.
Eligibility Criteria
- The scheme is exclusively for entrepreneurs from the Scheduled Caste (SC) category.
- Eligible applicants must be Scheduled Caste persons with an annual family income up to ₹3.00 lakh.
Application Process
Offline Submission Process:
- Contact a Channeling Agency:
- Eligible persons should contact the nearest Channeling Agency.
- A list of Channeling Agencies is available on the NSFDC website (Channel Partners).
- Submit Application:
- Applicants submit their loan application (in NSFDC’s prescribed format) along with supporting documents at the District Offices of the State Channelizing Agencies (SCAs) or other designated agencies like Regional Rural Banks, Public Sector Banks, or NBFC-MFIs with whom NSFDC has an MoU.
- Scrutiny and Appraisal:
- The District Offices of SCAs/CAs scrutinize the applications and forward viable project proposals along with recommendations to NSFDC.
- The project proposals are appraised by the Project and Banking Desk and reviewed by the Project Clearance Committee (PCC).
- Sanction and Disbursement:
- Upon successful appraisal, sanction letters (Letter of Intents, LOIs) along with terms and conditions are issued to the respective agencies.
- Funds are disbursed by NSFDC after receiving a demand from the Channelizing Agencies.
Documents Required
Applicants are required to submit an application in NSFDC’s prescribed format along with:
- Aadhaar Card
- Income Certificate
- Caste Certificate
- Bank Account Statement
- Details of the business and relevant experience, as well as other supporting documents as per the agency’s requirements.
Frequently Asked Questions (FAQs)
- What is the moratorium period?
It is the period (6 to 12 months) during which the borrower is not required to repay the loan, varying with the nature of the business activity. - Does the scheme provide loans to all Scheduled Castes persons?
Loans are available exclusively to Scheduled Caste entrepreneurs whose annual family income is up to ₹3.00 lakh. - How does the scheme provide assistance?
The scheme offers term loans covering up to 95% of the project cost, with additional funding conditions based on the applicant’s annual family income. - What types of projects are eligible?
Projects that are viable and meet the criteria laid out by NSFDC and the respective Channelizing Agencies are eligible for funding. - Where can I find the application format?
The indicative application format can be viewed and downloaded from NSFDC’s website (Indicative Format).