The Ministry of Social Justice and Empowerment offers a general term loan scheme for Safai Karamcharis, Manual Scavengers, and their dependents aged 18 years and above. The scheme provides financial assistance for any viable income generating schemes, including sanitation-related activities, with loans extended through State Channelising Agencies (SCAs), Regional Rural Banks (RRBs), and Nationalised/Public Sector Banks.
Benefits
- General Term Loan Scheme – ₹15 Lakh Loan for Safai Karamcharis
- Up to 90% of the unit cost with a maximum unit cost of Rs.15.00 lacs.
- Interest rate of 6% for eligible income generating schemes.
- Repayment Period:
- Up to 10 years after an implementation period of 4 months, including a moratorium period of 6 months from the date of loan disbursement.
- NSKFDC Loan Scheme -Funding Structure:
- The scheme covers up to 90% of the project cost through the loan, while the remaining 10% must be contributed by the State Channelising Agencies through a loan, subsidy, promoter’s contribution, or other available sources.
- For projects costing up to Rs.2.00 lacs, promoter’s contribution is not required.
- For projects costing more than Rs.2.00 lacs, a minimum promoter’s contribution of 5% is required by NSKFDC.
Eligibility
Eligible beneficiaries include:
- Safai Karamcharis (including Waste Pickers) and identified Manual Scavengers along with their dependents.
- Registered co-operative societies of the target group.
- Legally constituted associations or firms promoted by the target group.
- Individuals who can produce a certificate from a local Revenue Officer, Municipal Officer, Cantonment Executive Officer, Railway Officer, or head of a government department (such as Schools, Colleges, Forest, Health, Education, Animal Husbandry) with a rank not less than a Gazetted Officer; or from elected members of the Municipal Body, Pradhan of Gram Panchayats, or Regional Managers of RRBs/PSBs.
- Note: Under the MS Act, 2013, if a person is already identified as a Manual Scavenger in the final list prepared by the State Government/Union Territory Administration, no further certificate is needed.
- Mukhia/Sarpanch/President or any authority equivalent to the Pradhan of Gram Panchayat who can issue an Occupation Certificate to Safai Karamcharis/dependents; in Municipal Bodies without Gazetted Officers, the head of the Municipal Body may act as the Competent Authority.
Application Process
Offline
- Interested and eligible persons are advised to contact the nearest Channelising Agency.
- For a list of Channelising Agencies, visit the NSKFDC Channelising Agencies page.
Online
- Loan applications are submitted by the applicants to the district offices of SCAs of NSKFDC of RRBs and Nationalised Banks.
- These applications are then sent to the head offices where the project proposal is appraised by SCA/RRBs/Nationalised Banks and the projects are sent back to NSKFDC along with recommendations.
- The Project Appraisal Committee of NSKFDC then appraises the proposals and after finding them in order places it in front of their board of directors for their approval.
- Once the board of directors approves the project, the letter of sanction is issued by SCAs/ RRBs/Nationalised Banks.
- Once all the terms and conditions have been accepted, the necessary documents and funds are then released to the concerned beneficiaries.
- NSKFDC released the funds with the receipt of demand being made from the SCAs/ RRBs/Nationalised Banks after taking into consideration all the parameters of release as per the Lending Policies & Guidelines (LPG) of NSKFDC
Documents Required
Indicative documents include:
- Aadhaar Card (not mandatory)
- Occupation Certificate
Frequently Asked Questions
-
What is the moratorium period?
The scheme includes a moratorium period of 6 months from the date of loan disbursement, following an implementation period of 4 months. -
Does the scheme provide loans to all unorganized workers?
No, the scheme specifically targets Safai Karamcharis, Manual Scavengers, Waste Pickers, and their dependents. -
How does the scheme provide assistance?
Assistance is provided as a general term loan covering up to 90% of the unit cost for eligible income generating schemes. -
Is there any income limit for the scheme?
The scheme does not specify an income limit but focuses on the target group as mentioned. -
With what type of projects can I avail of this scheme?
The scheme supports any viable income generating schemes, including sanitation-related activities. -
I am a Domestic Worker, am I eligible for the scheme?
The scheme is designed specifically for Safai Karamcharis, Manual Scavengers, and Waste Pickers along with their dependents. -
I am a Waste Picker, am I eligible for the scheme?
Yes, Waste Pickers and their dependents are included in the target group.