The Green Business Scheme has been launched by the National Safai Karamcharis Finance and Development Corporation (NSFDC) to provide financial assistance in the form of loans for income-generating activities that also mitigate the impacts of climate change. The scheme supports activities aimed at reducing the Green House effect and those classified as adaptation initiatives. Indicative schemes under this program include Battery Electric Vehicles (E-rickshaws), Compressed Air Vehicles, Solar Energy Gadgets, and Poly Houses.
Benefits
- Quantum of Loan:
- Up to 90% of the unit cost is financed, with a maximum loan amount of Rs. 2 lakh, subject to adjustments for available subsidies.
- Promoters’ Contribution:
- A minimum contribution of 10% of the unit cost is required from the promoter.
- Need-Based Assistance:
- NSFDC provides loans as per the NSFDC Term Loan Lending Policy, considering any Special Central Assistance (SCA) or other government subsidies (including those for BPL beneficiaries under the Special Component Plan), up to a cap of ₹10,000 or 50% of the unit cost, whichever is less.
- Interest Rates:
- For unit costs up to Rs. 7.50 Lakh:
- Maximum Loan Limit: Rs. 6.75 lakh
- Interest Rates: 2% per annum (SCA/CA share) and 4% per annum (beneficiary share), with a 1% interest rebate for female beneficiaries.
- For unit costs above Rs. 7.50 Lakh and up to Rs. 15.00 Lakh:
- Maximum Loan Limit: Rs. 13.50 lakh
- Interest Rates: 3% per annum (SCA/CA share) and 6% per annum (beneficiary share).
- For unit costs above Rs. 15.00 Lakh and up to Rs. 30.00 Lakh:
- Maximum Loan Limit: Rs. 27.00 lakh
- Interest Rates: 4% per annum (SCA/CA share) and 7% per annum (beneficiary share).
- For unit costs up to Rs. 7.50 Lakh:
- Repayment Terms:
- The loan is repayable in quarterly installments over a maximum period of 10 years, which includes a 6-month moratorium period. Additionally, a 120-day moratorium is allowed for fund utilization by the SCA.
Eligibility
- The scheme is open to Safai Karamcharis, Scavengers, and their dependents.
Application Process
Offline
- Submission:
Beneficiaries are required to submit loan applications to the District Offices of State Channelizing Agencies (SCAs) of NSFDC, branches of Regional Rural Banks (RRBs), or Nationalised Banks. - Scrutiny and Appraisal:
The submitted applications are reviewed and sent from the District Offices/Branches to their Head Offices. The viability of the project proposals is appraised by the respective SCAs, RRBs, or Nationalised Banks, and viable projects are then forwarded to NSFDC along with recommendations.
Online Process
Step 3: Click on Loan application form.
Step 4: Fill in all the details and tap on save to save the application form.
Documents Required
- Aadhaar Card
- Driving License
- Bank Details
- Caste Certificate
- Income Certificate
- Domicile Certificate
Frequently Asked Questions
- What is the interest rate offered by the scheme?
Interest rates vary based on the unit cost of the project. For unit costs up to Rs. 7.50 Lakh, the interest is 2% (SCA/CA share) and 4% (beneficiary share), with rates increasing for higher unit costs. - What is the loan amount offered under the scheme?
The loan covers up to 90% of the unit cost, with the maximum loan amount capped at Rs. 2 lakh, subject to adjustments based on available subsidies. - What is the repayment tenure of the loan?
The loan must be repaid in quarterly installments over a maximum period of 10 years, including a 6-month moratorium period and an additional 120-day moratorium for fund utilization. - What activities are eligible for a loan under the scheme?
Eligible activities include income-generating projects that mitigate the impacts of climate change, such as projects involving Battery Electric Vehicles (E-rickshaws), Compressed Air Vehicles, Solar Energy Gadgets, and Poly Houses. - What is the purpose of availing the loan amount?
The loan is intended to finance environmentally sustainable and income-generating initiatives that contribute to reducing the Green House effect and promote adaptation to climate change.