Govt Loan Scheme for Safai Karamcharis & Manual Scavengers – Apply NowScheme StatusScheme Status

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.

Sources and References

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