Loan Based Schemes For Safai Karamchari – Swachhta Udyami Yojana – Swachhta Se Sampannta Ki Aur: For Safai Karamcharis, Manual Scavengers, and their dependents who are at least eighteen years old, the Ministry of Social Justice and Empowerment provides a term loan program designed to help them buy vehicles linked to sanitation and engage in revenue-generating activities.
The program’s lending coverage includes the provision of term loans via Public Sector Banks (PSBs), Regional Rural Banks (RRBs), and State Channelizing Agencies (SCAs).
Details of the Unit Cost and Subsidy
- Cost per unit: Up to ₹5 Lakh
- Capital Subsidy: 50% of the unit cost.
- Cost per unit: ₹5–10 Lakh
- The maximum amount of the capital subsidy is ₹3.25 lakh, which is equal to ₹2 lakh plus 25% of the unit cost beyond ₹5 lakh.
- Cost per unit: ₹10–15 Lakh
- Capital Subsidy: ₹3.25 lakh.
- Note: There is no need for a beneficiary contribution. Under the SUY program, the remaining sum—after subtracting the capital subsidy—is given as a loan.
Benefits
- Maximum Loan Amount: ₹50 Lakh for any feasible source of revenue, including projects pertaining to sanitation.
- Interest Rate: 4% annually.
Rebates
- 1% reimbursement for female recipients.
- 0.5% refund for on-time repayment.
Duration of Repayment
- Up to ten years, which includes:
- A four-month implementation phase.
- A six-month moratorium period.
Qualifications
The following people qualify for financial aid under NSKFDC programs:
- People:
- Waste pickers and other Safai Karamcharis.
- Manual scavengers and their dependents listed in the MS Act of 2013.
- Organizations:
- The target group’s registered cooperative societies.
- Legally recognized organizations or businesses that the target group supports.
Certification Documentation
- Certificate from a local revenue officer, municipal official, or other appropriate authority (such as the heads of the health or education departments, the Sarpanch/Pradhan of Gram Panchayats, etc.).
- By Hand: Additional certificates are not required for scavengers identified in the official state survey under the MS Act.
Procedure for Applications
- Loan Application Submission:
Through the district offices of SCAs, RRBs, or Nationalized Banks, applications may be filed offline or online. - Processing:
- After reviewing the proposal, the concerned agency sends it to NSKFDC for additional assessment.
- A sanction letter is issued by the board of directors after approval.
- Distribution of Funds:
- The beneficiaries receive their money after the requirements and conditions are met.
Documents Needed
- Individual Records:
- PAN Card.
- Address Proof.
- Work Documents:
- Letter of Work Assurance.
- A Certificate of Occupation.
- Work Report.
- Quotes:
- Three quotes for the necessary equipment.
FAQs
- How long is the moratorium?
There is a six-month grace period before repayment starts. - Do domestic workers qualify?
No, domestic workers are not qualified. - Does the scheme have an income cap?
There is no set income threshold for eligibility. - Are waste pickers eligible to apply?
Waste pickers are indeed covered under the program. - How do beneficiaries benefit from the scheme?
By offering loans and subsidies for income-generating and sanitation-related projects through SCAs, RRBs, and PSBs.