§1Who it is for

  • Scheduled Caste entrepreneurs

Useful if

SC entrepreneurs with a project up to ₹50 lakh

Do not spend time on it if

Non-SC applicants

§2Eligibility

  1. The applicant should be an entrepreneur of the Scheduled Caste Category.
  2. The applicant should submit a viable project proposal for an income-generating activity.
  3. The applicant should apply through a State Channelising Agency, Regional Rural Bank, Public Sector Bank, or other channelising agency associated with NSFDC.
  4. The project proposal should be appraised and found viable by the concerned channelising agency.

§3Benefits

  • Financial assistance of up to 95% of the project cost for income-generating activities, subject to a maximum project cost of ₹50,00,000/-.
  • The beneficiary is required to contribute
  • 2% of the project cost for projects up to ₹5,00,000/
  • 3% for projects above ₹5,00,000/- and up to ₹10,00,000/
  • 5% for projects above ₹10,00,000/-.
  • Beneficiaries living below the poverty line may receive a subsidy of ₹10,000/- or 50% of the unit cost, whichever is less.
  • Interest rates payable by beneficiaries are
  • 6% per annum for loans up to ₹5,00,000/
  • 8% per annum for loans above ₹5,00,000/- and up to ₹10,00,000/
  • 9% per annum for loans above ₹10,00,000/- and up to ₹50,00,000/-.
  • Through State Channelizing Agencies, Regional Rural Banks, Public Sector Banks, and other channelizing agencies associated with NSFDC.

§4Norms — pattern of assistance

  1. The scheme "Credit Based Schemes For SC - Term Loan (TL)" by the National Scheduled Castes Finance and Development Corporation (NSFDC), Government of India, aims to provide financial assistance for income-generating activities and economic development of Scheduled Caste beneficiaries. Through this scheme, term loans are provided for viable projects with a unit cost of up to ₹50,00,000/-. The scheme is implemented by the National Scheduled Castes Finance and Development Corporation through State Channelising Agencies, Regional Rural Banks, Public Sector Banks, and other channelising agencies.
  2. Financial assistance of up to 95% of the project cost for income-generating activities, subject to a maximum project cost of ₹50,00,000/-.
  3. 2% of the project cost for projects up to ₹5,00,000/
  4. 3% for projects above ₹5,00,000/- and up to ₹10,00,000/
  5. 5% for projects above ₹10,00,000/-.
  6. Beneficiaries living below the poverty line may receive a subsidy of ₹10,000/- or 50% of the unit cost, whichever is less.
  7. 6% per annum for loans up to ₹5,00,000/
  8. 8% per annum for loans above ₹5,00,000/- and up to ₹10,00,000/
  9. 9% per annum for loans above ₹10,00,000/- and up to ₹50,00,000/-.

§5Documents

Tick each one as you get it ready.

§6How to apply

  1. 1

    [Offline] The interested eligible person shall contact the nearest Channelling Agency (https://nsfdc.nic.in/channel-patrners/ ).

  2. 2

    Indicative Format

  3. 3

    https://nsfdc.nic.in/UploadedFiles/other/form/termloan-english.pdf

  4. 4

    The loan applications are to be submitted by the eligible target group (Scheduled Castes persons having annual family income up to Rs. 3.00 lakhs ) to the District Offices of State Channelising Agencies (SCAs).

  5. 5

    The District Offices of SCAs/CAs forward these applications, after scrutiny, to their Head Offices. The viability of the project proposals is appraised by the SCAs, and the viable projects are forwarded to NSFDC along with their recommendations for sanction.

  6. 6

    Eligible target group can also submit their loan application to other Channelising Agencies of NSFDC, such as Regional Rural Banks/ Public Sector Banks/ NBFC-MFIs, etc., with whom NSFDC has signed Memoranda of Agreements.

  7. 7

    The said project proposals are appraised by the Project and Banking Desk. The appraisal report is submitted to the Project Clearance Committee (PCC) for their concurrence.

  8. 8

    The proposals that are found to be in order are recommended for sanction. After sanction, Sanction Letters, called Letters of Intent (LOIs), along with Terms & Conditions, are issued to the SCAs/ RRBs/ Public Sector Banks/ NBFC-MFIs, etc. for acceptance.

  9. 9

    After acceptance of the terms and conditions of the sanction and fulfilment of Prudential Norms, as applicable, funds are disbursed to the SCAs/ RRBs/Nationalised Bank for onward disbursement to the beneficiaries.

  10. 10

    The disbursement of funds is made by NSFDC on receipt of demand from the SCAs/ RRBs/ Public Sector Banks/ NBFC MFIs. The loans are to be repaid by the beneficiaries as per the repayment schedule stipulated by the SCAs/CAs.

§7Pros and cons

Merits

  • Up to 95% of project cost financed
  • Own contribution only 2-5%

Demerits

  • Routed through channelising agencies
  • Maximum project cost ₹50 lakh

→Related schemes

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Sources

  1. myScheme — Credit Based Schemes For SC - Term Loan (TL)
  2. Official Website

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.