Loan based Scheme for Pay and Use Community Toilets
A loan scheme by the Ministry of Social Justice (via NSKFDC) for Safai Karamcharis and manual scavengers to build and operate 10-seater "Pay and Use" community toilet units — helping them transition from manual scavenging into a stable, income-generating livelihood. Loans of up to ₹25 lakh per unit are available at a low 4% interest rate (3% for women; 2.5% for timely repayers) with a 10-year repayment period. To apply, contact the nearest State Channelizing Agency listed at nskfdc.nic.in.
About This Scheme
A loan scheme by the Ministry of Social Justice (via NSKFDC) for Safai Karamcharis and manual scavengers to build and operate 10-seater "Pay and Use" community toilet units — helping them transition from manual scavenging into a stable, income-generating livelihood. Loans of up to ₹25 lakh per unit are available at a low 4% interest rate (3% for women; 2.5% for timely repayers) with a 10-year repayment period. To apply, contact the nearest State Channelizing Agency listed at nskfdc.nic.in.
Full official description
The Pay and Use Community Toilets Scheme was**** launched by the Ministry of Social Justice and Empowerment, aims to empower Safai Karamcharis and their dependents through livelihood-linked sanitation entrepreneurship. It is a Loan Based Scheme implemented by the National Safai Karamcharis Finance and Development Corporation (NSKFDC). The Loans are extended through Channelizing Agencies (CAs) i.e. State Channelizing Agencies (SCAs), Regional Rural Banks (RRBs) and Public Sector Banks (PSBs) to the target group. The key objective of this scheme is to promote entrepreneurship among Safai Karamcharis, manual scavengers, and their dependents by providing financial assistance to set up “pay and use” community toilets. Purpose:
Provision of easy accessibility of the community latrines to the households (not having any such facilities in their houses) and for floating population in public places with high footfall e.g. bus stands, railway stations, markets etc.
To ensure proper maintenance of the facilities.
To prevent the necessity of manual scavenging.
Key Features:
- Loan for Construction & Operation: Financial assistance is provided to build and operate 10-seater community toilet units on a pay-and-use basis.
- Maximum Loan Amount: Up to ₹25 lakh for one unit.
- Interest Rates: 4% per annum; 3% for women beneficiaries; 2.5% for timely repayment.
- Repayment Period: Up to 10 years, including 6 months moratorium on principal repayment.
Benefits
- Loan of up to ₹25 lakh per community toilet unit (10-seater), no collateral required
- Interest rate: 4% per annum (3% for women; 2.5% for consistent on-time repayment)
- 6-month moratorium on principal after the 6-month implementation period (total ~12 months before EMIs start)
- Repayment period: up to 10 years
- Enables self-employment through operating a public sanitation business
- Promotes dignified livelihood away from manual scavenging
Who Can Apply (Eligibility)
- Indian citizens aged 18 years or above belonging to:
- Safai Karamcharis
- Identified manual scavengers
- Dependents of the above groups
- Can apply individually or as a Self-Help Group (SHG)
- Must be identified in government surveys or produce a certificate from a Revenue/Municipal/Railway Officer of gazetted rank or higher
- Manual scavengers listed in the government's MS Act 2013 survey do not need a separate certificate
Exclusions
Individuals who are not Safai Karamcharis, manual scavengers, or their dependents are not eligible for this scheme.
The scheme provides loans, not grants or subsidies.
Construction of private or home toilets is not allowed under this scheme.
The maximum loan cap is ₹25 lakh. Any additional cost beyond this has to be borne by the beneficiary.
How to Apply
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.
Interested eligible person shall contact nearest Channeling Agency.
The list of state wise Channelizing Agencies may be accessed by visiting the website.
Frequently Asked Questions
Who is eligible to apply for the scheme?
Safai Karamcharis, manual scavengers and their dependents are eligible. Applicants must be aged 18 years or above and belong to the target group defined under the scheme.
What is the maximum financial assistance available under the scheme?
A maximum loan of ₹25 lakh is available for setting up Pay and Use Community Toilets, including construction, operation, and maintenance.
What is the rate of interest on the loan?
The standard interest rate is 8% per annum. However:
Women beneficiaries get a 1% rebate.
A 0.5% rebate is provided for timely repayment.
What is the repayment period for the loan?
The loan is to be repaid in 10 years, which includes:
A 180-day moratorium period after implementation.
A 180-day implementation period after loan sanction.
How can one apply for the scheme?
Applicants must approach the State Channelizing Agency (SCA) or other authorized partners like RRBs, PSBs, or NBFC-MFIs. A formal application with supporting documents must be submitted.
Is collateral required to avail the loan?
Generally, no collateral is required for loans up to ₹1.25 lakh. For higher loan amounts, security norms may vary depending on the Channelizing Agency’s terms.
Can groups like SHGs or cooperatives also apply?
Yes. In addition to individuals, Self-Help Groups (SHGs) and cooperative societies of eligible members can also apply under the scheme.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Proof of identity (e.g., Aadhaar card, voter ID).
- Proof of age (e.g., birth certificate, school certificate).
- Project proposal detailing the plan for the Pay & Use Community Toilet.
- Proof of occupation as a Safai Karamchari or manual scavenger (if applicable).
- Any other documents as specified by the Channelizing Agency.