Loan Based Schemes For Safai Karamchari - General Term Loan (GTL)
General Term Loan scheme by National Safai Karamcharis Finance and Development Corporation (NSKFDC) for safai karamcharis, manual scavengers, and their dependants to start any viable income-generating business — up to 90% of project cost at 6% interest.
About This Scheme
General Term Loan scheme by National Safai Karamcharis Finance and Development Corporation (NSKFDC) for safai karamcharis, manual scavengers, and their dependants to start any viable income-generating business — up to 90% of project cost at 6% interest.
Full official description
A general term loan scheme by the Ministry of Social justice and Empowerment for Safai Karamchari, Manual Scavengers, and their dependents aged 18 years and above.
Term loan:
Up to 90% of the unit cost with a maximum unit cost of Rs.15.00 lacs at an interest rate of 6%, for any viable income generating schemes including sanitation-related activities.
Note:
- Under this scheme, term loans are extended through State Channelising Agencies (SCA), Regional Rural Banks(RRBs), and Nationalised Banks to the target group.
- Under this scheme assistance is provided for any viable income generating schemes including sanitation-related activities with a maximum project cost of Rs.15.00 lac.
Benefits
- Loan amount: Up to 90% of project cost, with a maximum unit cost of ₹15,00,000
- Interest rate: 6% per annum
- Repayment period: Up to 10 years (with implementation period grace)
- Eligible uses: Any viable income-generating activity including sanitation-related businesses
Who Can Apply (Eligibility)
Safai karamchari (sanitation worker), manual scavenger, or their dependant, aged 18 or above. Must use the loan for an income-generating activity.
How to Apply
Interested eligible person shall contact nearest Channeling Agency (https://nskfdc.nic.in/en/content/home/list-channelizing-agencies)
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
Frequently Asked Questions
What is moratorium period?
A moratorium period refers to a particular period of a loan tenure during which the borrower does not have to repay anything. It can be described as a waiting period before the borrower will have to start paying the equated monthly installments (EMIs) for his or her loan
Does the scheme provide loans to all Unorganized Workers persons?
No, the scheme provides loans only to Safai Karamchari, Manual Scavengers and their dependants
How does the scheme provide assistance?
Under this scheme, term loans are extended through State Channelising Agencies (SCA), Regional Rural Banks(RRBs) and Nationalised Banks to the target group.
Is there any income limit for the scheme?
No, there is no such limit mentioned in the guidelines, however , other things being equal, NSKFDC accords priority to economic development and rehabilitation of:- i) Manual Scavengers and amongst scavengers those scavengers whose income is below double the poverty line; ii) Women from among the target group and iii) Disabled persons among the target group. * Financial viability, income generating capacity of the project etc. are considered while evaluating the projects for financing.
With what type of Projects can I avail this schemes?
Any viable and income generating schemes are financed by NSKFDC to Safai Karamcharis, Scavengers and their dependents. As per the project proposals received from the SCAs, the following sectors are given priority by the target group:- Transport Small and Petty Business Non-land based schemes Sanitation based equipments
I am a Domestic Worker, am I eligible for the scheme?
No, You are not eligible.
I am a Waste Picker, am I eligible for the scheme?
Yes, You are eligible.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Indicative Documents
- Aadhaar Card (not mandatory)
- Occupation Certificate