Loan Based Schemes For Safai Karamchari - Sanitary Marts Scheme
Liberated sanitation workers (Safai Karamcharis), former manual scavengers, and their dependants can borrow up to ₹15 lakh at just 4% interest to open a Sanitary Mart — a one-stop retail shop for sanitation and hygiene products. Women who repay on time pay as little as 2.5% annual interest. Apply through State Channelising Agencies or nationalized banks.
About This Scheme
Liberated sanitation workers (Safai Karamcharis), former manual scavengers, and their dependants can borrow up to ₹15 lakh at just 4% interest to open a Sanitary Mart — a one-stop retail shop for sanitation and hygiene products. Women who repay on time pay as little as 2.5% annual interest. Apply through State Channelising Agencies or nationalized banks.
Full official description
A contributory Loan scheme by Ministry of Social justice and Empowerment for individual beneficiaries/self help groups of Liberated Safai Karamchari, Manual Scavengers and their dependants aged 18 years and above, for setting up A Sanitary Marts (SM) is a one-stop-shop for all things for sanitation and hygiene.
Under this scheme, term loans are extended through State Channelising Agencies (SCA), Regional Rural Banks(RRBs), and Nationalised Banks to the target group.
Loan of Upto 90% of total cost for starting a Sanitary Mart with a maximum of Rs.15.00 lacs
Interest rate:
Interest payable by the beneficiaries shall not exceed 4% per annum (1% p.a. rebate for women beneficiaries and 0.50% rebate for timely repayments.)
Benefits
- Loan up to 90% of total project cost, maximum ₹15 lakh
- Interest rate: maximum 4% per annum
- Women borrowers get 1% rebate; timely repayers get additional 0.5% rebate (minimum 2.5% for women who pay on time)
- Borrower contributes only 10% of total project cost
- Repayment period: up to 10 years in quarterly installments
- Moratorium: 6 months plus 4 months implementation period (10 months total grace period before repayments begin)
Who Can Apply (Eligibility)
- Must be a Safai Karamchari (including waste pickers), identified manual scavenger, or their dependent
- Minimum age: 18 years
- Can also apply as a registered cooperative society, legally constituted association/firm, or SHG of the target group
- Must provide an occupation certificate from a local revenue officer, municipal officer, gazetted government officer, elected municipal member, or Gram Panchayat Pradhan
- Manual scavengers identified in the government survey under MS Act 2013 do not need a certificate
- Domestic workers are NOT eligible
Exclusions
Domestic Workers shall not be eligible for the scheme.
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 (https://nskfdc.nic.in/en/content/home/list-channelizing-agencies)
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 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?
The Scheme Guidelines do not mention any income limit. 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.
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