Term Loan for Scheduled Castes | NSFDC Credit Scheme
Overview
The Term Loan scheme under Credit Based Schemes for Scheduled Castes is implemented by the National Scheduled Castes Finance and Development Corporation (NSFDC) under the Ministry of Social Justice and Empowerment. It provides long-term credit at concessional interest rates to SC individuals for setting up income-generating activities.
Objective
The scheme aims to provide financial independence to individuals from Scheduled Caste communities by facilitating access to institutional credit. It helps them start or expand livelihood enterprises without depending on exploitative informal loans.
Benefits
- Loans up to Rs. 5 lakh per beneficiary
- Concessional interest rates lower than commercial bank rates
- Flexible repayment schedule of up to 7 years
- Can be used for setting up small businesses, trade, or service enterprises
- Channeled through State Channelizing Agencies for ease of access
Eligibility
- Individuals belonging to Scheduled Caste communities as notified by the government
- Annual family income within the prescribed limit (double the poverty line)
- Age between 18 and 55 years
- Must have a viable business plan or project proposal
Exclusions
- Non-SC applicants are not eligible
- Persons who have already defaulted on NSFDC loans
- Applicants already covered under the same scheme in the same purpose category
Application Process
- Contact the State Channelizing Agency (SCA) or state SC/ST corporation in your state
- Obtain and fill the term loan application form
- Submit form with business plan and supporting documents
- SCA verifies eligibility and submits the case to NSFDC
- Loan is sanctioned and disbursed through the SCA’s partner bank
Documents Required
- Scheduled Caste certificate
- Income certificate from a competent authority
- Aadhaar card and residence proof
- Bank passbook copy
- Business plan or project proposal
- Passport-size photographs
