Loan based Scheme for Pay and Use Community Toilets
Category: Banking,Financial Services and Insurance, Social welfare & Empowerment, Utility & Sanitation
Level: Central | State: All
Ministry: Ministry Of Social Justice and Empowerment

Details:
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:**

   1. 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.
   1. To ensure proper maintenance of the facilities.
   1. To prevent the necessity of manual scavenging.

**Key Features:**

   1. **Loan for Construction &amp; Operation:** Financial assistance is provided to build and operate 10-seater community toilet units on a pay-and-use basis.   1. **Maximum Loan Amount:** Up to ₹25 lakh for one unit.   1. **Interest Rates:** 4% per annum; 3% for women beneficiaries; 2.5% for timely repayment.   1. **Repayment Period:** Up to 10 years, including 6 months moratorium on principal repayment.

Benefits:
Livelihood: 
Enables Safai Karamcharis to shift from manual scavenging to a respectable, income-generating sanitation business.
Collateral-Free, Low-Interest Loan:
 Offers up to ₹25 lakh without collateral, at just 4% interest (even lower for women and timely repayment).
Moratorium period: 
Six Months in addition to implementation period of six months.
Repayment period: 
10 Years after implementation period of 180 days and moratorium of 180 days
Entrepreneurship Opportunity:
 Encourages self-employment by allowing beneficiaries to construct and operate public “Pay and Use” toilet units.

Eligibility Criteria:
Indian citizens aged 18 years or above are eligible belonging to the category of:

   1. Safai Karamcharis
   1. Manual scavengers
   1. Dependents of the above groups

Individual beneficiaries/ self-help groups from the target group of NSKFDC, through State Channelizing Agencies (SCAs), in collaboration with reputed organizations are eligible to apply for the scheme.
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**Note:**

   1. Scavenger/Safai Karamchari and their dependents duly identified under the National Scheme for Liberation &amp; Rehabilitation of Scavengers (NSLRS) in a survey/registered co-operative societies of Safai Karamcharis/legally constituted association/firm promoted by the target group and also all those who produce a certificate from local Revenue Officer/local Municipal Officer/Cantonment Executive Officer/Railway Officer, Head of the Govt. Departments (i.e. Schools, Colleges, Forest, Health, Education, Animal Husbandry) having rank not less than Gazetted Officer, Elected Members of Municipal Body &amp; Pradhan of Gram Panchayats for which the State Govt. is required to issue necessary notification, Regional Managers of the Regional Rural Banks/Nationalised Banks. 
   1. However, under the MS Act, 2013, a person identified as Manual Scavenger in a survey need not to provide any certificate once his/her name appeared in the final list of Manual Scavengers prepared by State/UT Governments.