Credit Based Schemes For SC - Term Loan (TL)
State: Central
Ministry: Ministry Of Social Justice and Empowerment
Department: null
Category: Business & Entrepreneurship, Banking,Financial Services and Insurance, Social welfare & Empowerment
Beneficiary Type: Individual, Registered Societies, Business Entity

The scheme aims to provide financial assistance for viable income-generating activities of Scheduled Caste beneficiaries. Through this scheme, term loans of up to 95% of the project cost are provided for projects costing up to ₹50,00,000/-.

Benefits:
1. Financial assistance of up to 95% of the project cost for income-generating activities, subject to a maximum project cost of ₹50,00,000/-.
1. The beneficiary is required to contribute:

  - 2% of the project cost for projects up to ₹5,00,000/-;
  - 3% for projects above ₹5,00,000/- and up to ₹10,00,000/-;
  - 5% for projects above ₹10,00,000/-.

1. Beneficiaries living below the poverty line may receive a subsidy of ₹10,000/- or 50% of the unit cost, whichever is less.
1. Interest rates payable by beneficiaries are:

  - 6% per annum for loans up to ₹5,00,000/-;
  - 8% per annum for loans above ₹5,00,000/- and up to ₹10,00,000/-;
  - 9% per annum for loans above ₹10,00,000/- and up to ₹50,00,000/-.

> **Mode of Disbursement:** Through State Channelizing Agencies, Regional Rural Banks, Public Sector Banks, and other channelizing agencies associated with NSFDC.

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Eligibility:
1. The applicant should be an entrepreneur of the Scheduled Caste Category.
1. The applicant should submit a viable project proposal for an income-generating activity.
1. The applicant should apply through a State Channelising Agency, Regional Rural Bank, Public Sector Bank, or other channelising agency associated with NSFDC.
1. The project proposal should be appraised and found viable by the concerned channelising agency.

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Application Process:
[Offline]
The interested eligible person shall contact the nearest Channelling Agency (https://nsfdc.nic.in/channel-patrners/ ).
Indicative Format: https://nsfdc.nic.in/UploadedFiles/other/form/termloan-english.pdfThe loan applications are to be submitted by the eligible target group (Scheduled Castes persons having annual family income up to Rs. 3.00 lakhs ) to the District Offices of State Channelising Agencies (SCAs). 
The District Offices of SCAs/CAs forward these applications, after scrutiny, to their Head Offices. The viability of the project proposals is appraised by the SCAs, and the viable projects are forwarded to NSFDC along with their recommendations for sanction. 
Eligible target group can also submit their loan application to other Channelising Agencies of NSFDC, such as Regional Rural Banks/ Public Sector Banks/ NBFC-MFIs, etc., with whom NSFDC has signed Memoranda of Agreements.
The said project proposals are appraised by the Project and Banking Desk. The appraisal report is submitted to the Project Clearance Committee (PCC) for their concurrence. 
The proposals that are found to be in order are recommended for sanction. After sanction, Sanction Letters, called Letters of Intent (LOIs), along with Terms & Conditions, are issued to the SCAs/ RRBs/ Public Sector Banks/ NBFC-MFIs, etc. for acceptance.
After acceptance of the terms and conditions of the sanction and fulfilment of Prudential Norms, as applicable, funds are disbursed to the SCAs/ RRBs/Nationalised Bank for onward disbursement to the beneficiaries. 
The disbursement of funds is made by NSFDC on receipt of demand from the SCAs/ RRBs/ Public Sector Banks/ NBFC MFIs. The loans are to be repaid by the beneficiaries as per the repayment schedule stipulated by the SCAs/CAs.

Documents Required:
Aadhaar Card
Income certificate
Caste certificate
Bank account statement