Credit Based Schemes For SC - Term Loan (TL)

Key facts

Benefit	Loan up to ₹5 lakh
Who	Scheduled Caste entrepreneurs
Income limit	₹3 lakh
How paid	95% of project costs
Implemented by	Ministry of Social Justice and Empowerment
Official portal	nsfdc.nic.in
Application window	Open all year for eligible applicants

Benefits

Beneficiaries can receive a term loan covering up to 95% of project costs, with a maximum amount of ₹5 lakh. The loan is offered at interest rates ranging from 6% to 9%, depending on the amount.

Who can apply

Household income ≤ ₹3,00,000/year
For: entrepreneur
Category: SC
not income tax payer
no government employee in family
poor household

This scheme is available to entrepreneurs from the Scheduled Caste community with an annual family income not exceeding ₹3 lakh. Applicants must not be income tax payers, should not have any government employees in their family, and must belong to a poor household.

How to apply

Interested individuals should approach the nearest Channelizing Agency to apply for the loan.

Contact the nearest Channelizing Agency for assistance.
Obtain the loan application form in the required format.
Fill out the application with details of the business and required documents.
Submit the application to the District Office of the State Channelizing Agency.
The application will be scrutinized and forwarded to the Head Office for appraisal.
If approved, a Sanction Letter will be issued with terms and conditions.
Accept the terms and conditions to receive the loan disbursement.

Apply on the official website ↗

Documents required

Aadhaar Card
Income certificate
Caste certificate
Bank account statement

Common problems and how to fix them

Problem	What to do
Application rejected	Ensure all required documents are submitted and meet eligibility criteria.
Loan not disbursed	Contact the Channelizing Agency to check the status of your application.

Frequently asked questions

What is the moratorium period?

The moratorium period is a specified time during which the borrower is not required to make any repayments on the loan.

Who is eligible for loans under this scheme?

Loans are available only to economically disadvantaged individuals from the Scheduled Caste community with an annual family income up to ₹3 lakh.

How can I apply for this scheme?

Applicants should contact the Channelizing Agencies to obtain the necessary application form and guidance on the process.

What types of projects are eligible for funding?

Eligible projects include those in agriculture, small industries, and service sectors, such as dairy farming, garment manufacturing, and retail shops.

What documents are required for the application?

Applicants need to provide an Aadhaar Card, income certificate, caste certificate, and a bank account statement.

Key terms explained

SC / ST / OBC: Official social categories — Scheduled Castes, Scheduled Tribes and Other Backward Classes — used for reservations and targeted welfare schemes.

Always confirm the latest details on the official portal before applying.