Green Business Scheme: Up to ₹27 Lakh Loan for Green Businesses

The Green Business Scheme is a debt-based funding route for Safai Karamcharis, scavengers and their dependents who want to build a business that earns a livelihood while also doing something for the environment. It is a central government initiative of the Ministry of Social Justice and Empowerment, delivered on the ground by the National Safai Karamcharis Finance and Development Corporation (NSFDC / NSKFDC).

The design tackles two problems together. Communities that have historically been shut out of formal credit get access to capital, and the ventures they build work towards reducing the greenhouse effect or fall within climate adaptation efforts. The result is meant to be both social inclusion and environmental gain.

Support comes as a loan rather than a grant, with the ticket size advertised between roughly ₹90,000 and ₹27 lakh. Interest sits in the 4% to 7% per annum band depending on the loan slab, and repayment can stretch across a maximum of ten years. There is no closing date — applications are accepted on a rolling basis throughout the year.

Ventures typically funded include e-rickshaws and other battery electric vehicles, compressed air vehicles, solar energy gadgets, poly houses for sustainable agriculture, and comparable green business models.

• Loan-based support ranging from ₹90,000 to ₹27 lakh
• Up to 90% of the project's unit cost can be financed
• Interest of 4%–7% per annum, with a 1% rebate for women beneficiaries
• Repayment spread over up to 10 years, including a 6-month moratorium
• Promoter's contribution of 10% of unit cost is required
• Applications accepted on a rolling basis, with no fixed deadline

The scheme is reserved for a defined beneficiary group rather than the general public. You can apply if you are a Safai Karamcharis, a scavenger, or a dependent of one.

That is the eligibility test named in the scheme's published criteria. There is no separate stage requirement, sector restriction or state-wise cap listed — the focus is on the applicant's background, not on how far along a business already is.

The scheme does not list DPIIT recognition or MSME registration as a condition of applying. Because proposals are routed through State Channelizing Agencies, Regional Rural Banks or nationalised banks, it is worth confirming the current document checklist with the office or branch handling your file.

Green Business Scheme: Up to ₹27 Lakh Loan for Green Businesses is open to startups at any stage. It is open to startups registered anywhere in India.

Green Business Scheme: Up to ₹27 Lakh Loan for Green Businesses accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

Funding is structured as a need-based loan from NSFDC that can cover up to 90% of the unit cost of your project. The ceiling moves with the size of the project:

• Unit cost up to ₹7.50 lakh — loan of up to ₹6.75 lakh.
• Unit cost between ₹7.50 lakh and ₹15.00 lakh — loan of up to ₹13.50 lakh.
• Unit cost between ₹15.00 lakh and ₹30.00 lakh — loan of up to ₹27.00 lakh.

Across the scheme, advertised amounts run from about ₹90,000 to ₹27 lakh.

Interest and repayment: beneficiaries pay 4% to 7% per annum, set by the applicable loan slab, and women beneficiaries receive an extra 1% rebate on NSFDC's share of the interest. The loan is repaid in quarterly instalments over a maximum of 10 years, a window that already includes a 6-month moratorium. A further 120-day moratorium is allowed on Special Central Assistance for fund utilisation.

Your own contribution: a promoter's contribution of 10% of the unit cost is required. Subsidies available from other government agencies, along with Special Central Assistance, are also taken into account and can bring down the loan quantum you need to take.

Green Business Scheme: Up to ₹27 Lakh Loan for Green Businesses is offered by Ministry of Social Justice and Empowerment, a government body. As a government-backed debt / loan, it is publicly funded and open to eligible startups across India.

Every application, whether filed offline or online, goes through the same assessment chain.

• Initial scrutiny is carried out by the District Offices of the State Channelizing Agencies (SCAs), Regional Rural Banks (RRBs) or nationalised banks that receive the application.
• Project appraisal follows, where these agencies examine whether the proposal is economically sound and aligned with the scheme's objectives.
• Recommendation and final approval — only viable projects, along with the agency's recommendation, are forwarded to the National Safai Karamcharis Finance and Development Corporation (NSFDC), which sanctions the loan.

Before you apply to Green Business Scheme: Up to ₹27 Lakh Loan for Green Businesses, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

Green Business Scheme: Up to ₹27 Lakh Loan for Green Businesses is best suited for startups in India seeking non-dilutive funding of ₹90,000 – ₹27L. If that describes your startup, review the eligibility criteria above before applying.