Green Business Scheme: Up to ₹27 Lakh Loan for Green Businesses — Frequently Asked Questions

It is a loan scheme from the Ministry of Social Justice and Empowerment, implemented by the National Safai Karamcharis Finance and Development Corporation (NSFDC / NSKFDC). Its purpose is to give Safai Karamcharis, scavengers and their dependents access to capital for income-generating ventures that also reduce the greenhouse effect or sit within climate adaptation work.

Eligibility is built around the beneficiary group. You can apply if you are a Safai Karamcharis, a scavenger, or a dependent of one. The published criteria do not add a sector restriction, a state-wise limit or a minimum business stage.

The loan depends on the unit cost of your project, and NSFDC can finance up to 90% of it. For a unit cost up to ₹7.50 lakh, the maximum is ₹6.75 lakh. For unit costs between ₹7.50 lakh and ₹15.00 lakh, it is ₹13.50 lakh. For unit costs between ₹15.00 lakh and ₹30.00 lakh, the loan can go up to ₹27.00 lakh. Overall, the advertised range runs from ₹90,000 to ₹27 lakh.

Beneficiaries pay between 4% and 7% per annum, with the exact rate decided by the loan slab that applies to them. Women beneficiaries get an additional 1% rebate on NSFDC's share of the interest.

Yes. A promoter's contribution of 10% of the unit cost is required. Subsidies from other government agencies and Special Central Assistance are also considered, and because they reduce the amount you need to borrow, they can lower the overall loan quantum.

Repayment is made in quarterly instalments over a maximum period of 10 years, and that period includes a moratorium of 6 months. On top of this, a 120-day moratorium is allowed for Special Central Assistance fund utilisation.

No. This is a debt facility, so the support comes as a loan you repay rather than as a shareholding. No stake or ownership in your venture is diluted.

The scheme backs ventures that mitigate the greenhouse effect or fall under adaptation initiatives. Indicative examples include buying battery electric vehicles such as e-rickshaws, compressed air vehicles, solar energy gadgets, setting up poly houses for sustainable agriculture, and other green business models along the same lines.

No. The scheme operates on a rolling, always-open basis, so there is no last date to beat. You can submit an application whenever your project is ready.

Those registrations are not listed among the scheme's eligibility conditions, which centre on the beneficiary group instead. Since applications pass through SCAs, Regional Rural Banks or nationalised banks, it is best to confirm the current document requirements with the office or branch that receives your file.

You can apply online by going to nskfdc.nic.in, opening the 'How to Apply' section and filling in the Loan Application Form. Alternatively, submit the application offline to the District Office of a State Channelizing Agency of NSKFDC, or to a branch of a Regional Rural Bank or a nationalised bank. From there, the receiving office scrutinises the application, appraises whether the proposal is viable and in line with the scheme's objectives, and forwards only viable projects with its recommendation to NSFDC for final approval and sanction.