Micro Credit Finance: Up to ₹50,000 Loan at 5% for Charmakars
An NSFDC-funded Maharashtra scheme offering Charmakar community entrepreneurs a ₹25,000–₹50,000 loan at 5% interest plus a ₹10,000 subsidy for footwear and leather production. Applications run year-round through LIDCOM district offices.
- Funding amount
- ₹25,000 – ₹50,000 (debt / loan)
- Funding type
- Debt / Loan
- Provider
- National Scheduled Castes Finance and Development Corporation (NSFDC) (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
Micro Credit Finance is a debt-based funding route for leather-working families in Maharashtra, delivered through the District Offices of the Leather Industries Development Corporation of Maharashtra (LIDCOM). The money is funded by the National Scheduled Castes Finance and Development Corporation (NSFDC) and the programme is implemented by the state's Department of Social Justice & Special Assistance.
The scheme is aimed squarely at the Charmakar community — Dhor, Chambhar, Holar, Mochi and related sub-castes — and especially at households living below the poverty line. Its purpose is practical: help these families set up or grow small units that make footwear and other leather goods, so they can earn steadily and improve their standing socially as well as economically.
Because the support is a repayable loan rather than a grant or an equity investment, the entrepreneur keeps full ownership of the business. A subsidy component brings the cost down further. There is no application window to chase — the scheme stays open — and the entry point is the LIDCOM District Office rather than an online portal.
Highlights
- Financial assistance of ₹25,000 to ₹50,000 for eligible applicants
- Repayable loan priced at a low 5% annual interest rate
- Additional ₹10,000 subsidy component
- Open to the Charmakar community (Dhor, Chambhar, Holar, Mochi) in Maharashtra
- Built around footwear and leather article production
- Rolling deadline — applications can be made at any time of year
Who can apply
Micro Credit Finance is designed for individuals rather than companies, and the eligibility test revolves around community, age, location, income status and hands-on knowledge of the trade.
- Community: the applicant must belong to the Charmakar community, which covers Dhor, Chambhar, Holar, Mochi and similar sub-castes.
- Age: between 18 and 50 years.
- Residency: must be a permanent resident of Maharashtra.
- Income status: must fall under the Below Poverty Line (BPL) category.
- Documents: an Income Certificate and a Caste Certificate issued by an authorised government officer are required.
- Business knowledge: the applicant must know the trade for which the loan is being sought.
The scheme applies two income tests. For the 50% Subsidy Scheme and for Margin Money, annual income must sit below the poverty line. For the NSFDC Scheme, the annual income ceiling is ₹98,000 in rural areas and ₹1,20,000 in urban areas.
DPIIT recognition and MSME registration are not listed among the eligibility conditions.
Micro Credit Finance: Up to ₹50,000 Loan at 5% for Charmakars is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
Micro Credit Finance: Up to ₹50,000 Loan at 5% for Charmakars 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.
What the funding covers
The support blends repayable credit with a one-time subsidy, and both are sized for micro-enterprises rather than large projects.
- Loan range: ₹25,000 to ₹50,000.
- Interest rate: 5% per year, kept deliberately low so instalments stay affordable.
- Subsidy: ₹10,000, which eases the overall financial load.
- Activity covered: income-generating work in footwear manufacturing and leather article production.
Since the assistance is structured as a loan, it is non-dilutive — no share of the business changes hands. The ₹10,000 subsidy works alongside the credit to make the venture more viable for a household that is below the poverty line.
The stated goal is to help beneficiaries produce a range of footwear and leather goods that can be supplied against government contracts as well as sold in the open market, turning the loan into a lasting livelihood rather than one-off support.
About the provider
Micro Credit Finance: Up to ₹50,000 Loan at 5% for Charmakars is offered by National Scheduled Castes Finance and Development Corporation (NSFDC), a government body. As a government-backed debt / loan, it is publicly funded and open to eligible startups across India.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
Applications are submitted in hard copy at the LIDCOM District Office and are assessed at that office.
Authorities review the completed form together with the attached documents to confirm that every eligibility condition is satisfied. The checks cover community affiliation, age, Maharashtra residency, BPL status, the applicable income limits and the applicant's familiarity with the proposed business.
Beyond this verification of the form and supporting papers, the published scheme details do not describe any evaluation committee, scoring method or interview round. In practice, that makes the accuracy and completeness of the paperwork the decisive factor — and makes the acknowledgement receipt, with its submission details, worth retaining.
Documents you’ll need
Before you apply to Micro Credit Finance: Up to ₹50,000 Loan at 5% for Charmakars, 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.
Who this is best for
Micro Credit Finance: Up to ₹50,000 Loan at 5% for Charmakars is best suited for startups in India seeking non-dilutive funding of ₹25,000 – ₹50,000. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
How much funding does Micro Credit Finance offer?
Eligible beneficiaries can receive between ₹25,000 and ₹50,000, structured as a loan. On top of that, the scheme carries a ₹10,000 subsidy component, which brings down the overall burden on the borrower.
Who can apply for this scheme?
It is open to individuals from the Charmakar community, including Dhor, Chambhar, Holar, Mochi and similar sub-castes. You must be a permanent resident of Maharashtra, aged between 18 and 50 years, fall under the Below Poverty Line category, hold an Income Certificate and a Caste Certificate from an authorised government officer, and have working knowledge of the business you are applying for.
What interest rate applies, and is there a subsidy?
The loan carries a low annual interest rate of 5%, which keeps repayment manageable. A ₹10,000 subsidy is also provided, reducing the effective financial load on the beneficiary.
Does the scheme take equity in my business?
No. This is a debt product — the money is a loan that has to be repaid at 5% annual interest, softened by a ₹10,000 subsidy. There is no equity stake, so ownership of the enterprise stays entirely with the founder.
Is there an application deadline?
No. The scheme runs on a rolling basis and stays open, so there is no fixed last date to apply. You can approach the LIDCOM District Office during office hours and submit your form; if a submission period is prescribed at any point, make sure you meet it.
Do I need DPIIT recognition or MSME registration?
Neither is listed as a requirement for this scheme. What matters instead is your community certificate, your income certificate, Maharashtra residency, BPL status and proof that you understand the trade you are proposing.
What are the income limits for eligibility?
Two tests apply. For the 50% Subsidy Scheme and for Margin Money, annual income must be below the poverty line. For the NSFDC Scheme specifically, annual income should not exceed ₹98,000 in rural areas or ₹1,20,000 in urban areas.
What kind of business is this funding meant for?
The focus is on producing footwear and various leather articles. The idea is that beneficiaries can serve government supply contracts as well as sell in the open market, creating a sustainable source of income within the community.
How do I apply for Micro Credit Finance?
The process is offline. Visit the District Office of LIDCOM during office hours and collect the prescribed application form from the concerned authority. Fill in all mandatory fields, attach a passport-sized photograph (signed across if required) and self-attested copies of the necessary documents, then submit the signed form to the authority. Ask for a receipt or acknowledgement that records the date and time of submission and, if applicable, a unique identification number.
What documents do I need to submit?
You will need the completed and signed application form, a passport-sized photograph (signed across if required), self-attested copies of your supporting papers, and an Income Certificate and Caste Certificate issued by an authorised government officer. All attachments should be self-attested, and you should retain the acknowledgement slip you receive at submission.
Who offers Micro Credit Finance: Up to ₹50,000 Loan at 5% for Charmakars?
Micro Credit Finance: Up to ₹50,000 Loan at 5% for Charmakars is offered by National Scheduled Castes Finance and Development Corporation (NSFDC), a government body. It is provided as non-dilutive funding.
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