Micro Credit Finance: Up to ₹50,000 Loan at 5% for Charmakars — Frequently Asked Questions

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.