SC-ST Hub Bank Loan Processing Fee Reimbursement — Up to ₹1 Lakh for SC/ST MSEs

The Bank Loan Processing Fee Reimbursement Scheme is an initiative by the Ministry of Micro, Small, and Medium Enterprises (MSME), implemented under its National SC-ST Hub programme. Its core purpose is to reduce the financial burden on Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs by refunding a major part of the loan processing fees that banks and financial institutions charge when a business loan is taken. By covering both fund-based and non-fund-based loans, the scheme makes institutional credit more accessible for SC/ST-run Micro and Small Enterprises (MSEs).

This scheme supports inclusive economic growth by allowing entrepreneurs from these communities to start, expand, or operate their ventures without the extra cost of processing fees. Since the benefit is available repeatedly within a financial year (subject to the annual cap), it continues to support businesses as they grow and take new loans. The goal is to promote self-employment and wealth creation within SC/ST communities, aligning with the broader national objectives of socio-economic upliftment and entrepreneurial empowerment.

• Up to ₹1 lakh reimbursement for loan processing fees
• Covers 80% of processing fees
• Open to SC/ST Micro & Small Enterprises
• Can be availed multiple times annually
• Online application process

To be eligible, the applicant must belong to the Scheduled Caste (SC) or Scheduled Tribe (ST) category and own or represent a Micro or Small Enterprise (MSE). For partnership firms, Private Limited companies, or LLPs, the SC/ST entrepreneur must hold more than 51% shareholding. The MSE must have availed a business loan from any Scheduled Commercial Bank, Non-Banking Finance Company (NBFC), or State Finance Corporation. Benefits are available only after the loan has been disbursed in a financial year. The scheme cannot be clubbed with any other program that offers reimbursement for the same bank loan processing fees.

SC-ST Hub Bank Loan Processing Fee Reimbursement — Up to ₹1 Lakh for SC/ST MSEs is open to startups at any stage. It is open to startups registered anywhere in India.

SC-ST Hub Bank Loan Processing Fee Reimbursement — Up to ₹1 Lakh for SC/ST MSEs 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.

The scheme offers reimbursement of up to 80% of the bank loan processing fee, or ₹1,00,000 (whichever is lower), excluding GST and other taxes. This benefit can be availed multiple times within a financial year, but the total financial assistance is capped at ₹1,00,000 per year. This significantly reduces the initial cost of accessing credit, making it easier for SC/ST MSEs to secure necessary business funding. The scheme is open throughout the year, ensuring sustained support for entrepreneurs as they scale or take new loans.

SC-ST Hub Bank Loan Processing Fee Reimbursement — Up to ₹1 Lakh for SC/ST MSEs is offered by National SC-ST Hub, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.

Since this is a reimbursement scheme, there is no competitive selection. Eligible SC/ST MSEs must first avail a business loan from a recognized financial institution and pay the processing fee. After the loan is disbursed, they can apply for reimbursement. The application is then reviewed to ensure the claimant meets the eligibility criteria and that all required documents are complete. Once verified, the reimbursement is processed.

Before you apply to SC-ST Hub Bank Loan Processing Fee Reimbursement — Up to ₹1 Lakh for SC/ST MSEs, 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.

SC-ST Hub Bank Loan Processing Fee Reimbursement — Up to ₹1 Lakh for SC/ST MSEs is best suited for startups in India seeking non-dilutive funding of ₹1L. If that describes your startup, review the eligibility criteria above before applying.