NSFDC SC Term Loan Scheme — Up to ₹47.5L, Rolling Applications

The Term Loan (TL) window of the Ministry of Social Justice and Empowerment's credit-based schemes for Scheduled Caste entrepreneurs is implemented by the National Scheduled Castes Finance and Development Corporation (NSFDC). It is a debt product, not a grant: an SC founder with a workable business idea borrows part of the project cost, puts in a small promoter contribution of their own, and repays the loan on a schedule fixed by the agency that disburses it.

The money is meant for ventures that generate income. A project can be costed at up to ₹50 lakh, and NSFDC's share can go as high as 95% of that cost — which is where the headline figure of up to ₹47.5 lakh per beneficiary comes from. Interest is charged on a slab basis, starting at 6% a year for the smallest loans and rising to 9% a year for the largest.

Funding does not flow directly from NSFDC to the founder. Applications are made through a channelising partner — a State Channelising Agency (SCA), a Regional Rural Bank, a Public Sector Bank, or an NBFC-MFI that has an agreement with NSFDC — and the partner appraises the proposal before it is forwarded for sanction. There is no closing date: the scheme runs on a rolling, always-open basis, so applications can be made at any time of the year.

• Term loan of up to ₹47.5 lakh for Scheduled Caste entrepreneurs
• Covers as much as 95% of a project costed up to ₹50 lakh
• Interest from 6% to 9% a year, charged in slabs
• BPL beneficiaries may also get a subsidy of ₹10,000 or 50% of unit cost
• Rolling scheme — no deadline, applications open through the year
• Applied for via SCAs, Regional Rural Banks, Public Sector Banks and NBFC-MFIs

Eligibility rests on three things: who you are, how much your family earns, and whether the project stands up to scrutiny.

• Community: the applicant must be an entrepreneur from the Scheduled Caste category.
• Income: annual family income must be up to ₹3.00 lakh.
• Project: you need a concrete proposal for an income-generating activity that a channelising agency appraises as viable.
• Route: the application has to go through a State Channelising Agency (SCA), Regional Rural Bank, Public Sector Bank, or another channelising agency tied up with NSFDC.
• Appraisal: the proposal must clear the concerned agency's viability check before it can be recommended for a loan.

NSFDC SC Term Loan Scheme — Up to ₹47.5L, Rolling Applications is open to startups at any stage. It is open to startups registered anywhere in India.

NSFDC SC Term Loan Scheme — Up to ₹47.5L, Rolling Applications 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.

• Term loan: up to 95% of the project cost, with the project itself capped at ₹50,00,000. The largest loan a beneficiary can draw is therefore ₹47.5 lakh.
• Promoter contribution: the beneficiary funds the rest — 2% for projects up to ₹5 lakh, 3% for projects between ₹5 lakh and ₹10 lakh, and 5% for projects above ₹10 lakh.
• Subsidy for BPL beneficiaries: those living below the poverty line may receive a subsidy of ₹10,000 or 50% of the unit cost, whichever is lower.
• Interest slabs: 6% a year on loans up to ₹5 lakh, 8% a year on loans between ₹5 lakh and ₹10 lakh, and 9% a year on loans between ₹10 lakh and ₹50 lakh.

NSFDC SC Term Loan Scheme — Up to ₹47.5L, Rolling Applications 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 proposal passes through two levels of appraisal before money moves.

• Scrutiny at district level: applications submitted to the district offices of State Channelising Agencies are examined first.
• Viability appraisal by the SCA: the agency's head office assesses whether the project is viable and, if it is, forwards it with a recommendation to NSFDC. Applications that come in through Regional Rural Banks, Public Sector Banks or NBFC-MFIs go through a comparable appraisal.
• Appraisal at NSFDC: the corporation's Project and Banking Desk examines the proposal and prepares an appraisal report.
• Project Clearance Committee: that report goes to the PCC, which gives its concurrence.
• Sanction and Letter of Intent: proposals found in order are recommended for sanction, and an LOI setting out the terms and conditions is issued to the SCA, RRB or bank.
• Disbursement: once the LOI is accepted and prudential norms are met, NSFDC releases funds to the agency or bank, which passes them on to the beneficiary.
• Repayment: the borrower repays the loan on the schedule stipulated by the channelising agency.

Before you apply to NSFDC SC Term Loan Scheme — Up to ₹47.5L, Rolling Applications, 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.

NSFDC SC Term Loan Scheme — Up to ₹47.5L, Rolling Applications is best suited for startups in India seeking non-dilutive funding of ₹47.5L. If that describes your startup, review the eligibility criteria above before applying.