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

The loan can cover as much as 95% of a project that costs up to ₹50,00,000, which works out to a maximum of ₹47.5 lakh per beneficiary. What you actually receive depends on how your project is costed and how the channelising agency appraises it.

You need to be an entrepreneur from the Scheduled Caste community with an annual family income of up to ₹3.00 lakh, and you must have a project proposal for an income-generating activity that a channelising agency finds viable. The application also has to be routed through a State Channelising Agency, Regional Rural Bank, Public Sector Bank or another channelising agency associated with NSFDC.

No. The scheme is rolling and always open, so applications can be submitted at any point in the year rather than against a fixed deadline.

No. This is a term loan, so it is borrowed money that you repay with interest on a schedule set by your channelising agency. NSFDC does not take a stake in your venture.

Interest is slab-based: 6% a year for loans up to ₹5 lakh, 8% a year for loans between ₹5 lakh and ₹10 lakh, and 9% a year for loans between ₹10 lakh and ₹50 lakh.

Your promoter contribution is 2% of the project cost for projects up to ₹5 lakh, 3% for projects between ₹5 lakh and ₹10 lakh, and 5% for projects above ₹10 lakh. The rest of the cost, up to 95%, can be financed by the loan.

Yes, if you live below the poverty line. Beneficiaries in that category may receive a subsidy of ₹10,000 or 50% of the unit cost, whichever is lower.

Start by contacting the channelising agency nearest to you — a State Channelising Agency, Regional Rural Bank, Public Sector Bank or an NBFC-MFI that has an agreement with NSFDC. Loan applications are normally handed in at the district offices of the SCAs. The list of channel partners is available on the NSFDC website at https://nsfdc.nic.in/.

The district office scrutinises it, and the SCA appraises the viability of the proposal and recommends it to NSFDC if it holds up. NSFDC's Project and Banking Desk then prepares an appraisal report for the Project Clearance Committee. If the committee concurs, a Letter of Intent with the terms and conditions is issued to the SCA, RRB or bank for acceptance, and funds are released once the prudential norms are met.

If your bank is a Regional Rural Bank or Public Sector Bank that works with NSFDC, or an NBFC-MFI that has an agreement with the corporation, you can apply through it instead of an SCA. The proposal still goes through the same appraisal and sanction route.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for NSFDC SC Term Loan Scheme — Up to ₹47.5L, Rolling Applications, though having it can strengthen your application and unlock other benefits.

NSFDC SC Term Loan Scheme — Up to ₹47.5L, Rolling Applications is offered by Ministry of Social Justice and Empowerment, a government body. It is provided as non-dilutive funding.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.