Bank Guarantee Charges Reimbursement Scheme

The Bank Guarantee Charges Reimbursement Scheme, run by the National SC-ST Hub, helps SC/ST-owned micro and small enterprises (MSEs) reduce the cost of participating in government tenders. It refunds 80% of the Performance Bank Guarantee (PBG) charges paid to banks, up to a maximum of ₹1,00,000 (excluding GST and other taxes). This support applies to tenders issued by Central or State Governments and Public Sector Enterprises (PSEs).

To claim reimbursement, applicants must submit several documents: self-certified copies of Udyam Registration and GST (if applicable), PAN card (proprietor's PAN if proprietorship), caste certificates of all promoters, shareholding details for partnership/private limited/LLP firms (with SC/ST shareholding above 51%), a bank-attested debit statement showing PBG charges, a copy of the PBG issued by the bank, a cancelled cheque of the enterprise's current account, proof of any prior reimbursement from NSSHO/NSIC under the same scheme in the same financial year, and the supply/purchase/work order from the government entity that required the PBG.

• Reimburses 80% of Performance Bank Guarantee charges, up to ₹1,00,000.
• Open to SC/ST-owned Micro and Small Enterprises (MSEs) with at least 51% SC/ST shareholding.
• Covers tenders from Central/State Governments and Public Sector Enterprises.
• Rolling application – no deadline; apply anytime.
• Requires Udyam Registration and submission of detailed documentation including caste certificates and bank statements.

The scheme is open to Micro and Small Enterprises (MSEs) where at least 51% of the shareholding is held by entrepreneurs belonging to Scheduled Caste (SC) or Scheduled Tribe (ST) communities. The enterprise must have a valid Udyam Registration and must have incurred Performance Bank Guarantee charges for a tender from a Central/State Government or a Public Sector Enterprise. The reimbursement is for charges paid during the current financial year, and applicants must not have already received reimbursement from NSSHO/NSIC for the same charges.

Bank Guarantee Charges Reimbursement Scheme is open to startups at any stage. It is open to startups registered anywhere in India.

Bank Guarantee Charges Reimbursement Scheme 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 provides a reimbursement of 80% of the Performance Bank Guarantee charges paid, up to a maximum of ₹1,00,000 (excluding GST and other applicable taxes). This is a cash subsidy that directly reduces the cost of bidding for government contracts.

Bank Guarantee Charges Reimbursement Scheme 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.

Before you apply to Bank Guarantee Charges Reimbursement Scheme, 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.

Bank Guarantee Charges Reimbursement Scheme 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.