Bank Loan Processing Reimbursement Scheme
Reimbursement of 80% of bank loan processing charges, up to ₹1,00,000, for Micro and Small Enterprises (MSEs) owned by SC/ST entrepreneurs.
- Funding amount
- ₹1L (subsidy)
- Funding type
- Subsidy
- Provider
- National SC-ST Hub (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Bank Loan Processing Reimbursement Scheme, offered by the National SC-ST Hub, is designed to ease the financial load on SC/ST-owned Micro and Small Enterprises (MSEs) when they seek business loans. The scheme reimburses 80% of the bank loan processing charges, up to a maximum of ₹1,00,000 (excluding GST and taxes), whichever is lower. This initiative aims to encourage entrepreneurship among SC/ST communities by reducing the upfront costs of loan processing.
To claim the reimbursement, applicants must submit several documents, including a self-certified copy of Udyam Registration and GST (if applicable), PAN card, caste certificate of the proprietor or all partners/directors, shareholding details showing SC/ST ownership above 51%, a bank-attested debit statement or receipt for the processing fee, proof of loan disbursement, a bank-attested copy of the loan sanction letter, and a cancelled cheque of the enterprise's current account.
Highlights
- Reimburses 80% of bank loan processing charges, up to ₹1,00,000.
- Open to Micro and Small Enterprises (MSEs) with Udyam Registration.
- Requires majority ownership (>51%) by SC/ST entrepreneurs.
- Rolling application deadline – apply anytime.
- Covers processing fees for business loans already availed.
Who can apply
This scheme is open to Micro and Small Enterprises (MSEs) that have obtained Udyam Registration. The enterprise must be majority-owned (more than 51% shareholding) by individuals belonging to Scheduled Caste (SC) or Scheduled Tribe (ST) communities. Applicants must have already availed a business loan and paid the associated processing fees to be eligible for reimbursement.
Bank Loan Processing Reimbursement Scheme is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
Bank Loan Processing 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.
What the funding covers
The scheme provides a reimbursement of 80% of the bank loan processing charges paid by the enterprise, up to a maximum of ₹1,00,000. The amount is calculated as the lesser of 80% of the processing fee or ₹1,00,000, and it excludes GST and other taxes. The benefit is provided in cash, directly reducing the cost of obtaining a business loan.
About the provider
Bank Loan Processing 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.
Documents you’ll need
Before you apply to Bank Loan Processing 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.
Who this is best for
Bank Loan Processing 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.
Frequently asked questions
How much funding can I get from this scheme?
You can get a reimbursement of 80% of the bank loan processing charges you paid, up to a maximum of ₹1,00,000. The actual amount is the lesser of 80% of the fee or ₹1,00,000, excluding GST and taxes.
What is the application deadline?
The scheme has a rolling deadline, meaning it is always open. You can apply at any time.
Who is eligible to apply?
Micro and Small Enterprises (MSEs) that have Udyam Registration and are majority-owned (more than 51% shareholding) by Scheduled Caste (SC) or Scheduled Tribe (ST) entrepreneurs are eligible. You must have already taken a business loan and paid the processing fee.
Does the scheme take equity or require repayment?
No, this is a reimbursement scheme. It does not take equity or require repayment. The benefit is provided as a cash subsidy.
What documents are needed to apply?
You need to submit self-certified copies of Udyam Registration, GST (if applicable), PAN card, caste certificate of proprietor/all partners/directors, shareholding details showing SC/ST ownership above 51%, a bank-attested debit statement or receipt for the processing fee, proof of loan disbursement, a bank-attested copy of the loan sanction letter, and a cancelled cheque of the enterprise's current account.
How do I apply for this scheme?
You can apply online through the National SC-ST Hub website at https://www.scsthub.in/nssh-schemes/.
Is DPIIT or MSME registration required?
Yes, you need Udyam Registration (MSME registration) to apply. DPIIT registration is not mentioned as a requirement.
Can startups apply, or is it only for established businesses?
The scheme is open to Micro and Small Enterprises (MSEs) with Udyam Registration. There is no specific stage restriction, so startups that qualify as MSEs can apply if they meet the ownership criteria.
Who offers Bank Loan Processing Reimbursement Scheme?
Bank Loan Processing Reimbursement Scheme is offered by National SC-ST Hub, a government body. It is provided as non-dilutive funding.
More funding from National SC-ST Hub
National SC-ST Hub runs 4 other programs listed on startupfunds — compare them before you decide where to apply.
Alternatives to Bank Loan Processing Reimbursement Scheme
Not sure Bank Loan Processing Reimbursement Scheme is the right fit, or already applied? These are other subsidies open to Indian startups that founders shortlist alongside it.
Questions from founders
Ask anything about eligibility, documents or the process — answered by the community.
No questions yet — be the first to ask.