Loans for Scheduled Caste

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Since times immemorial, the scheduled castes have been socially and professionally disadvantaged. They did not enjoy the same privileges as the rest of the society in any walk of life. They were even referred to as the “Depressed Classes” during the British Rule. However, post Indian Independence, the country started making up for such atrocities by providing the scheduled caste and tribes (SCs/STs) with a “Reservation Status” and guaranteed political representation for them.

In a day and age where the country is striving to provide equal opportunity for all, banks and financial institutions are offering special loans for the scheduled caste so they can meet their needs and requirements like any other sect in the country.

Here are some loans available especially for the Scheduled Caste in India:

National Scheduled Caste Finance and Development Corporation

NSFDC offers a host of loans, schemes and financial aid specifically for the scheduled caste to meet any requirement such as education loans, loans for vocational training, schemes for farmers and women and green business schemes etc.

Term Loan:

• Loan for units/projects – up to Rs.30 lakhs.
• Loan Quantum – Financing up to 90% of the project cost.
• SCAs must contribute a share of their assistance according to their schemes and also provide subsidy. BPL (Below Poverty Line) beneficiaries can apply for subsidy of Rs.10,000 or 50% of the unit cost, depending on whichever is lesser.
• Interest rate – Range between 3% and 10% p.a.

Micro Credit Finance Scheme (MCF):

• Unit Cost – Maximum financing of Rs.50,000.
• Loan Quantum – Financing up to 90% of the project cost.
• Interest rate – Range between 2% and 5% p.a.
• Repayment Period – Loan to be repaid within 3 years through quarterly instalments. This includes a 90 day moratorium period.

Mahila Samriddhi Yojna (MSY):

• Unit Cost – Maximum financing of Rs.50,000.
• Loan Quantum – Financing up to 90% of the project cost.
• Interest rate – Range between 1% and 4% p.a.
• Repayment Period – Loan to be repaid within 3 years through quarterly instalments. This includes a 90 day moratorium period.

Mahila Kisan Yojna (MKY):

• Unit Cost – Maximum financing of Rs.50,000.
• Loan Quantum – Financing up to 90% of the project cost.
• Interest rate – Range between 2% and 5% p.a.
• Repayment Period – Loan to be repaid within 10 years through quarterly instalments. This includes a 90 day moratorium period.

Shilpi Samriddhi Yojna (SSY):

• Unit Cost – Maximum financing of Rs.50,000.
• Loan Quantum – Financing up to 90% of the project cost.
• Interest rate – Range between 2% and 5% p.a.
• Repayment Period – Loan to be repaid within 5 years through quarterly instalments. This includes a 90 day moratorium period.

Educational Loan Scheme:

• Pursue – Full-time technical/professional courses and covers tuition fees, books, stationary and other expenses.
• Loan amount – Up to Rs.10 lakhs for education in India and up to Rs.20 lakhs for education abroad.

Bank of Baroda - Financing Scheduled Caste/Scheduled Tribes

This loan provides financing to farmers for the purpose of rural development. Additionally, this loan can also be used to ameliorate conditions of the SCs/STs.

• You can apply for this loan to purchase tools, farm implements, pairs of bullocks, create irrigating facilities etc. on a state government allotted land.
• You can apply for this loan even if you have not been allotted land but are undertaking subsidiary occupation including poultry, fishery, bee-keeping, pig rearing etc.
• You can apply for a term loan or a working capital loan according to your requirement.
• Repayment – Includes cash credit of 12 months and instalment payments of up to 7 years.

Dr. B.R. Ambedkar Development Corporation Limited (undertaking by Government of Karnataka) – Self Employment Scheme

This scheme is meant for unemployed Scheduled Caste members to assist themselves with employment opportunities.

• For unit cost up to Rs.1 lakh, the Corporation provides a maximum subsidy of Rs.35,000 and the remaining through banks.
• For project cost of above Rs.2 lakhs, the Corporation provides a maximum subsidy of 33% of the unit OR up to Rs.1 lakh.
• Under the Dairy Scheme, per unit cost is Rs.58,500 out of which a subsidy of Rs.25,000 will be provided.

No matter what your background is, you don’t have to define your future with it. Make your own future with these specially designed loans and maximize your potential.