• National Safai Karmcharis Finance and Development Corporation

    National Safai Karmcharis Finance and Development Corporation (NSKFD) offers various types of loan schemes to provide economic assistance to those who belong to socially and financially backward groups. We will have a look at the schemes offered by NSKFD.

    Term Loan (TL)

    • It is the job of the State Channelising Agencies (SCA) to extend this loan scheme to the target group.
    • The maximum loan that one can avail for each unit is Rs.15 lakh.
    • The promoter is not required to make any contribution to the project costing up to Rs.2 lakh. For projects costing above Rs.2 lakh, the minimum contribution the promoter will have to make is 5%.
    • 90% of the total unit cost can be provided as a term loan, while the remaining 10% has to be provided by SCAs in the form of loans, subsidies, and contributions made by the promoters.
    • The repayment tenure for this scheme is 5 years after moratorium period of 6 months and implementation period of 3 months from the date on which the loan was disbursed.

    Interest rate

    Loan amount from NSKFD Interest chargeable
    SCA Beneficiaries
    Up to Rs.15 lakh 3% p.a. 6% p.a.

    Micro Credit Finance (MCF)

    • Under this scheme loan is provided to target groups via State Channelising Agencies (SCA) for projects costing up to Rs.6 lakh and handled by a group consisting of 10 borrowers. Each borrower is eligible to receive Rs.60,000 as per this scheme.
    • Under this scheme there is no need of a promoter making any contribution to the project.
    • As per this scheme, 90% of the total unit cost will be provided by NSKFD while the remaining 10% will be provided by SCAs in the form of loans, subsidies, and other sources of funding.
    • The repayment tenure is 3 years after moratorium period of 6 months and implementation period of 4 months from the date on which the loan was disbursed.

    Interest rate

    Loan amount from NSKFD Interest chargeable
    SCA Beneficiaries
    Up to Rs.6 lakh for a group of 10 members and Rs.60,000 for each borrower 2% p.a. 5% p.a.

    Mahila Samridhi Yojana (MSY)

    • Under this scheme, Safai Karamcharis and their dependents can avail a loan for projects costing up to Rs.60,000 for small and petty businesses and activities generating a small form of income.
    • Under this scheme there is no requirement of a contribution made by a contributor.
    • NSKFD will provide 90% of the total unit cost while the remaining 10% will be provided by SCAs in the form of loan, subsidies, and other sources of funding.
    • The repayment tenure is 3 years after moratorium period of 6 months and implementation period of 4 months from the date on which the loan was disbursed.

    Interest rate

    Loan amount from NSKFD Interest chargeable
    SCA Beneficiaries
    Up to Rs.60,000 per beneficiary or unit 1% p.a. 4% p.a.

    Mahila Adhikarita Yojana (MAY)

    • Women who work as Safai Karmacharis and Scavengers and their daughters can avail this loan in order to fund their small and petty businesses and activities generating small form of income for them. This scheme will fund projects costing up to Rs.75,000.
    • No need of a promoter to make any form of contribution to this scheme.
    • NSKFD will fund the 90% of the total unit cost of the project, while the remaining 10% will be funded by SCAs in the form of loan, subsidies, and other form of funding.
    • The repayment tenure is 5 years after moratorium period of 6 months and implementation period of 4 months from the date on which the loan was disbursed.

    Interest rate

    Loan amount from NSKFD Interest chargeable
    SCA Beneficiaries
    Up to Rs.1 lakh per beneficiary or unit 2% p.a. 5% p.a.

    Education Loan

    • Students belonging to the Safai Karamcharis community can avail an education loan to fund their education in a field of their choice.
    • 90% of the loan will be funded by NSKFD while the remaining 10% will be borne by the student or the SCA.
    • Repayment tenure is 5% after the completion of the course with moratorium period of 6 months.

    Interest rate

    Loan amount from NSKFD Interest chargeable
    SCA Beneficiaries
    90% of the total expenses related to education 1% p.a. 4% p.a. And 0.5% rebate for women

    Swachhta Udayami Yojana

    • This loan is extended to those target groups for the construction and operation of community toilets in public private partnership (PPP) mode. The maximum loan that can be availed under this scheme is Rs.25 lakh, Rs.15 lakh for procurement and operation of sanitation related vehicles, and up to Rs.40 lakh for SHG/JRG/Cooperative.
    • A subsidy of Rs.3.25 lakh is also available under Manual Scavengers under Self Employment Scheme for Rehabilitation of Manual Scavengers (SRMS) in accordance with the "Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013.
    • Interest rate charged under this scheme is 4% p.a. with a rebate of 1% for women candidate and 0.5% in case of timely repayment of term loan.
    • Repayment tenure for this scheme is 10 years.

    Sanitary Marts Scheme

    • Under this scheme, loan is provided to the members of Safai Karamcharis community to set up Sanitary Marts so that they can sell things related to sanitation and hygiene.
    • 90% of the total loan amount up to Rs.15 lakh will be funded by NSKFD.
    • The promoter will fund the remaining 10% of the loan amount.
    • Interest rate charged under this scheme is 4% p.a. with a rebate of 1% for women candidate and 0.5% in case of timely repayment of EMIs.
    • Repayment tenure will be 10 years where the term loan will be paid on a quarterly basis.

    Green Business Scheme

    • Under this scheme loan will be provided to target groups who will engage in activities related to tackling of climate change along with the generation of income.
    • Safai Karamcharis, Scavengers, and their dependents will be eligible for this scheme.
    • The loan amount will help in developing and purchasing Battery electric vehicle(E-rickshaw), Compressed air vehicle, Solar energy gadgets, Poly houses.
    • 90% of the total loan amount up to Rs.2 lakh will be funded by NSKFD. Quantum loan shall however be reduced to the extent of amount of subsidy.

    Eligibility criteria required to be fulfilled

    Given below is the eligibility criteria that will be required to be fulfilled in order to be eligible for the loan schemes offered by NSKFD:

    • Safai Karamcharis, Scavengers, and their dependents registered under NSKFD.
    • Co-operative socities registered under NSKFD.
    • Firms and associations legally constituted by the target group and all those who can produce a certificate from a person not ranked less than Gazetted Officer/members of panchayat and municipal body/ regional managers of RRBs and Nationalised Banks, etc.
    • As per MS Act 2013, not person who is a manual scavenger is required to produce any certificate once his/her name appears in the list of Manual Scavengers prepared by State Government and Union Territories.

    Despite their being no fixed income limit, priority will be given to:

    • Scavengers and Safai Karamcharis who are below poverty line
    • Disabled people among the target group and
    • Women among the target group

    How to apply for a loan from NSKFD?

    • Loan applications are submitted by the applicants to the district offices of SCAs of NSKFD of RRBs and Nationalised Banks.
    • These applications are then sent to the head offices where the project proposal is appraised by SCA/RRBs/Nationalised Banks and the projects are sent back to NSKFD along with recommendations.
    • The Project Appraisal Committee of NSKFD then appraises the proposals and after finding them in order places it in front of their board of directors for their approval.
    • Once the board of directors approves the project, the letter of sanction is issued by SCAs/ RRBs/Nationalised Banks.
    • Once all the terms and conditions have been accepted, the necessary documents and funds are then released to the concerned beneficiaries. NSKFD released the funds with the receipt of demand being made from the SCAs/ RRBs/Nationalised Banks after taking into consideration all the parameters of release as per the Lending Policies & Guidelines (LPG) of NSKFDC

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