The Term Loan Scheme is a flagship credit-based initiative launched by the Ministry of Social Justice and Empowerment, implemented through the National Scheduled Castes Finance and Development Corporation (NSFDC). This scheme is designed to empower Scheduled Caste entrepreneurs by providing low-interest term loans for setting up or expanding their businesses. It facilitates financial inclusion, economic independence, and entrepreneurship development among the SC community.
Key Highlights of SC Term Loan 2025
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Scheme Name: Term Loan Scheme for SC Entrepreneurs
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Implementing Agency: NSFDC under the Ministry of Social Justice & Empowerment
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Loan Amount: Up to ₹50,00,000
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Interest Rate: Ranges from 6% to 9% based on the loan amount
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Repayment Tenure: Up to 10 years
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Moratorium: Between 6 to 12 months
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Target Group: Scheduled Caste individuals with annual income up to ₹3 lakh
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Application Mode: Offline through State Channelizing Agencies (SCAs), RRBs, PSBs, or NBFC-MFIs
Benefits of the Loan Scheme
| Loan Amount Range | Interest Rate | Funding Coverage |
|---|---|---|
| Up to ₹5 lakh | 6% | Up to 95% of the project cost |
| ₹5 lakh – ₹10 lakh | 8% | Up to 95% of the project cost |
| ₹10 lakh – ₹50 lakh | 9% | Up to 95% of the project cost |
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Financial assistance up to 95% of the project cost
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Equal support to applicants:
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50% allocation for applicants with annual income up to ₹1.5 lakh
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The remaining 50% for applicants with income above ₹1.5 lakh to ₹3 lakh
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Flexible repayment options (quarterly, half-yearly, yearly)
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Encourages SC entrepreneurship and employment generation
Eligibility Conditions
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Must be an entrepreneur from the Scheduled Caste (SC) community
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Annual family income must not exceed ₹3,00,000
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Valid caste certificate and income proof required
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The project should be viable and appraised by SCAs or partnered institutions
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Applicable for start-ups or expansion of existing businesses
Repayment & Moratorium
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Loan Repayment: Within 10 years
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Moratorium Period: 6 to 12 months, depending on the nature of the business activity
How to Apply – Offline Process
Offline Application via Channelizing Agencies (CAs)
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Download Form:
Download NSFDC Application Form (English) -
Visit Nearest Channelizing Agency:
Find your SCA here: List of Channelizing Agencies -
Submit Application:
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Fill the prescribed form with project details and documents
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Submit it to the District Office of SCAs or partnered banks/NBFCs
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Appraisal & Sanction:
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The application is scrutinized and forwarded to NSFDC by SCAs after viability assessment
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Approved proposals receive a Letter of Intent (LOI) with terms & conditions
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Fund Disbursement:
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After acceptance and fulfillment of conditions, funds are disbursed to SCAs/partner banks for onward disbursal to the beneficiary
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Necessary Documents for Application
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Aadhaar Card
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Caste Certificate (Scheduled Caste)
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Income Certificate
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Bank Account Statement
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Business Proposal/Project Report
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Any experience certificates (if applicable)
FAQs
Q: What is the moratorium period under this scheme?
A: The moratorium period ranges from 6 to 12 months, depending on the nature of the business.
Q: Who can avail of this scheme?
A: Scheduled Caste entrepreneurs with a viable business project and annual income below ₹3 lakh.
Q: What kind of assistance is provided?
A: Term loan up to 95% of the project cost, subject to limits and interest slabs.
Q: Can I apply for a loan to start a new business?
A: Yes, the scheme is meant for both startups and business expansion.
