The “Loan Scheme for Pay and Use Community Toilets” is a financial support initiative under the Ministry of Social Justice and Empowerment, aimed at Safai Karamcharis, Manual Scavengers, and their dependents. This scheme provides term loans up to ₹25 lakhs at a subsidized interest rate to set up and operate 10-seater pay-and-use toilet units across the country.

This initiative is managed by the National Safai Karamcharis Finance & Development Corporation (NSKFDC) and implemented through State Channelizing Agencies (SCAs), Regional Rural Banks (RRBs), and Public Sector Banks (PSBs).

Summary of Loan-Based Schemes For Safai Karamchari

• Name of Scheme: Pay and Use Community Toilets Loan Scheme

• Launched By: Ministry of Social Justice and Empowerment, Govt of India

• Nodal Agency: NSKFDC (National Safai Karamcharis Finance & Development Corporation)

• Loan Amount: Up to ₹25,00,000

• Interest Rate: 4% per annum

• Interest Rebate:

  • 1% for Women Beneficiaries

  • 0.5% for Timely Repayment

• Repayment Period: 10 years

• Moratorium Period: 6 months (post-implementation)

• Unit Size: Loan applicable for a 10-seater toilet facility

• Mode of Application: Online and Offline

Key Benefits

• Affordable Capital: Access up to ₹25 lakhs for sanitation-related entrepreneurship

• Low Interest Rate: Only 4% per annum

• Special Rebates: Additional benefits for women applicants and those ensuring timely repayment

• Long Repayment Tenure: 10 years to ease financial burden

• Supports Livelihood: Enables creation of income-generating units for the sanitation workforce

Eligibility Criteria

The following individuals/entities are eligible;

• Safai Karamcharis (including waste pickers)

• Identified Manual Scavengers and their dependents

• Registered cooperative societies of the target group

• Legally constituted associations or firms promoted by the target group

• Persons with a certificate of occupation issued by:

  • Local Revenue Officer / Municipal Officer / Cantonment Executive Officer

  • Head of Government Departments (e.g., Education, Health, Animal Husbandry)

  • Elected Municipal Members / Gram Panchayat Pradhan / Regional Managers of RRBs or PSBs

• Manual Scavengers listed under the MS Act, 2013, survey do not require certificates (if listed in the final list)

Note: Occupation certificates can also be issued by Mukhia, Sarpanch, or equivalent authorities in rural areas.

Exclusions

• Domestic Workers are not eligible under this scheme.

How to Apply – Online & Offline Steps

1. Application Submission: Applicants can submit applications to the district offices of SCAs, RRBs, or Nationalised Banks.

2. Project Appraisal: The application is forwarded to the head office of the respective channelizing agency, where it is evaluated.

3. Forwarding to NSKFDC: The SCA/Bank sends the project with their recommendation to NSKFDC.

4. Final Approval: NSKFDC’s Project Appraisal Committee evaluates the proposal and places it before the Board of Directors.

5. Sanction & Disbursement:

   • On approval, a sanction letter is issued

   • After document verification, funds are released to the concerned bank/SCA

   • The loan is credited to the beneficiary’s account or utilized directly for project execution

Note: Loans are disbursed following NSKFDC’s Lending Policies & Guidelines (LPG).

No documents are explicitly required to apply under this scheme. However, banks or SCAs may request necessary documents during verification.

Frequently Asked Questions (FAQs)

Q: Who can apply for this scheme?
Safai Karamcharis, waste pickers, manual scavengers, and their dependents who meet the eligibility criteria.

Q: What is the maximum loan amount available?
Up to ₹25,00,000 for a 10-seater toilet unit.

Q: What is the interest rate under this scheme?
4% annually, with 1% rebate for women and 0.5% rebate for timely repayment.

Q: What is the loan repayment period?
10 years, including 6-month moratoriums after a 6-month implementation period.

Q: How is the loan disbursed?
Funds are released to SCAs/RRBs/PSBs, which then transfer the amount to the beneficiaries or project accounts.

Q: Are domestic workers eligible?
No, domestic workers are excluded from the scheme.

Q: What is the mode of application?
Applicants can apply through offline or online channels by visiting the concerned district SCA or bank branch.

Sources and References

• NSKFDC Official Website

• Scheme Guidelines – Ministry of Social Justice & Empowerment

• MS Survey List – Manual Scavenger Final List