The Green Business Scheme, launched by the National Safai Karamcharis Finance and Development Corporation (NSFDC), is a pioneering initiative aimed at promoting sustainable and eco-friendly income-generating activities. This scheme provides financial assistance in the form of loans to Safai Karamcharis, Scavengers, and their dependents for ventures that combat climate change while generating income. By supporting green initiatives such as battery electric vehicles, solar energy gadgets, poly houses, and compressed air vehicles, the scheme fosters environmental sustainability and economic empowerment.
Objective of the Green Business Loan Subsidy
The primary goal of the Green Business Scheme is to provide financial support for activities that mitigate the effects of climate change or contribute to adaptation efforts. It encourages beneficiaries to adopt environmentally friendly practices while creating sustainable livelihoods. The scheme aligns with national and global efforts to reduce greenhouse gas emissions and promote renewable energy solutions.
Key Benefits of the Scheme
- Loan Amount:
- Up to 90% of the unit cost, with a maximum loan limit of ₹27 lakh for projects costing up to ₹30 lakh.
- The loan amount is reduced by any subsidies available from government agencies or other schemes.
- Interest Rates:
- For projects up to ₹7.50 lakh: 4% per annum (beneficiary share).
- For projects above ₹7.50 lakh and up to ₹15 lakh: 6% per annum (beneficiary share).
- For projects above ₹15 lakh and up to ₹30 lakh: 7% per annum (beneficiary share).
- A 1% rebate on the beneficiary’s interest rate is available for female applicants.
- Repayment Tenure:
- Loans are repayable in quarterly installments within a maximum period of 10 years, including a moratorium period of 6 months.
- Subsidy Support:
- The scheme offers subsidies under Special Central Assistance (SCA) up to ₹10,000 or 50% of the unit cost, whichever is less.
Indicative Activities Covered
The scheme supports a variety of income-generating activities that align with green business objectives, including;
- Battery Electric Vehicles (E-rickshaws): Promoting clean transportation.
- Compressed Air Vehicles: Encouraging alternative fuel technologies.
- Solar Energy Gadgets: Supporting renewable energy adoption.
- Poly Houses: Facilitating sustainable agriculture and horticulture.
These activities not only generate income but also contribute to reducing the carbon footprint and promoting sustainable development.
Eligibility Criteria
To qualify for the Green Business Scheme, applicants must meet the following conditions;
- Category: Safai Karamcharis, Scavengers, or their dependents.
- Project Viability: The proposed project must be appraised and deemed viable by State Channelizing Agencies (SCAs), Regional Rural Banks (RRBs), or Nationalized Banks.
- Loan Purpose: The loan must be utilized for approved green business activities that mitigate climate change or promote adaptation.
How to Apply – Online/ Offline Process
Applications can be submitted either online or offline through authorized channels. Below are the steps for both processes;
1st) Offline Application Process:
- Submit Application: Visit the nearest District Office of State Channelizing Agencies (SCAs), Branches of Regional Rural Banks (RRBs), or Nationalized Banks.
- Scrutiny and Appraisal: The District Office/Branch will scrutinize the application and assess the viability of the proposed project.
- Forward to NSFDC: Viable projects are forwarded to the NSFDC Head Office along with recommendations.
2nd) Online Application Process:
- Visit the Official Website: Access the official NSFDC website or the designated online portal.
- Fill Application Form: Complete all mandatory fields and upload required documents.
- Submit Application: Submit the form and track the status through the portal.
Necessary Documents for Application
To ensure a smooth application process, prepare the following documents;
- Aadhaar Card.
- Driving License (if applicable).
- Bank account details.
- Caste Certificate.
- Income Certificate.
- Domicile Certificate.
- Any other documents specified by the authorities.
Frequently Asked Questions (FAQs)
Q1. What is the interest rate offered by the scheme?
A1. The interest rate varies based on the loan amount:
- Up to ₹7.50 lakh: 4% per annum.
- ₹7.50 lakh to ₹15 lakh: 6% per annum.
- ₹15 lakh to ₹30 lakh: 7% per annum.
- Female beneficiaries receive a 1% rebate on the interest rate.
Q2. What is the loan amount offered under the scheme?
A2. The loan covers 90% of the unit cost, with a maximum limit of ₹27 lakh for projects costing up to ₹30 lakh.
Q3. What is the repayment tenure of the loan amount?
A3. The loan is repayable in quarterly installments within a maximum period of 10 years , including a moratorium period of 6 months .
Q4. What are the activities for which a loan under the scheme is provided?
A4. Loans are provided for activities such as battery electric vehicles, compressed air vehicles, solar energy gadgets, poly houses, and other green initiatives.
Q5. What is the purpose of availing the loan amount?
A5. The loan must be used for income-generating activities that mitigate climate change or promote adaptation efforts.
Why Choose This Scheme?
The Green Business Scheme is a game-changer for Safai Karamcharis, Scavengers, and their dependents seeking financial support for eco-friendly ventures. By offering affordable loans, attractive subsidies, and flexible repayment terms, the scheme empowers beneficiaries to contribute to environmental sustainability while building sustainable livelihoods.
This loan scheme represents a significant step toward fostering inclusive growth and environmental sustainability. By providing financial assistance for green business initiatives, the scheme enables Safai Karamcharis and Scavengers to overcome financial barriers and embrace opportunities in renewable energy, sustainable agriculture, and clean transportation.
If you’re eligible and looking to start or expand a green business, don’t miss out on this opportunity. Visit the official NSFDC website or your nearest authorized office today and take the first step toward a greener future! For further details, refer to the official guidelines or contact the National Safai Karamcharis Finance and Development Corporation (NSFDC).
