The Term Loan Scheme is a key initiative by the Department of Social Justice & Special Assistance, Government of Maharashtra. It is funded by the National Scheduled Castes Finance and Development Corporation (NSFDC) to support the socio-economic empowerment of the Charmakar community (Dhor, Chambhar, Holar, Mochi, etc.).

This scheme is designed to help eligible beneficiaries start or expand income-generating activities—especially in leather-related industries like footwear production and leather goods manufacturing—through financial aid, subsidies, and training support.

Benefits of the Term Loan Scheme

• Loan Amount: ₹1,00,000 to ₹2,50,000 (for general term loans; different limits may apply for vehicle loans)

• Project Funding Structure:

  • NSFDC Contribution: 75% of total project cost

  • Seed Capital (LIDCOM): 20%

  • Subsidy: ₹10,000 per beneficiary

  • Beneficiary Contribution: 5% of the project cost

• Interest Rates:

  • Loans up to ₹5,00,000:

    • NSFDC: 7% per annum

    • Corporation: 4% per annum

  • Loans above ₹5,00,000:

    • NSFDC: 8% per annum

    • Corporation: 4% per annum

• Repayment Period: Monthly EMIs for up to 60 months (5 years)

• No hidden charges or collateral required

Eligibility Criteria

Applicants must meet the following conditions:

• Be a permanent resident of Maharashtra

• Belong to the Charmakar community

• Be between 18 to 50 years of age

• Must have basic knowledge or experience in the business for which the loan is applied

• Income requirements:

  • Rural Areas: Annual income below ₹98,000

  • Urban Areas: Annual income below ₹1,20,000

• Must provide valid:

  • Caste Certificate

  • Income Certificate issued by a competent authority

• Must fall Below the Poverty Line (BPL) for specific subsidy/margin money benefits

Application Process

Offline Mode Only

Follow the steps below:

1. Visit the District Office of LIDCOM (Leather Industries Development Corporation of Maharashtra) during working hours.

2. Collect the Application Form in the prescribed format from the concerned official.

3. Fill out the Form: Enter accurate details, paste a passport-size photo, and attach all required documents (self-attested).

4. Submit the Application along with the necessary documents to the concerned authority.

5. Collect Acknowledgement: Ensure it includes the submission date, time, and any reference/receipt number.

Note: Submit your application within the notified deadline, if applicable.

Documents Required

• Aadhaar Card

• Caste Certificate (Charmakar community)

• Annual Income Certificate

• Ration Card

• Passport-size Photos (applicant and spouse)

• Bank Passbook (copy)

• Detailed Project Report

• Loan Application Documents

Frequently Asked Questions (FAQs)

• Q: What is the Term Loan Scheme?
  A: A financial assistance scheme for members of the Charmakar community in Maharashtra to promote self-employment and entrepreneurship.

• Q: Who can apply for the scheme?
  A: Residents of Maharashtra from the Charmakar community, aged 18–50, with income below specified limits.

• Q: What is the maximum loan amount under the scheme?
  A: Up to ₹2,50,000 (varies based on the project type).

• Q: What is the interest rate charged?
  A: 7% per annum for loans up to ₹5,00,000, and 8% for loans above that, with an additional 4% by the corporation.

• Q: Is there a subsidy offered under this scheme?
  A: Yes, each beneficiary receives a ₹10,000 subsidy.

• Q: What is the repayment term?
  A: The loan must be repaid in monthly installments over a maximum period of 60 months.

• Q: Do I need to reside in Maharashtra to apply?
  A: Yes, only permanent residents of Maharashtra are eligible.

Sources and References

• Maharashtra Social Justice Department

• NSFDC Official Guidelines

• LIDCOM District Offices (for offline form submission and queries)