There are several major centrally sponsored schemes under which credit is provided by banks and subsidy is received through Government Agencies. Credit flow under these schemes is monitored by RBI. Under each of these, there is a significant reservation/relaxation for the members of the SC/ST communities.
SCLCSS for under the National SC/ST hub scheme:
The scheme provides an upfront capital subsidy to SC/ST-owned MSEs on institutional finance for existing as well as new SC/ST-owned MSEs. Capital Subsidy of 25% of the cost of Technical, Plant & Machinery, and Technical, subject to a cap of Rs.30 crore.
Swatchata Udyami Yojana for construction, operation, and maintenance of pay-and-use community toilets:
Under the Scheme, entrepreneurs among Safai Karmacharis and identified manual scavengers can avail of loans up to the defined ceiling at a concessional rate of interest @ 4% per annum. In the case of women beneficiaries, there is a rebate of 1% in the rate of interest charged. The rate of interest on the loan is at 4% with 6 month moratorium for repayment. A maximum capital subsidy of 3.25 lakh is provided in case of manual scavengers under the self-employment scheme for rehabilitation of manual scavengers (SRMS) in accordance with the “Prohibition of Employment as manual scavengers and their rehabilitation Act 2013”.
For Unit Cost: 5 to 10 Lakhs: Loan up to 5 Lakhs
Capital Subsidy: 2 Lakhs + 25 % of the unit cost between ₹ 5 -10 lakh maximum upto ₹ 3.25 Lacs
For Unit Cost 10 to 15 Lakhs: Loan 5 Lakhs
Capital Subsidy: maximum up to ₹3.25 Lacs or 25 % of the unit cost between ₹ 10-15 lakhs.
There will be no beneficiary contribution and the balance amount other than the capital subsidy will be provided as a loan under SUY.
Subsidized Term Loan to SC from National scheduled castes finance and development corporation (NSFDC):
NSFDC provides term loans up to 95% of the cost of the projects for the project(s) units costing Rs up to 50 lakhs. Moratorium 6 months to 12 months Subsidy: At least 50% of funding to the beneficiaries having an annual family income up to Rs. 1.50 lakh and a balance of 50% funding to the beneficiaries having an annual family income above Rs. 1.50 lakh and up to Rs. 3.00 lakh. Eligible maximum Rs.10000/ or 50% of the cost of the project whichever is less and to be provided by SCA.
Loan to SC/ST MSEs:
All the SC-ST MSEs of manufacturing as well as the service sector shall be eligible for a 25% subsidy under the SCLCSS component of the National SC/ST Hub (NSSH) for procurement of Plant & Machinery and equipment through institutional credit (maximum subsidy-Rs. 25 Lakhs). Existing as well as new SC/ST-owned MSEs. Capital Subsidy is subject to a cap of Rs.30 crore.
National SC-ST Hub facilitation 🙁 Sub-schemes)
- Bank Loan Processing Reimbursement Scheme: Reimbursement of 80% or Rs. 1,00,000/- (excluding GST and other applicable taxes), whichever is less, on Bank loan processing charges paid by SC/ST MSEs.
- Reimbursement of 80% or Rs. 1,00,000/- (excluding GST and other applicable taxes), whichever is less, on Performance Bank guarantee charges paid by SC/ST MSEs for participation in tenders of Central/ State Govt. and PSEs.
- Reimbursement of 80% or Rs 20,000/- (excluding GST and other applicable taxes), whichever is less, in a financial year to SC/ST MSEs on membership fees charged by Export Promotion Councils (EPCs).
- Reimbursement of 80% or Rs 1,00,000/- (excluding GST and other applicable taxes), whichever is lower, , charged as a Testing fee, for availing testing services from NABL accredited laboratories & a license or certification fee from BIS, in a financial year.
Deendayal Antyodaya Yojana (DAY-NRLM): – National Rural Livelihoods Mission (DAY-NRLM): Subsidy to urban poor – An interest subsidy of 5% – 7% for setting up individual micro-enterprises with a loan of up to ₹2 lakhs and for group enterprises with a loan limit of up to Rs.10 lakhs.
Shelters for urban homeless – The cost of construction of shelters for urban homeless is fully funded under the Scheme.
Other means – Development of vendor markets and also the promotion of skills for the vendors through setting up infrastructure and special projects for the rag picker and differently abled etc.
DAY-NRLM would ensure adequate coverage of vulnerable sections of society, at least 50% of these beneficiaries are SCs/STs.
Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM).
DAY NULM For individuals, bank loans of up to ₹. 2 lakhs can be availed for individual micro-ventures while for urban groups setting up a group micro-venture, bank loans of up to ₹ 10 lakhs can be availed.
For Self-Help Groups: SHGs belonging to the urban poor will be given bank loans at a rate of interest of 7% p.a. All SHGs belonging to women who repay loans on time will receive an additional 3% p.a. subvention of interest, making the interest rate 4% p.a.
For Self-Employment: Bank loans at an interest rate of 7% p.a. will be provided to the urban poor who wish to set up their own microenterprises or entrepreneurship ventures. For individuals, bank loans of up to ₹.2 lakhs can be availed for individual micro-ventures while for urban groups setting up a group micro-venture, bank loans of up to ₹10 lakhs can be availed.
Under DAY-NULM, advances should be extended to SCs/STs to the extent of their strength in the local population. Details of the scheme are available in the Master Circular on DAY-NULM as updated from time to time.
Differential Rate of Interest (DRI) Scheme:
Under the DRI Scheme, banks provide finance up to ₹15,000/- at a concessional rate of interest of 4 per cent per annum to the weaker sections of the community for engaging in productive and gainful activities. In order to ensure that persons belonging to SCs/STs also derive adequate benefit under the DRI Scheme, banks have been advised to grant eligible borrowers belonging to SCs/STs such advances to the extent of not less than 2/5th (40 percent) of total DRI advances. Further, the eligibility criteria under DRI, viz. size of land holding should not exceed 1 acre of irrigated land and 2.5 acres of unirrigated land, are not applicable to SCs/STs. Members of SCs/STs satisfying the income criteria of the scheme can also avail of housing loans up to ₹20,000/- per beneficiary over and above the individual loan of ₹15,000/- available under the scheme.
Credit Enhancement Guarantee Scheme for Scheduled Castes (CEGSSC)
The CEGSSC was launched by the Ministry of Social Justice & Empowerment on May 6, 2015, with the objective of promoting entrepreneurship amongst the Scheduled Castes (SCs), by providing credit enhancement guarantees to Member Lending Institutions (MLIs), which extend financial assistance to these entrepreneurs. IFCI Ltd. has been designated as the Nodal Agency under the scheme, to issue the guarantee cover in favour of MLIs for financing SC entrepreneurs. The tenure of the guarantee is up to a maximum of 7 years or a repayment period, whichever is earlier. The amount of guarantee cover under CEGSSC ranges from a minimum of ₹0.15 cr to a maximum of ₹5.00 cr.
In addition to the above, NCGTC offers various guarantee schemes for SC/STs under Stand up India scheme
For details read:
Individual SC entrepreneurs/Registered Companies and Societies/Registered Partnership Firms/Sole Proprietorship firms having more than 51% shareholding and management control for the previous 6 months by SC entrepreneurs/ promoters/ members are eligible for a guarantee from IFCI Ltd. against the loans extended by MLIs.