Bank Loan Processing Fee Reimbursement Scheme

The Bank Loan Processing Fee Reimbursement Scheme is a government support initiative that refunds the processing fee charged by banks on sanctioned loans. Instead of absorbing this non-refundable cost, you can claim reimbursement after loan disbursement, subject to scheme rules. The objective is clear. Encourage formal borrowing, ease access to institutional credit, and reduce financial friction for micro and small enterprises. By offsetting processing charges, the scheme improves loan affordability without altering interest rates or repayment terms.

This scheme addresses a loan expense that most borrowers often overlook yet must pay—the processing fee. Instead of reducing interest rates, it provides financial relief after the loan is sanctioned, easing the overall cost burden.

Key benefits include:

• Reimbursement of the processing fee paid at the time of loan sanction

• Lower effective borrowing cost without altering the EMI structure

• Improved liquidity during the initial repayment phase

• Encouragement to shift from informal credit to formal banking channels

• Applicability to commonly used products, including business loans.
   

The Bank Loan Processing Fee Reimbursement Scheme does not affect the bank’s credit appraisal or loan terms. The reimbursed amount simply strengthens the borrower’s working capital and enhances financial flexibility.

Eligibility focuses on formal compliance and genuine credit usage. The scheme applies only when borrowing is routed through recognised banking institutions.

You are typically eligible if:

• You operate as a micro or small enterprise recognised under applicable MSME norms

• The loan is sanctioned by a scheduled commercial bank or an approved financial institution

• The loan account is active and compliant, with no default at the time of application

• The processing fee is clearly mentioned in the bank sanction letter or the fee receipt

• The loan is taken for permitted business purposes, such as expansion, equipment purchase, or working capital
   

The Bank Loan Processing Fee Reimbursement Scheme does not cover informal lenders or unregulated credit sources. This condition reinforces disciplined borrowing behaviour.

Documentation ensures transparency and prevents misuse. You must demonstrate that the fee was genuinely paid and linked to an eligible loan.

Commonly required documents include:

• Loan sanction letter issued by the bank

• Processing fee receipt or bank debit confirmation

• Proof of enterprise registration under the relevant MSME provisions

• Bank account details for reimbursement credit

• Declaration confirming compliance with scheme conditions
   

Ensure all documents are consistent. Mismatches in loan amount, applicant name, or bank details can delay reimbursement under the Bank Loan Processing Fee Reimbursement Scheme.

Follow these steps:

1. Access the Portal

Navigate to the official https://www.scsthub.in homepage to begin the process.

2. Create a New Account

Locate and click on the sign-up button. To generate your profile, you will be prompted to enter the following essential details:

• Full Name

• Valid Email ID

• Mobile Number

• Password and confirm password (Ensure they match for security)

3. Access Your Profile

Once your account is created, click on login and enter your credentials to enter the dashboard.

4. Finalize Your Application

After successful login, proceed to fill in and complete the required information to finish your registration and access the hub's services.