Loan Based Schemes for Safai Karamchari

The National Safai Karamcharis Finance & Development Corporation (NSKFDC), established in 1997, supports Safai Karamcharis through welfare schemes promoting self-employment, skill development, and socio-economic upliftment across India.

The general term loan schemes for Safai Karamcharis are extended through the NSKFDC. Understanding the details of these schemes can serve as the key for the Safai Karamcharis to unlock access to the formal financial system in the country.

The General Term Loan (GTL) Scheme, launched by the NSKFDC, provides financial assistance to Safai Karamcharis, manual scavengers, and their dependents. The scheme aims to promote self-employment and economic upliftment by offering affordable loans for setting up businesses, purchasing income-generating assets, or expanding existing ventures. Beneficiaries can get up to ₹15 Lakhs at concessional interest rates, making it an important initiative to improve livelihood opportunities and financial inclusion within this community.

The GTL scheme aims to promote entrepreneurial and economic empowerment among Safai Karamcharis by offering the following features and benefits:

• The Loan amount can be up to ₹15 Lakhs, with a maximum 90% coverage of the unit or project cost.

• The remaining 10% is provided by State Channelising Agencies (SCAs) through loans, subsidies, promoter's contribution, or other sources.

• Interest rates include 4.5% per annum charged by SCAs, and 9% per annum charged to beneficiaries.

• The money can be repaid in a period of 10 years, including an implementation period of 4 months and a moratorium of 6 months. 

• Promoter’s contribution is not required for projects costing up to ₹2 Lakhs. However, for projects above ₹2 Lakhs, up to 5% promoter’s contribution is mandated.

• The scheme serves as a financial aid for sanitation workers with limited access to formal funding. Through financial aid, these workers can opt for other occupations to improve their livelihood.

• The scheme offers a low-interest rate and flexible repayment structure, lowering the financial burden of the workers.

• It acts as an exemplary push that motivates the workers to develop new skills, enhance experience, and seek other income-generating activities.

To qualify for the GTL scheme, you need to meet the following conditions:

• Must authenticate as a Safai Karamchari, manual scavenger or their dependents.

• Registered co-operative societies or legally constituted associations/firms promoted by the target group are also eligible.

• Those producing a valid certificate from authorised local government officials such as Revenue Officers, Municipal Officers, Gazetted Officers, or elected representatives confirming their eligibility.

• No fixed income limit is set, but priority is given to those below double the poverty line, women, and disabled members of the target group.

• For manual scavengers identified in state lists under the Manual Scavenging Act, 2013, certificate submission is not required if their name appears in the official final list.

• Financial viability and income-generating capacity of the proposed project are considered during loan appraisal.

As a Safai Karamchari, one can apply for a GTL scheme through the following steps:

Offline method:

• First, visit a nearby District Office or SCA of NSKFDC, Regional Rural Banks (RRBs) or Nationalised Banks that can process the loans under this scheme.

• Request for and fill out the loan application form. Attach the necessary documents such as identity proof and occupation certificate to validate eligibility.

• Once completed, submit the completed application. 

• The district office forwards the viable applications to the Head Office after their verification and appraisal.

• After approval by NSKFDC’s Project Appraisal Committee and Board of Directors, a sanction letter (Letter of Intent) is issued to the SCA/Bank.

• Following acceptance and loan agreement signing by the beneficiary, the funds are disbursed through the SCA/Bank to the applicant.

Alternatively, one can access the loan application form online through https://nskfdc.nic.in/en/content/how-apply/loan-application-form. This, however, needs to be submitted to a nearby District Office or SCA of NSKFDC, Regional Rural Banks (RRBs) or nationalised Banks that can process the loans under this scheme.

It's important that financial support schemes designed for Safai Karamcharis are well-promoted and clearly explained, so they can truly benefit from them. Programmes like the GTL scheme can make a real difference when workers know how to use them effectively. Similarly, if you’re looking for flexible financing options for your own ventures, explore business loans on Bajaj Markets for quick access to funds and hassle-free processing.