Loan-based Schemes for Safai Karamchari – Swachhta Udyami Yojana (SUY)

The Swachhta Udyami Yojana (SUY) is a loan-based scheme for safai karamcharis (sanitation workers) and manual scavengers. The Ministry of Social Justice and Empowerment launched this scheme on 2 October 2014. The National Safai Karamcharis Finance and Development Corporation (NSKFDC) runs the scheme. NSKFDC is a government-owned corporation set up in 1997. It works for the social and financial growth of sanitation workers across India.​

The scheme supports the Swachh Bharat Abhiyan (Clean India Mission). It provides such workers funding to buy sanitation vehicles and equipment. This NSKFDC loan can then be used to start their own sanitation business.

The Swachhta Udyami Yojana aims to promote machine-based cleaning and create jobs for sanitation workers.

• Create proper setup for machine-based sanitation work​

• Set up systems to collect garbage from the source​

• Provide jobs to safai karamcharis and manual scavengers​

• Support self-employment through sanitation-related businesses​

• Reduce unsafe manual cleaning of sewers and tanks

This NSKFDC scheme offers low-interest loans and capital subsidies to help you buy sanitation equipment.

• Get loans up to ₹15 Lakhs as an individual​

• Get loans up to ₹50 Lakhs for groups, SHGs (Self-Help Groups), or cooperatives​

• Pay interest at only 6% per year​

• Women get 1% rebate on interest rate (pay only 5%)​

• Get 0.5% rebate for paying EMIs on time​

• No self funding needed for many projects​

• Get up to 7 years to repay the loan​

This part of the Swachhta Udyami Yojana explains how much you can borrow and on what terms.

• If you are a sanitation worker, you can get an NSKFDC loan up to ₹15 Lakhs as an individual for sanitation vehicles and equipment.

• Groups, self-help groups, joint liability groups, or cooperatives can get up to ₹50 Lakhs for larger sanitation projects.

• The NSKFDC scheme usually funds around 90% of the project cost, so you pay only a small share.

• The State Channelising Agency or partner bank may add its own share, and you give the remaining contribution.

• You pay a maximum interest rate of 6% every year, which stays below normal market rates.

• Women beneficiaries get a 1% interest rebate each year, so they pay only 5% when they qualify.

• You also get a 0.5% interest rebate for timely EMI payment, which lowers the cost of the NSKFDC loan.

• The repayment period usually goes up to 7 years, so your EMIs stay manageable.

• The scheme allows a short moratorium period at the start, so you begin EMIs after the project starts working.

• Capital subsidy under the Swachhta Udyami Yojana reduces your effective loan burden and total repayment.

You can qualify for the Swachhta Udyami Yojana if you meet these main conditions. The scheme targets specific sanitation workers.​

• You work as a Safai Karamchari (sanitation worker) or waste picker.​

• You are considered as a manual scavenger under the Manual Scavengers Act 2013 (MS Act 2013).​

• You belong to the family of a safai karamchari or manual scavenger.

• You form part of a Self-Help Group (SHG), Joint Liability Group (JLG), or cooperative of these workers.​

• Your Urban Local Body (ULB), like a Municipal Corporation, supports your project.​

• You hold a valid occupation certificate from your local authority or Gram Panchayat.​

You cannot apply for this NSKFDC scheme in any of these cases:​

• You work as a domestic worker in homes.​

• Your name does not appear in the official manual scavenger survey.​

• You lack an occupation certificate from local authorities.​

• Your business stays outside sanitation or cleaning work.​

Gather these papers before you fill the NSKFDC application form. They prove your eligibility and project needs.​

• PAN Card for your identity.​

• Address proof like Aadhaar Card or Ration Card.​

• Occupation certificate from your local authority or Gram Panchayat.​

• Work Assurance Letter from your Urban Local Body (ULB).​

• Three separate quotations for your sanitation equipment or vehicle.​

• Detailed work report or project proposal with costs.​

• Your active bank account details and passbook copy.​

Start your Swachhta Udyami Yojana application online or offline. Choose the method that suits you best.​

Offline Process:

• Go to your district office of State Channelising Agency (SCA), Regional Rural Bank (RRB), or nationalised bank.​

• Collect the NSKFDC application form and add your full details.​

• Attach all documents and your project proposal.​

• Hand over the complete form at the district office.​

Online Process:

• Open the NSKFDC website at nskfdc.nic.in.​

• Find and select the Loan Application Form section.​

• Enter your mobile number and confirm with OTP code.​

• Complete the online NSKFDC application form step by step.​

• Upload all required documents and submit your application.​

Your NSKFDC loan follows this clear path from application to money release. Each step checks your project.​

• SCA or bank reviews your application at the district level.​

• They send it to their head office for a full project check.​

• Head office appraises if your project works and makes profit.​

• NSKFDC Project Appraisal Committee studies the proposal.​

• NSKFDC Board of Directors gives final approval.​

• NSKFDC sends a sanction letter (Letter of Intent) to your bank or SCA.​

• You sign the loan agreement and give any extra papers.​

• The bank claims the capital subsidy directly from NSKFDC.​

• The bank releases the full amount (loan plus subsidy) for your equipment buy.

The Swachhta Udyami Yojana gives safai karamcharis a chance to become business owners. You can buy sanitation vehicles with low-interest loans and capital subsidies. The scheme supports machine-based cleaning and creates safe jobs. Visit your nearest SCA or bank to apply and start your sanitation business today. If you need quick funds for extra costs or other needs before SUY approval, check an instant personal loan option.