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About Loans for Scheduled Caste
The Scheduled Castes and Scheduled Tribes of India have always been disadvantaged – both socially and otherwise. Since independence however, India has been making amends to this underprivileged social group by offering concessions and reservations in all walks of life.
In the modern times of equality for all, banks and NBFCs have introduced new loans for scheduled caste and scheduled tribes that offer special benefits to this hitherto ignored strata of society. The objective is to aid in their upliftment.
Here are some of the loans available for scheduled caste and scheduled tribes -National Scheduled Caste Finance and Development Corporation (NSFDC)
NSFDC has a number of products especially for the scheduled caste. These products help support children’s education, purchase of loans, vocational training, agricultural initiatives, and women empowerment among others.
| Scheme Name | Loan Amount | Finance Limit | Interest Rate | Other Provisions |
| Term Loan for Scheduled Caste: | Loans of up to 30 lakhs | Up to 90% of project cost | Between 3% and 10% p.a. | Subsidy of 10,000/- or 50% or project cost whichever is less for BPL (Below Poverty Line) Applicants. |
| Micro Credit Finance Scheme (MCF): | Maximum financing of Rs.50,000 | Up to 90% of the project cost. | Between 2% and 5% p.a. | Loan must be repaid within 3 years through quarterly EMI including 90 day moratorium period. |
| Mahila Samriddhi Yojna (MSY): | Maximum financing of Rs.50,000. | Up to 90% of the project cost. | Between 1% and 4% p.a. | Loan must be repaid within 3 years through quarterly EMI including 90 day moratorium period. |
| Mahila Kisan Yojna (MKY): | Maximum financing of Rs.50,000. | Up to 90% of the project cost. | Between 2% and 5% p.a. | Loan must be repaid within 10 years through quarterly EMI including 90 day moratorium period. |
| Shilpi Samriddhi Yojna (SSY): | Maximum financing of Rs.50,000. | Up to 90% of the project cost. | Between 2% and 5% p.a. | Loan must be repaid within 5 years through quarterly EMI including 90 day moratorium period. |
| Educational Loan Scheme: | 10 – 20 Lakhs | Up to 10 lakhs for education in India Up to 20 lakhs for education overseas |
Financing Scheduled Caste/Scheduled Tribes
Offered by Bank of Baroda, this loan is for rural development. It can also be utilized as loan for schedule caste or scheduled tribes. Here are the key features -
- Loan may be utilized for purchase of agricultural and farming tools and implements, purchase of bullocks, laying down irrigation system and other agriculture related projects.
- The project should be on land allotted by state government.
- The loan may also be utilized for subsidiary occupations like fisheries, poultry, bee breeding, and animal husbandry.
- The applicant may utilize the loan as working capital.
- The loan covers a cash credit of 12 months with tenure of 7 years.
Dr. B.R. Ambedkar Development Corporation Limited – Self Employment Scheme
Dr. B.R. Ambedkar Development Corporation is an undertaking by the Government of Karnataka. The corporation offers a self-employment scheme for scheduled caste and schedule tribes under which loans are granted to establish businesses and other self-employment opportunities for SC/ST youth. The key features of the loan include –
- The loan is subsidized by the corporation
- The total amount of subsidy is subject to a maximum of 35000 where the project cost is 1 lakh or less.
- For projects of 2 lakh and above the maximum subsidy available is 33% of the cost.
- The maximum finance for dairy business is 58,500 per unit.
- The maximum subsidy for dairy business is 25000.
There are many loan products available in the market. Selecting the best for your requirements can be confusing. These products offer higher amounts at lower rate of interest bearing in mind the needs of the marginalized sections of society who are struggling to establish themselves.
The information provided here is subject to change by the concerned bank or institution. Please check the respective websites for detailed and up to date information.
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