NSFDC Micro Credit Finance Scheme 2026: Up to ₹1.25 Lakh Loan for SC Entrepreneurs
Verified with the official myScheme record on हिंदी में पढ़ें
Quick answer
The NSFDC Micro Credit Finance scheme provides financial assistance of up to ₹1.25 lakh to individuals from the Scheduled Caste community to set up small self-employment units. Applicants must have an annual family income of less than ₹3,00,000 to be eligible for loans at a 6.5% interest rate. Eligible candidates can apply by submitting the prescribed form offline at their District Office of State Channelising Agencies.
At a glance
| Main benefit | Up to ₹1.25 Lakh Loan at 6.5% |
| Ministry / department | Ministry Of Social Justice and Empowerment |
| Level | Central Government |
| Income limit | ₹3 lakh |
| Application mode | Offline |
About the scheme
Implemented by the National Scheduled Castes Finance and Development Corporation (NSFDC) under the Ministry of Social Justice and Empowerment, the Micro Credit Finance scheme promotes small-scale entrepreneurship among the Scheduled Caste community. It supports micro-enterprises with unit costs up to ₹1,40,000, funding small ventures like tea stalls, bakeries, cycle repair shops, beauty parlours, and animal husbandry. Financial assistance is disbursed through State Channelising Agencies, Public Sector Banks, Regional Rural Banks, and NBFC-MFIs to help low-income families attain sustainable livelihoods.
Benefits
- Financial assistance covering up to 90% of the project cost, subject to a maximum loan amount of ₹1.25 lakh.
- Concessional interest rate of 6.5% per annum charged from the beneficiaries.
- Repayment period of up to 3 years in quarterly instalments.
- Moratorium period of 3 months included before repayment starts.
- Supports business units costing up to ₹1,40,000 across viable retail, trade, and service activities.
Who can apply (eligibility)
- The applicant must belong to the Scheduled Caste community.
- Annual family income of the applicant must be less than ₹3,00,000 in both rural and urban areas.
- Partnership firms and co-operative societies are eligible provided all members belong to the Scheduled Caste community.
- For partnership firms and co-operative societies, the annual family income of each member must not exceed ₹3,00,000.
Who cannot apply
- Applicants with an annual family income of ₹3,00,000 or above are not eligible.
- Partnership firms or co-operative societies having any non-Scheduled Caste members are excluded.
- Direct loan applications sent directly to NSFDC without routing through Channelising Agencies are not entertained.
Documents required
- Passport-size photograph
- Aadhaar card
- Caste certificate
- Income certificate
- Proof of residence
- Bank passbook or bank account details
- Experience certificate or business details
- Any other documents required by the Channelising Agency
How to apply
- 1Visit the District Office of the State Channelising Agency (SCA) or an affiliated partner bank like a Regional Rural Bank or Public Sector Bank.
- 2Collect the NSFDC loan application form and fill in the required personal and proposed business details.
- 3Attach self-attested copies of your caste certificate, income certificate, Aadhaar card, residence proof, and bank passbook.
- 4Submit the completed application form along with passport-size photographs to the District Office of the SCA or CA.
- 5Wait for the district and head offices of the channelising agency to review and forward your viable proposal to NSFDC.
- 6Receive the sanctioned loan amount from your channelising agency once NSFDC approves the appraisal and releases funds.
Frequently asked questions
What is the maximum loan amount provided under this scheme?+
NSFDC provides loans up to 90% of the project cost, with a maximum loan limit of ₹1.25 lakh for project units costing up to ₹1,40,000.
What is the interest rate charged to beneficiaries?+
Beneficiaries are charged an interest rate of 6.5% per annum. NSFDC lends to channelising agencies at 2.5%, which in turn lend to beneficiaries at 6.5%.
Who is eligible to apply for NSFDC Micro Credit Finance?+
Applicants must belong to a Scheduled Caste community and have an annual family income of less than ₹3,00,000 in rural or urban areas.
What is the repayment tenure for this loan?+
The loan must be repaid in quarterly instalments within a maximum period of 3 years from disbursement, including a 3-month moratorium period.
Can cooperative societies or partnership firms apply?+
Yes, partnership firms and co-operative societies are eligible provided every member belongs to the Scheduled Caste community and each member's annual family income does not exceed ₹3,00,000.
Can I apply directly to the NSFDC head office?+
No, applicants must apply exclusively through the District Offices of State Channelising Agencies (SCAs) or designated partner banks.
Which businesses are eligible for funding?+
Viable income-generating activities such as tea shops, bakeries, cycle repair, candle making, beauty parlours, goat rearing, incense stick making, vegetable vending, and papad or pickle manufacturing are eligible.
NaukriZila is not a government website. Apply only on the official portal; never pay anyone to apply for a government scheme. Source: myScheme (Government of India)