Credit Based Schemes For SC - Term Loan (TL) 2026

This Central Sector Scheme by the Ministry of Tribal Affairs supports registered voluntary organisations working for the Read More... welfare and development of Scheduled Tribes (STs) across India. Read less

Details

The Ministry of Tribal Affairs, Government of India, has introduced a vital scheme to empower Scheduled Tribes (STs). This initiative, known as the 'Scheme of Grant-in-Aid to Voluntary Organisations Working for the Welfare of Scheduled Tribes,' aims to bridge service gaps and enhance the reach of government welfare programs.

What Is This Scheme?

This scheme provides financial assistance, or grant-in-aid, to voluntary organisations (VOs) and non-governmental organisations (NGOs) that are actively working for the socio-economic upliftment and overall development of Scheduled Tribes. It focuses on areas like education, health, drinking water, agriculture, and social security, especially in regions where services are limited.

Who Can Benefit From This Scheme?

The direct beneficiaries are individuals belonging to Scheduled Tribes. However, the scheme's support is channelled through registered NGOs and VOs that meet specific criteria and are committed to improving the lives of ST communities.

Why This Scheme Is Important

By partnering with NGOs, the government can extend its welfare initiatives more effectively to remote and underserved tribal areas. The scheme encourages innovative approaches to livelihood generation and socio-economic development, ensuring that tribal communities get the support they need to thrive.

Objective

This Central Sector Scheme by the Ministry of Tribal Affairs supports registered voluntary organisations working for the welfare and development of Scheduled Tribes (STs) across India.

Benefits

Term loan up to 95% of the cost of projectUpto Rs.5.00 lakhat Interest rates of6%

Term loan up to 95% of the cost of projectAbove Rs. 5.00 lakh & upto Rs.10.00 lakhat Interest rates of8%

Term loan up to 95% of the cost of projectAbove Rs. 10.00 lakh & upto Rs.50.00 lakhat Interest rates of9%

Repayment PeriodA term loan is to be repaid in quarterly/half-yearly/yearly installments, within a maximum period of 10 years.Moratorium Period6 months to 12 months depending upon the nature of the business activity

Sources and references

Scheme Guidelines

Eligibility Criteria

The organisation must be a registered voluntary organisation (VO) or non-governmental organisation (NGO) dedicated to the welfare of Scheduled Tribes (STs).
It should be registered under the Societies Registration Act, 1860, a State Society Registration Act, or the Public Trust Act, or any other relevant statute.
Registration on the NGO-Darpan portal of NITI Aayog (www.ngodarpan.gov.in) is mandatory.
The organisation must have at least three years of experience running activities similar in scope and objectives to the project for which grants are requested.
The organisation must implement the project itself and not pass on grants to another entity for management.
Agreement to comply with the terms and conditions and sign a Memorandum of Understanding (MoU) with the Ministry is required.
An Aadhaar-linked bank account must be opened in the organisation's name, operated jointly by designated signatories.
The organisation must possess PAN and TAN numbers and have filed Income Tax Returns (ITRs) for the last three years.
Registration under Section 12A of the Income Tax Act is necessary.
The organisation should not be facing bankruptcy, or inquiries/investigations for economic offences by government agencies like CBI, ED, or CBIC.
It must demonstrate sound financial capacity to partially co-finance the project, as Ministry grants primarily support core activities.
Details of trustees, promoters, beneficial owners, and the Management Committee, along with their PAN and Aadhaar numbers, must be submitted.
The organisation should not have been blacklisted by NITI Aayog, Union/State Ministries, or government organisations.
A minimum of 75 beneficiaries are generally required to start a project. However, for educational projects, a minimum of 25 ST students may be considered with justification from the State Government and approval from the Minister of Tribal Affairs.

How To Apply

All grant proposals, both for new and ongoing projects, must be submitted online through the Ministry's NGO portal. Physical applications will not be accepted.
The official portal for submissions is: https://ngo.tribal.gov.in/ngo-login.
Ensure all required documents are gathered and the eligibility criteria are met before submitting the application.
Follow the instructions provided on the portal for filling out the application form and uploading necessary documents.

Documents Required

PAN Card of the organisation.
Detailed budget estimates as per the prescribed norms.
Project-wise Audited Accounts for the last two years, along with the Auditor's Report.
Annual Report of the Organisation for the last two years.
If the project is already running: List of Staff and Beneficiaries' details.
A duly signed Inspection Report.
Registration Certificate under Section 12A of the Income Tax Act.
List of Management Committee members, including beneficial owners.
A self-declaration confirming the location and legitimacy of the project premises.
Surety Bond along with a resolution from the Governing body and an Authorization letter.
Details of the Aadhaar-linked Bank Account.

FAQ’s

What is the main goal of this grant scheme?

The primary goal is to boost the impact of government welfare schemes and fill service gaps in tribal areas. It supports education, health, water, agriculture, and social security, aiming for the socio-economic growth and overall development of Scheduled Tribes through the work of voluntary organisations.

Can NGOs outside India apply for this grant?

The scheme is designed for registered voluntary organisations (VOs) /non-governmental organisations (NGOs) working within India for the welfare of Scheduled Tribes. International organisations are not mentioned as eligible in the provided details.

What types of projects get special attention under this scheme?

Projects focusing on Particularly Vulnerable Tribal Groups (PVTGs), areas affected by Left Wing Extremism (LWE), and tribal populations in remote or difficult regions are given priority.

What if an organisation is already running a project? What documents are needed?

If the project is already operational, you'll need to submit a list of staff members and details of the beneficiaries who are currently being served.

What is the minimum number of beneficiaries required to start a project?

Generally, a project needs at least 75 beneficiaries to begin. However, for educational projects, this number can be as low as 25 tribal students, provided there's a strong justification from the State Government and approval from the Union Minister of Tribal Affairs.

Are there any specific categories of work eligible for grants?

Yes, grants are considered for projects in education (schools, hostels), health (hospitals, mobile dispensaries), and livelihood enhancement (agriculture, animal husbandry, water conservation). Grants can also be provided for emergency relief during calamities.

How does an organisation prove it's experienced enough to apply?

The organisation needs to show it has been actively involved in similar activities for at least three years, matching the size and objectives of the project for which it is seeking grants.

What if an organisation faces financial difficulties or legal issues?

An organisation cannot apply if it is facing bankruptcy or is under inquiry or investigation for economic offences by any central or state government agency, including the CBI or ED.

Who is responsible for implementing the project funded by this grant?

The registered organisation that receives the grant is responsible for implementing the project directly. It cannot pass on the funds to any other entity for management.

Is it mandatory for NGOs to use the online portal to apply?

Yes, absolutely. All grant applications, whether for new or ongoing projects, must be submitted exclusively through the Ministry's dedicated NGO portal. Physical applications are not accepted.

What specific tax-related registrations are required for NGOs?

The organisation must be registered under Section 12A of the Income Tax Act. It also needs to have a PAN and TAN and have filed Income Tax Returns for at least the last three years.

Which government ministry or department offers this scheme?

This scheme is implemented by the Ministry of Tribal Affairs, Government of India.