Coir Udyami Yojana 2026

This scheme offers loans to Safai Karamcharis and their dependents to build and run 'Pay and Use' Read More... community toilet units, promoting clean sanitation and self-employment. Read less

Details

The Ministry of Social Justice and Empowerment, through the National Safai Karamcharis Finance and Development Corporation (NSKFDC), has introduced a special loan scheme. It's designed to help Safai Karamcharis, manual scavengers, and their families start their own sanitation businesses.

What Is This Scheme?

This is a loan-based initiative aimed at boosting entrepreneurship among individuals from the Safai Karamchari community. The goal is to provide financial support to set up and manage 'Pay and Use' community toilet facilities. These toilets will be accessible to households lacking private facilities and to the general public in busy areas like bus stands and markets.

Who Can Benefit From This Scheme?

The scheme is primarily for Indian citizens who are 18 years or older and fall into the following categories: Safai Karamcharis, manual scavengers, and their dependents. The loans are channelled through various financial institutions, making it easier for the target group to access funds.

Why This Scheme Is Important

This initiative plays a crucial role in empowering Safai Karamcharis by offering them a pathway to a dignified livelihood. It helps them transition from manual scavenging to running a profitable sanitation business. By promoting 'Pay and Use' toilets, it also contributes to better public sanitation and hygiene, reducing the need for manual scavenging.

Objective

This scheme offers loans to Safai Karamcharis and their dependents to build and run 'Pay and Use' community toilet units, promoting clean sanitation and self-employment.

Benefits

Beneficiary’s Contribution (of Project Cost):5%

Bank Credit:55%

Rate of Subsidy (of project cost):40%

Note:

The maximum admissible cost of the project is ₹10,00,000/- plus working capital. Working capital shall not exceed 25% of the project cost. Subsidy will be computed excluding the working capital component.
The Bank will sanction 95% of the project cost after adjusting 5% beneficiary contribution deposited and disburse the full amount of the project cost, including the beneficiary contribution, in installments for setting up the project.

Sources and references

Guidelines

Eligibility Criteria

To apply for this scheme, you must meet the following criteria:

Be an Indian citizen aged 18 years or above.
Belong to the category of Safai Karamcharis, manual scavengers, or their dependents.
Individuals, self-help groups, or cooperative societies from the target group are eligible.
Proof of identity as a Safai Karamchari or manual scavenger will be required. This can be a certificate from a local revenue or municipal officer, or a gazetted officer, among others. Individuals identified as manual scavengers under the MS Act, 2013, do not need to provide this certificate if their name is on the final list.

How To Apply

Interested individuals can apply through the following steps:

Approach your nearest State Channelizing Agency (SCA), Regional Rural Bank (RRB), or Public Sector Bank (PSB).
Submit a formal loan application along with all the required documents.
The Channelizing Agency will process your application based on the scheme guidelines.

For more details or to find an SCA, you can visit the official NSKFDC website or contact them directly.

Documents Required

Proof of identity (like Aadhaar Card, Voter ID).
Proof of age (like Birth Certificate, School Leaving Certificate).
A detailed project proposal for setting up the Pay & Use Community Toilet.
Evidence of your occupation as a Safai Karamchari or manual scavenger, if applicable.
Any other documents as requested by the Channelizing Agency.

FAQ’s

Can groups like Self-Help Groups (SHGs) or cooperatives apply for this scheme?

Yes, absolutely! The scheme is open not just to individuals, but also to Self-Help Groups (SHGs) and cooperative societies formed by eligible members.

What's the total loan amount I can get to build a community toilet?

You can get a loan of up to ₹25 lakh for setting up a single 'Pay and Use' community toilet unit. This amount covers construction and operational costs.

How long do I have to repay the loan?

You get a generous repayment period of up to 10 years. This period starts after an initial 6-month moratorium on principal repayment and a 6-month implementation period for setting up the toilets.

What are the interest rates for this loan scheme?

The standard interest rate is 4% per annum. Women beneficiaries get an even lower rate of 3% per annum. Plus, if you repay the loan on time, you get a further concession to 2.5% per annum.

What if I am a manual scavenger and my name is already on the government list?

If your name is already on the final list of manual scavengers prepared by the State/UT Government, you do not need to provide a separate certificate proving your occupation as per the MS Act, 2013.

What kind of proof do I need to show that I am a Safai Karamchari or manual scavenger?

You'll need a certificate from a local Revenue Officer, Municipal Officer, Cantonment Executive Officer, Railway Officer, head of a Government Department (not below Gazetted Officer rank), an elected Municipal Body member, or a Gram Panchayat Pradhan. If you are identified as a manual scavenger under the MS Act, 2013, and your name is on the official list, you won't need this certificate.

Is it mandatory to provide collateral for this loan?

No collateral is generally required for loans up to ₹1.25 lakh. For larger loan amounts, the security requirements might differ based on the specific terms set by the Channelizing Agency you apply through.

Where should I go to apply for this loan scheme?

You need to approach a Channelizing Agency (CA). These include State Channelizing Agencies (SCAs), Regional Rural Banks (RRBs), and Public Sector Banks (PSBs) that are partnered with the scheme.