Details

The Ministry of Social Justice and Empowerment has introduced the General Term Loan (GTL) scheme to support Safai Karamcharis and Manual Scavengers. This initiative aims to provide financial assistance for income-generating activities, empowering individuals within this community.

What Is This Scheme?

The General Term Loan (GTL) scheme, operated by the National Safai Karamcharis Finance and Development Corporation (NSKFDC), offers financial support in the form of term loans. These loans are channeled through State Channelising Agencies (SCAs), Regional Rural Banks (RRBs), and Nationalised Banks. The purpose is to fund any viable income-generating projects, including those related to sanitation, with a maximum project cost of ₹ 15.00 lac.

Who Can Benefit From This Scheme?

This scheme is designed for Safai Karamcharis, identified Manual Scavengers, and their dependents. This includes wastepickers and registered co-operative societies or legally constituted associations promoted by these groups. Individuals also need to provide a certificate from specific local authorities to confirm their occupation or status.

Why This Scheme Is Important

The GTL scheme plays a crucial role in promoting economic self-sufficiency and improving the livelihoods of Safai Karamcharis and Manual Scavengers. By providing access to affordable credit, it enables them to start or expand businesses, thereby fostering entrepreneurship and reducing reliance on traditional, often hazardous, forms of labour.

Objective

This scheme from the Ministry of Social Justice and Empowerment provides a general term loan to Safai Karamcharis, Manual Scavengers, and their dependents who are 18 years or older.

Benefits

Working Capital Loan:

1st Tranche:Loan up to ₹15,000/-; repayment within 12 months.
2nd Tranche:Loan up to ₹25,000/-; repayment within 18 months.
3rd Tranche:Loan up to ₹50,000/-; repayment within 36 months.
Next tranche available on timely or early repayment.
No prepayment penalty on early repayment.

Interest Subsidy:

Subsidy at 7% per annum on loan amount.
Credited quarterly to beneficiary’s bank account.
Applicable only for standard (non-NPA) accounts.
Valid up to 31st March 2033.

Digital Transaction Cashback:

Cashback up to ₹100/- per month for digital transactions.

Credit Guarantee Support:

31.87% guarantee cover for 1st tranche loan.
8.25% guarantee cover for 2nd tranche loan.
6% guarantee cover for 3rd tranche loan.
No charges for lending institutions.

UPI Linked RuPay Credit Card:

Initial credit limit of ₹10,000/-; extendable up to ₹30,000/-.
Validity of 5 years.
Available after successful repayment of 2nd tranche loan.

Sources and references

Guidelines

Eligibility Criteria

Target Group: The scheme is open to Safai Karamcharis (including Wastepickers), identified Manual Scavengers, and their dependents.
Organisations: Registered co-operative societies and legally constituted associations or firms promoted by the target group are also eligible.
Certificate Requirement: Applicants generally need a certificate from a local Revenue Officer, Municipal Officer, Cantonment Executive Officer, Railway Officer, Head of a Government Department (at least Gazetted Officer rank), Elected Member of a Municipal Body, Pradhan of a Gram Panchayat, or the Regional Manager of an RRB/Public Sector Bank.
Manual Scavenger Exemption: If you have been identified as a Manual Scavenger and your name appears in the final list prepared by State Governments/Union Territory Administrations, you do not need to provide this certificate. You can find details on the survey lists at https://nskfdc.nic.in/en/content/home/ms-survey-2018 and https://nskfdc.nic.in/en/node/79798.
Competent Authority for Certificates: For issuing occupation certificates to Safai Karamcharis/dependents, the Mukhia/Sarpanch/President or equivalent authority of a Gram Panchayat can be the issuing authority. In Municipal Bodies without Gazetted Officers, the Head of the Municipal Body can act as the competent authority.

How To Apply

Term loans under this scheme are provided through various financial institutions. You will need to approach your nearest State Channelising Agency (SCA), Regional Rural Bank (RRB), or Nationalised Bank. They will guide you through the application process, assist with project proposal preparation, and facilitate the loan disbursement.

For more details and to find designated agencies, you may visit the official NSKFDC website:

https://nskfdc.nic.in/en/schemes

Documents Required

Aadhaar Card (While not mandatory, it's generally recommended to have it for identification purposes)
Occupation Certificate (Issued by a competent authority as per eligibility criteria)

FAQ’s

Can I get a loan if I work as a domestic helper?

No, this specific scheme is designed for Safai Karamcharis, Manual Scavengers, and their dependents. Domestic workers are not covered under this loan program.

What is the waiting period before I start loan repayments?

The scheme includes a moratorium period of 6 months. This means you won't have to make any loan repayments for the first six months after the loan is disbursed.

If I am identified as a Manual Scavenger, do I need a special certificate to apply?

No, if your name is already on the final list of Manual Scavengers prepared by the State Governments or Union Territory Administration, you do not need to provide an additional certificate of occupation. You can check the survey lists on the NSKFDC website.

What kind of businesses or projects can I fund with this loan?

The scheme supports any viable income-generating project. This includes sanitation-related activities, transport, small businesses, and non-land based ventures. The key is that the project should be financially sound and have the capacity to generate income.

How is the financial assistance provided under this scheme?

Financial assistance is provided in the form of term loans. These loans are disbursed to eligible individuals and groups through a network of State Channelising Agencies (SCAs), Regional Rural Banks (RRBs), and Nationalised Banks.

Does the scheme consider my income when approving the loan?

While there isn't a strict income limit, NSKFDC prioritises applicants. They give preference to Manual Scavengers (especially those with income below double the poverty line), women from the target group, and persons with disabilities from the target group. The financial viability and income-generating potential of your proposed project are key factors in loan approval.

Am I eligible if I work as a Waste Picker?

Yes, if you are a Waste Picker, you are considered part of the target group and are eligible to apply for this loan scheme.

PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) 2026