Bank Loan Processing Fee Reimbursement Scheme

What is the Bank Loan Processing Fee Reimbursement Scheme?

The Bank Loan Processing Fee Reimbursement Scheme is a sub-component of the National SC-ST Hub (NSSH), a programme of the Ministry of Micro, Small and Medium Enterprises implemented by the National Small Industries Corporation (NSIC). The scheme is designed to reduce the up-front cost of borrowing for Scheduled Caste and Scheduled Tribe entrepreneurs, so that more SC/ST-owned enterprises take institutional credit instead of relying on informal finance.

According to the National SC-ST Hub, the scheme reimburses 80% of the bank loan processing charges paid by an eligible enterprise, subject to a cap of Rs 1,00,000 (excluding GST and other applicable taxes), whichever is lower. It covers both fund-based loans (such as term loans and cash credit) and non-fund-based facilities (such as bank guarantees and letters of credit).

Main features

• Reimbursement of 80% of the processing charge, capped at Rs 1,00,000.
• Applies to SC/ST-owned micro and small enterprises.
• Covers both fund-based and non-fund-based loans.
• Delivered directly to the enterprise's bank account after verification.

Why the scheme exists

The National SC-ST Hub was set up to help Scheduled Caste and Scheduled Tribe enterprises meet the quality and credit standards needed to participate in the mainstream economy, including the public-procurement target that requires central ministries and PSUs to source a share of their purchases from SC/ST-owned MSEs. A recurring barrier for a first-time SC/ST entrepreneur is the up-front cost of formal borrowing: banks levy a processing charge on every sanctioned loan, and on a large facility this can run into tens of thousands of rupees before a single rupee is disbursed. The Bank Loan Processing Fee Reimbursement Scheme removes that specific friction by returning most of the charge after the loan is taken, so the fee stops being a reason to avoid institutional credit. Because it covers both fund-based and non-fund-based facilities, it applies whether the enterprise takes a term loan, a cash-credit limit or a bank guarantee.

Who is eligible for the Bank Loan Processing Fee Reimbursement Scheme?

You can apply if:

• Your enterprise is a micro or small enterprise majority-owned by one or more SC/ST entrepreneurs.
• The enterprise has a valid Udyam Registration.
• The enterprise has taken a business loan from an eligible financial institution and paid a processing charge on it.

You cannot apply if:

• The enterprise is not majority-owned by SC/ST entrepreneurs. The scheme is a targeted SC/ST support and general enterprises are not eligible.
• The enterprise has no Udyam Registration.
• There is no documented processing charge paid (for example, the loan was not sanctioned or the fee was waived).

How much is reimbursed?

The scheme pays back 80% of the loan processing charges levied by the financial institution, up to a maximum of Rs 1,00,000, excluding GST and any other taxes. Whichever is lower — 80% of the actual charge or the Rs 1,00,000 ceiling; is the amount released. Because the reimbursement is calculated on the charge actually paid, keep the fee receipt or the bank's charge statement safe.

What documents are required?

How to apply for the Bank Loan Processing Fee Reimbursement Scheme

1. Ensure the enterprise has a valid Udyam Registration and that ownership by SC/ST entrepreneurs is documented with a caste certificate.
2. Take (or identify) the business loan from an eligible financial institution and obtain the processing-fee receipt or charge statement.
3. Register and log in on the National SC-ST Hub portal at scsthub.in.
4. Open the Bank Loan Processing Fee Reimbursement Scheme application and fill in the enterprise and loan details.
5. Upload the Udyam Registration, caste certificate, GST (if any), and the processing-fee receipt, and provide bank details for the transfer.
6. Submit the claim. NSIC verifies the documents and releases the reimbursed amount to the enterprise's bank account.

Help and contact

• National SC-ST Hub helpline: 1800-11-1954 (toll-free)
• Email: scsthub@nsic.co.in
• Portal: scsthub.in

The National SC-ST Hub delivers the reimbursement directly to the enterprise, so no agent is required. Verify the current reimbursement percentage and ceiling on scsthub.in before you apply, as NSSH parameters are periodically revised.

How to check your application status

The National SC-ST Hub portal does not publish a separate real-time tracker page for this specific reimbursement, so status checks rely on the account you registered with and, where needed, direct follow-up.

1. Log in to scsthub.in with the credentials you used to submit the claim. Go to your applicant dashboard; submitted claims usually show a status such as "submitted", "under verification", "sent back for correction" or "approved/disbursed".
2. Check the registered email and mobile number you gave at the time of application. NSIC generally sends an update when a claim moves from verification to approval, or when it is returned for a missing document.
3. Note your application or reference number at the time of submission and keep it safe. If you ever call or email the helpline, quote this number first; without it, staff cannot look up the specific claim among the many the Hub processes.
4. Call the National SC-ST Hub helpline at 1800-11-1954 (toll-free) if the portal dashboard has not updated for several weeks after submission, or if the status is unclear. Have the application/reference number, the enterprise's Udyam number and the loan account details ready before you call.
5. Email scsthub@nsic.co.in as a written follow-up if the phone line is busy or you want a documented response, mentioning the application number, Udyam Registration number and the date the claim was filed.
6. Watch for a "returned for correction" status. Because this is a document-verification-based reimbursement rather than an instant transfer, the most common intermediate state is NSIC asking for a clearer copy of the fee receipt or an additional bank detail. Respond and re-upload promptly through the same portal login rather than filing a fresh application, since a duplicate claim can itself cause delay or confusion during verification.
7. Confirm disbursal through your bank statement. Since the reimbursement is credited directly to the enterprise's bank account, the final proof of completion is the credit entry itself rather than a portal message; check the account you listed in the application once the portal shows an "approved" or "disbursed" status.

There is no SMS-based status service for this particular reimbursement, so the portal login and the toll-free helpline remain the two working channels for an applicant who wants to know where their claim stands.

Common reasons for rejection

Most rejections or hold-ups on this reimbursement trace back to a small set of avoidable gaps between what the scheme requires and what gets submitted.

• Enterprise ownership not clearly SC/ST-majority. If the Udyam Registration or other enterprise records do not clearly show that the enterprise is majority-owned by SC/ST individuals, the claim is rejected at the eligibility check. Fix: make sure the ownership structure on the Udyam certificate and the caste certificate of the owner(s) match, and that a partnership or company's shareholding pattern demonstrably gives SC/ST individuals majority control before you apply.
• Udyam Registration missing, lapsed, or wrongly classified. A claim filed without a valid Udyam Registration, or where the enterprise no longer qualifies as micro or small (for example it has grown past the small enterprise investment/turnover limits), is not processed. Fix: verify the Udyam certificate is current and still shows a micro or small classification before submitting the claim, and re-register if the details have changed.
• Processing fee receipt does not match the loan actually taken. Claims are checked against the specific loan the applicant names, so a receipt for a different facility, a different applicant entity, or an amount that does not tally with the bank's charge statement is a frequent cause of rejection. Fix: submit the exact fee receipt or charge certificate issued by the lending institution for the loan being claimed against, in the enterprise's own name.
• Claim filed after the window has closed. Because claims must be submitted within 45 days of the date the loan was sanctioned, a claim filed later than this is rejected regardless of how strong the rest of the application is. Fix: start the application as soon as the loan is sanctioned and the processing fee is paid, rather than waiting until the loan is fully disbursed or utilised.
• Loan taken from a non-eligible or unrecognised financial institution. If the lender is not a bank or financial institution the Hub recognises for this reimbursement, the claim does not qualify. Fix: confirm with the Hub helpline or the bank itself, before applying, that the lending institution falls within the scheme's coverage.
• Bank account details do not match the enterprise. A reimbursement cannot be credited if the account number, IFSC code or account holder name supplied does not match the applicant enterprise's own account. Fix: use the enterprise's current operative bank account and double-check the account number and IFSC before submitting.
• Incomplete or illegible document uploads. A scanned caste certificate, Udyam certificate or fee receipt that is cropped, blurred, or missing a page is a routine cause of a claim being sent back for correction. Fix: re-scan each document as a complete, legible copy before uploading, and check the preview on the portal rather than assuming the upload succeeded.
• Reimbursement already claimed once against the same loan. The scheme reimburses the processing charge on a given loan once; a second claim against the same sanctioned loan is rejected as a duplicate. Fix: keep the approval record for any loan already reimbursed, and only file fresh claims for a new loan or facility.

When a claim is returned rather than outright rejected, responding through the same portal login with the corrected document is faster than starting a new application, since NSIC's verification team is already working against the original reference number.