Credit Based Schemes for SC - Term Loan (TL) by NSFDC

What is the NSFDC Term Loan scheme?

The Credit Based Scheme "Term Loan (TL)" is run by the National Scheduled Castes Finance and Development Corporation (NSFDC), a company under the Ministry of Social Justice and Empowerment. According to the NSFDC portal, the corporation exists to promote the economic empowerment of persons belonging to Scheduled Castes by providing concessional financial assistance for income-generating activities.

The Term Loan is NSFDC's core credit product for larger self-employment ventures. It finances up to 90% of the cost of a unit, for projects costing more than Rs 1.40 lakh and up to Rs 50 lakh, with NSFDC's own share going up to about Rs 45 lakh per unit. The remaining project cost is met by the channelising agency's margin money or the beneficiary's own contribution.

Key features

• Concessional interest: NSFDC lends to State Channelising Agencies at 4% per annum, and the agency on-lends to Scheduled Caste beneficiaries at up to 8% per annum.
• Long repayment: quarterly instalments spread over about seven years.
• A six-month moratorium before repayment starts, extended to twelve months for plantation and construction activities.
• Delivered entirely through channelising agencies, not directly to individuals.

NSFDC is a refinancing and wholesale-lending body. It does not open branches or lend to citizens across the counter. Instead, it channels money to State Channelising Agencies (usually the state SC development or finance corporation), regional rural banks and other partners, who identify beneficiaries, sanction loans and recover instalments.

Who is eligible for the NSFDC Term Loan?

You can apply if:

• You belong to a Scheduled Caste community, with a valid caste certificate.
• Your annual family income does not exceed Rs 5 lakh. The ceiling effective from 7 January 2026, applied equally to rural and urban applicants.
• You have a viable income-generating activity whose unit cost falls above Rs 1.40 lakh and up to Rs 50 lakh.

Partnership firms and cooperative societies can also borrow, but only where every member belongs to a Scheduled Caste and each member individually satisfies the income ceiling.

You cannot apply if:

• You do not belong to a Scheduled Caste.
• Your annual family income exceeds Rs 5 lakh.
• You are part of a firm or society in which any member is not from a Scheduled Caste or exceeds the income limit.

Because the scheme is delivered through State Channelising Agencies, individual applicants who approach NSFDC head office directly are not entertained, the proposal must come through the designated channel.

What can the Term Loan be used for?

The Term Loan supports a wide range of self-employment and enterprise activities, including:

• Agriculture and allied activities such as dairy, poultry and land development.
• Small business, trade and shop-based ventures.
• Transport and service-sector units.
• Artisan, handicraft and small manufacturing units.

The activity must be commercially viable, and the project cost must sit within the scheme's slab of more than Rs 1.40 lakh and up to Rs 50 lakh.

What documents are required for the NSFDC Term Loan?

The State Channelising Agency may ask for additional documents from its own checklist, such as collateral or guarantor papers depending on the loan size.

How to apply for the NSFDC Term Loan

1. Identify your State Channelising Agency (SCA) — usually the state Scheduled Caste development or finance corporation: or a partner channelising agency, regional rural bank or bank.
2. Prepare your project report setting out the activity, unit cost and how the loan will be repaid, along with your caste and income certificates.
3. Submit your application offline at the district or head office of the SCA, or online through the PM-SURAJ portal at pmsuraj.dosje.gov.in by registering with your mobile number and OTP, filling the form and uploading documents.
4. Track your application using the Application ID generated on the portal, or follow up with the SCA office.
5. Complete sanction formalities with the SCA once the proposal is approved; the loan is disbursed and repaid through the agency in quarterly instalments.

Because NSFDC works only through channelising agencies, the single most important step is to route your proposal through the correct SCA in your state rather than contacting NSFDC directly.

Help and where to get support

NSFDC does not run a public grievance helpline for individual borrowers, as it does not deal with them directly. For application help, contact the State Channelising Agency in your state or use the query facility on the PM-SURAJ portal (pmsuraj.dosje.gov.in). Scheme information is published on the NSFDC website at nsfdc.nic.in, under the Schemes and How to Apply sections.