Green Business Scheme (GBS)

What is the Green Business Scheme?

Green Business Scheme (GBS) is a concessional loan scheme run by the National Safai Karamcharis Finance and Development Corporation (NSKFDC) under the Ministry of Social Justice and Empowerment. It helps Safai Karamcharis, scavengers and their dependents set up eco-friendly, income-generating ventures, combining a livelihood with cleaner technology.

According to NSKFDC, the scheme funds up to 90% of the project cost, with a maximum loan of Rs 27 lakh for a project costing up to Rs 30 lakh. It supports green activities such as battery electric vehicles, compressed air vehicles, solar energy gadgets and poly houses. The idea is to give this target group a route into modern, low-pollution businesses instead of hazardous manual work.

Key features

• Loan covers up to 90% of the project cost, capped at Rs 27 lakh.
• Beneficiary interest rate of 4% to 7% per annum, depending on loan size.
• Additional 1% interest rebate for women beneficiaries.
• Funds green ventures; electric vehicles, solar gadgets, poly houses and similar activities.
• Repayable over up to 10 years, including a six-month moratorium.

Who is eligible for the Green Business Scheme?

You can apply if:

• You are a Safai Karamchari, scavenger, or a dependent of one.
• Your annual family income is below Rs 3 lakh (the same ceiling applies in rural and urban areas).
• You have a viable green-business project that can be appraised by a State Channelising Agency, Regional Rural Bank or nationalised bank.

You cannot apply if:

• You do not belong to the target category of Safai Karamcharis, scavengers or their dependents.
• Your family income exceeds Rs 3 lakh a year.
• Your proposed activity is not a genuine income-generating green venture, or is not found viable on appraisal.
• You want to borrow directly from NSKFDC — individuals cannot; the loan is routed through a channelising agency or bank.

What documents are required?

How to apply for the Green Business Scheme

NSKFDC delivers the scheme through State Channelising Agencies (SCAs), Regional Rural Banks (RRBs) and nationalised banks. To apply:

1. Approach your State Channelising Agency, the nearest Regional Rural Bank branch, or a nationalised bank branch handling NSKFDC schemes.
2. Prepare a viable green-business project report for the activity you want to set up, for example an electric vehicle, solar gadget or poly house.
3. Fill the loan application form and attach your caste/occupation certificate, income certificate, identity and bank details.
4. Submit the application; the agency or bank appraises the project for viability.
5. On sanction, the loan is disbursed to you, and repayment is made in quarterly instalments over the tenure.

The appraising agency is your single point of contact for sanction, disbursement and any grievance about the loan.

How much benefit does the scheme provide?

The scheme lends up to 90% of the project cost, capped at Rs 27 lakh for a project costing up to Rs 30 lakh. The beneficiary interest rate depends on the loan size: 4% per annum for loans up to Rs 7.5 lakh, 6% for above Rs 7.5 lakh and up to Rs 15 lakh, and 7% for above Rs 15 lakh and up to Rs 30 lakh. Women beneficiaries receive a 1% rebate on these rates. Repayment is in quarterly instalments over a maximum of 10 years, including a six-month moratorium before instalments begin.

Help and where to apply

• NSKFDC toll-free: 1800-11-3203
• Official website: nskfdc.nic.in
• Apply through: your State Channelising Agency, Regional Rural Bank or a nationalised bank

Because the loan is delivered through state agencies and banks, the exact application form and the list of approved green activities can vary. Confirm the current terms and the list of eligible projects with your channelising agency before you invest in equipment.