Bank Loan Processing Fee Reimbursement Scheme
National SC-ST Hub · Central government
The National SC-ST Hub scheme reimburses up to 80% of bank loan processing fees (capped at ₹1,00,000) for SC/ST-owned Micro and Small Enterprises.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹1,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
The Bank Loan Processing Fee Reimbursement Scheme operates under the National SC-ST Hub programme of the Ministry of Micro, Small and Medium Enterprises (MSME). It reimburses a portion of the loan processing fees levied by financial institutions on Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs. Both fund-based and non-fund-based loans are covered, which lowers the cost of institutional credit for SC/ST Micro and Small Enterprises (MSEs).
By reducing the upfront expense of obtaining a business loan, the scheme supports the growth and continuity of SC/ST-owned enterprises. It aims to give these entrepreneurs equitable access to capital for starting, expanding, or running a business. The mechanism encourages self-employment and wealth creation within SC/ST communities, in line with broader objectives of socio-economic upliftment and entrepreneurial development across India.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Required
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Not restricted
- Applicant must belong to the Scheduled Caste (SC) or Scheduled Tribe (ST) category. - Applicant must own or represent a Micro or Small Enterprise (MSE). - For partnership, Private Limited, or LLP entities, the SC/ST entrepreneur must hold more than 51% shareholding. - MSEs must have availed a business loan from any Scheduled Commercial Bank, Non-Banking Finance Company (NBFC), or State Finance Corporation. - Benefits are available only after the disbursement of the business loan in a financial year. - The scheme cannot be clubbed with any other program offering reimbursement for the same bank loan processing fees.
How to apply
- **Step 1: Access the Portal**: Begin by visiting the official National SC-ST Hub website (www.scsthub.in) or approach your nearest Common Service Centre - Village Level Entrepreneur (CSC-VLE) to initiate the process. - **Step 2: Register**: Locate the relevant scheme, select "Sign Up," and provide essential information including your name, email address, and mobile number. - **Step 3: Set Password**: Choose a secure password to finalise your registration on the portal. - **Step 4: Log In**: Enter your registered credentials to access your account. - **Step 5: Submit Application**: Fill out the online form with all required particulars and upload the supporting documents. After verifying the details, submit the application for evaluation.
How applications are assessed
Reimbursement under the scheme is not subject to a competitive selection process. Instead, eligible SC/ST MSEs submit a claim after their business loan has been disbursed by a recognised financial institution and the processing fee has been paid. The application is then checked for compliance with the scheme’s eligibility criteria and for completeness of the supporting documents.
The review confirms that the claimant and the loan particulars match the scheme’s provisions. Once this verification is complete, the reimbursement is processed.
Frequently asked questions
What is the "Bank Loan Processing Fee Reimbursement Scheme"?
The scheme falls under the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India, and covers reimbursement of bank loan processing fees for MSEs owned by SC/ST entrepreneurs.
What are the scheme benefits?
Reimbursement of the bank loan processing fee is capped at the lower of 80% of the fee or ₹1,00,000, excluding GST and other applicable taxes. This benefit is available only after the business loan has been disbursed in a financial year.
Who can get the scheme benefits?
The applicant must belong to the Scheduled Caste or Scheduled Tribe category and own or represent a micro or small enterprise (MSE). Loans availed from any Scheduled Commercial Bank, NBFC, or State Finance Corporation are eligible for consideration.
Is there a limitation on availing the benefits of this scheme?
The number of times you can apply is uncapped, but total financial assistance in a financial year is limited to ₹1,00,000, excluding GST and other applicable taxes.
What kind of loans are eligible for benefits under the scheme?
SC/ST MSEs that take loans from Scheduled Commercial Banks, NBFCs, or State Finance Corporations, where a loan processing fee applies, are eligible.
How should I apply to avail benefit under the scheme?
Apply online at www.scsthub.in, the National SC-ST Hub website, or visit your nearest CSC-VLE.
Whether I can club this scheme benefit with another scheme?
No, you cannot combine this scheme with any other government or private programme that reimburses bank loan processing fees.
Sectors
- Scst Entrepreneurs
- Msme
- Loan Processing Fee
- Reimbursement
- Inclusive Growth
Details last verified on 3 August 2026. Source: the issuer's published information.