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, an initiative 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. Coverage extends to both fund-based and non-fund-based loans, with the objective of improving access to institutional credit for SC/ST Micro and Small Enterprises (MSEs).
By reducing the upfront cost of securing business finance, the scheme supports the operation and expansion of SC/ST-owned enterprises. It is intended to promote inclusive economic growth by giving these entrepreneurs equitable access to capital for starting and scaling ventures. The mechanism also contributes to self-employment and wealth generation within SC/ST communities, in line with broader national goals of socio-economic advancement.
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 be from 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. - The MSE must have availed a business loan from any Scheduled Commercial Bank, Non-Banking Finance Company (NBFC), or State Finance Corporation. - Benefits apply only after the business loan is disbursed in a financial year. - The scheme cannot be combined with any other programme that reimburses the same bank loan processing fees.
How to apply
- **Step 1: Access the Portal**: Begin by visiting the official National SC-ST Hub website at www.scsthub.in, or approach the nearest Common Service Centre - Village Level Entrepreneur (CSC-VLE) to initiate the process. - **Step 2: Register**: Locate the relevant scheme, select the "Sign Up" option, and furnish fundamental information, including your name, email address, and mobile number. - **Step 3: Set a Password**: Choose a secure password to finalise your registration on the portal. - **Step 4: Log In**: Utilise the credentials you have just established to gain entry into the system. - **Step 5: Submit the Application**: Fill out the online form with precise details and upload the requisite supporting documents. After verifying that all fields are complete, submit the application for evaluation.
How applications are assessed
Reimbursement under the scheme is not determined through 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 adherence to the scheme’s eligibility criteria and for the completeness of the submitted documentation.
The review confirms that the claimant’s identity and the loan particulars match the scheme’s requirements. Once these checks are satisfied, 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?
The bank loan processing fee is reimbursed at the lower of 80% of the fee or ₹1,00,000, excluding GST and other applicable taxes. This benefit applies 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 taking 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 the National SC-ST Hub website (www.scsthub.in) or through the nearest CSC-VLE.
Whether I can club this scheme benefit with another scheme?
No. You cannot combine this with any other scheme—government or private—that reimburses bank loan processing fees.
Sectors
- Scst Entrepreneurs
- Msme
- Loan Processing Fee
- Reimbursement
- Inclusive Growth
Details last verified on 7 September 2026. Source: the issuer's published information.