Bank Guarantee Charges Reimbursement Scheme
National SC-ST Hub · Central government
Reimburses up to ₹1,00,000 (or 80%) of Performance Bank Guarantee charges for SC/ST-owned MSEs in government tenders.
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 scheme reimburses 80% of Performance Bank Guarantee (PBG) charges paid by SC/ST MSEs, or Rs. 1,00,000 (excluding GST and other applicable taxes), whichever is lower. This applies to PBGs taken for participation in tenders issued by Central or State Governments and Public Sector Enterprises (PSEs).
**Documents to be submitted:**
* Self-certified copy of Udyam Registration and GST certificate (if applicable). * Self-certified copy of PAN card. For proprietorships, the PAN card of the SC/ST proprietor is required. * Copy of the Caste Certificate of all promoters. * Shareholding details for partnership, Pvt. Ltd, or LLP firms. For partnerships, the SC/ST entrepreneur must hold more than 51% share. A copy of the Partnership Deed or Memorandum and Articles of Association is needed. * Bank-attested debit statement showing PBG charges, with the Bank Guarantee number and the applicant MSE's name. * Bank-attested and stamped copy of the PBG issued by the bank. * Cancelled cheque of the enterprise's current account from which the bank charges were debited. * Proof of any prior reimbursement received from NSSHO/NSIC under this scheme within the same financial year. * Supply Order, Purchase Order, or Work Order from the government entity against which the PBG was obtained, stating the PBG requirement.
Who can apply
- Eligible business forms
- Sole proprietorship, Partnership firm, Private limited company, Limited liability partnership
- Udyam registration
- Not specified
- MSME registration
- Required
- DPIIT startup recognition
- Not required
- GST registration
- Not specified
- Where the business may be based
- Not restricted
- At least 51% shareholding by SC/ST entrepreneurs. - Must be a Micro or Small Enterprise (MSE). - Must hold Udyam Registration. - Applying for reimbursement of Performance Bank Guarantee charges. - Charges must be incurred for tenders from Central/State Government or Public Sector Enterprises.
How to apply
- Ensure your MSE holds a valid Udyam Registration, with SC/ST entrepreneurs owning more than 51% of the enterprise. - Secure a Performance Bank Guarantee from your bank to meet the requirement for government or PSE tenders. - Assemble the necessary paperwork: Udyam Registration and PAN copies, caste certificates, proof of shareholding, a bank-attested debit statement reflecting PBG charges, a bank-attested copy of the PBG, the Supply/Purchase/Work Order issued by the government entity, and a cancelled cheque. - Go to the National SC-ST Hub scheme portal at scsthub.in/nssh-schemes. - File your application, attaching all documents that are self-certified and bank-attested as per the guidelines. - The National SC-ST Hub assesses the application to verify eligibility and ensure all documents are complete. - Once approved, the reimbursement is credited to the enterprise's current account.
Frequently asked questions
Who is eligible for this scheme?
MSEs registered under Udyam, where SC/ST entrepreneurs hold more than 51% shareholding, are eligible if they have paid Performance Bank Guarantee (PBG) charges to bid in tenders floated by Central/State Governments or Public Sector Enterprises (PSEs).
How much reimbursement can I claim?
You can claim a refund of 80% of the Performance Bank Guarantee charges you paid, or up to ₹1,00,000 (excluding GST and other taxes), whichever amount is lower.
What is a Performance Bank Guarantee and when is it needed?
A Performance Bank Guarantee (PBG) is a bank-issued security on behalf of a business to a government or PSE buyer, ensuring contract performance. This scheme reimburses a portion of the fee banks charge for issuing the PBG.
What documents are required?
To apply, you must submit Udyam Registration, GST copy, PAN card, caste certificates of all promoters, and shareholding details (Partnership Deed or MOA/AOA) showing over 51% SC/ST ownership. Also required are a bank-attested debit statement mentioning PBG charges and the Bank Guarantee number, a bank-attested copy of the PBG, a cancelled cheque, and the Supply/Purchase/Work Order from the government entity.
Can I apply multiple times in a financial year?
Reimbursement under the scheme is permitted within a financial year, provided you submit evidence of any earlier reimbursement already received from NSSHO/NSIC under the same scheme that year. Multiple claims may be made, but they are subject to the overall cap.
Is this a loan or a grant?
This is a reimbursement subsidy that does not require repayment, and no equity stake is taken in your enterprise.
Sectors
- Scst Founders
- Reimbursement
- Government Tenders
- Bank Guarantee
- Msme
- Subsidy
Details last verified on 7 September 2026. Source: the issuer's published information.