Bank Loan Processing Reimbursement Scheme
National SC-ST Hub · Central government
Reimburses 80% of bank loan processing fees, up to ₹1,00,000, for MSEs owned by SC/ST entrepreneurs.
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 loan processing costs for Micro and Small Enterprises (MSEs) owned by individuals from Scheduled Castes and Scheduled Tribes. Reimbursement covers up to 80% of the processing charges, subject to a ceiling of ₹1,00,000 (excluding GST and taxes), whichever is lower. This reduces the out-of-pocket expense for SC/ST entrepreneurs when securing business finance.
**Required Documents:** - Self-certified copy of Udyam Registration (UR) and GST certificate, if applicable. - Self-certified copy of the PAN card. - Copy of the caste certificate for the proprietor, all partners, or all directors. - Shareholding details (for Partnership, Pvt Ltd, or LLP firms) showing the SC/ST entrepreneur holds more than 51%. - Bank-attested debit statement or a valid receipt for the loan processing fee paid. - Proof that the business loan has been disbursed. - Bank-attested copy of the loan sanction letter. - A cancelled cheque from the enterprise's current account.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Required
- DPIIT startup recognition
- Not required
- GST registration
- Not specified
- Where the business may be based
- Not restricted
- MSEs with Udyam Registration. - Majority shareholding (>51%) held by Scheduled Caste (SC) or Scheduled Tribe (ST) entrepreneurs. - Must have availed a business loan. - Must have paid the corresponding processing fees.
How to apply
- Compile the necessary paperwork: Udyam Registration certificate, PAN card, caste certificate, evidence of shareholding where Scheduled Caste or Scheduled Tribe members hold more than 51%, a bank-attested debit statement or receipt for loan processing charges, documentation confirming loan release, the loan sanction letter, and a cancelled cheque from the enterprise’s current account. - Go to the National SC-ST Hub scheme portal, accessible at scsthub.in/nssh-schemes. - File the application, attaching all documents that are self-certified and bank-attested as required. - The National SC-ST Hub office then assesses the submission to verify eligibility and ensure all paperwork is complete. - Once approved, the reimbursement is transferred straight into the current account of the enterprise.
Frequently asked questions
Who is eligible for this scheme?
MSEs registered under Udyam, with SC/ST entrepreneurs holding over 51% shareholding, are eligible if they have taken a business loan and paid the associated processing fees.
How much reimbursement can I receive?
You can claim 80% of the bank loan processing fees you actually paid, up to a maximum of ₹1,00,000, excluding GST and other taxes. The lower of these two amounts will be reimbursed.
Do I need Udyam Registration to apply?
Yes. A self-certified copy of Udyam Registration is mandatory, and GST registration is required where applicable.
What documents do I need to submit?
You need the Udyam Registration copy, PAN card, caste certificate of the proprietor/partners/directors, and shareholding details showing over 51% SC/ST ownership. Also required are a bank-attested debit statement or receipt for the loan processing fee, proof of loan disbursement, the loan sanction letter, and a cancelled cheque of the enterprise's current account.
Is this scheme available on an ongoing basis?
Yes, this is a rolling scheme administered by the National SC-ST Hub, with applications accepted whenever eligible enterprises incur loan processing charges.
Is this a loan or a grant?
This is a reimbursement subsidy, not a loan, so you are not required to repay the amount and no equity is taken. It simply refunds a portion of the processing fees you already paid to obtain a business loan.
Sectors
- Scst Founders
- Reimbursement
- Loan Processing Fee
- Msme
Details last verified on 7 September 2026. Source: the issuer's published information.