SC/ST Bank Guarantee Charges Refund
National SC-ST Hub · Central government
SC/ST MSEs can claim 80% of Performance Bank Guarantee bank charges, capped at Rs. 1,00,000 annually.
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
A Performance Bank Guarantee is typically required when a small supplier secures a government or corporate order, and the bank's charges for issuing it reduce the supplier's margin.
SC/ST-owned micro and small enterprises can recover these PBG charges through the National SC-ST Hub's competitiveness interventions. The claim covers 80% of the charges or Rs. 1,00,000, whichever is lower, excluding GST and other applicable taxes, for charges paid within a financial year.
The guarantee must have been issued in favour of a buyer department.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Required
- DPIIT startup recognition
- Not required
- GST registration
- Not specified
- Where the business may be based
- Not restricted
- Micro and Small Enterprises owned by SC/ST entrepreneurs - Bank charges must have been paid for the issuance of a Performance Bank Guarantee (PBG) - The PBG must have been issued in favour of a buyer department - The claim is limited to charges paid within the financial year
How to apply
1. Submit your application via the National SC-ST Hub scheme portal, available at https://www.scsthub.in/nssh-schemes/ 2. Have your SC/ST certificate and Udyam registration on hand before applying. 3. Include the Performance Bank Guarantee document, which must name the buyer department. 4. Include the bank's debit advice or receipt confirming payment of the PBG charges.
Frequently asked questions
What exactly is reimbursed?
For a Performance Bank Guarantee, the reimbursable bank charges are capped at 80% of the amount paid or Rs. 1,00,000, whichever is lower.
Are taxes included?
No — the amount eligible for reimbursement does not cover GST or any other applicable taxes.
Does the PBG have to be for a government buyer?
The guarantee has to be issued in favour of a buyer department.
How often can it be claimed?
The cap applies to PBG charges paid during a financial year.
Who can claim?
SC/ST-owned micro and small enterprises are eligible.
Sectors
- Scst
- Msme
- Reimbursement
- Bankguarantee
- Publicprocurement
- Nationalscsthub
Details last verified on 18 September 2026. Source: the issuer's published information.