Bank Loan Processing Fee Reimbursement Scheme

The Bank Loan Processing Fee Reimbursement Scheme helps SC and ST entrepreneurs save money on business loans by paying back most of the bank processing charges. The scheme gives back 80 percent of the fee or up to ₹1,00,000, whichever comes to less. This support works through the National Scheduled Caste and Scheduled Tribe Hub program run by the Ministry of Micro, Small and Medium Enterprises.

When you take a business loan from a bank or finance company, the processing fee can add up quickly. This scheme steps in to cover a big part of that cost so you can focus on growing your business instead of worrying about upfront fees. Both new businesses and existing ones can apply once they get their loan approved.

Bank Loan Processing Fee Reimbursement Scheme Details

Benefits

The main benefit is straightforward. You get 80 percent of your bank loan processing fee paid back. The total amount cannot go above ₹1,00,000. This figure does not include GST or other taxes that may apply. You can claim this help multiple times during one financial year, but the total payout stays within the ₹1,00,000 limit.

Eligibility

You can apply if you meet these conditions:

• You belong to the Scheduled Caste or Scheduled Tribe community.
• You own or run a Micro or Small Enterprise registered under MSME rules.
• Your business has taken a loan from a Scheduled Commercial Bank, an NBFC, or a State Finance Corporation.

The SC or ST ownership share must be at least 51 percent in case of partnership firms, LLPs, or private limited companies. You need to show this through partnership deeds or memorandum of association documents.

Application Process

You need to apply through the online portal to get your reimbursement processed.

STEP 1 - Go to the official NSSH website at scsthub.in and click on the sign-up option to create your account. Enter your full name, email address, mobile number, and set a password.

STEP 2 - Log in using your credentials and fill in the required details for the Bank Loan Processing Fee Reimbursement Scheme.

STEP 3 - Upload all the required documents listed below and submit your application form.

Required Documents

Gather these papers before starting your application:

• Self-certified copy of Udyam Registration and GST certificate (if applicable).
• Self-certified PAN card copy. For proprietorship, the SC/ST proprietor's PAN card is needed.
• Caste certificate of the proprietor, all partners, or directors.
• Shareholding proof such as Partnership Deed or Memorandum of Association showing SC/ST ownership above 51 percent.
• Bank attested debit statement or original payment receipt showing the processing fee charged.
• Disbursement certificate or bank statement proving the loan was received.
• Bank attested copy of the loan sanction letter.
• Cancelled cheque from the enterprise current account where fees were debited.
• Proof of any previous reimbursement received under this scheme in the same financial year.

References

Read Official Guidelines

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FAQ's

What is the Bank Loan Processing Fee Reimbursement Scheme?

This is an MSME ministry scheme that refunds a large portion of bank loan processing fees for SC and ST entrepreneurs. It reduces the initial cost of getting a business loan.

How much reimbursement will I receive?

You get 80 percent of the processing fee back, capped at ₹1,00,000. The amount excludes GST and other taxes.

Can I apply more than once?

Yes, you can apply multiple times in a single financial year. The total reimbursement across all claims cannot exceed ₹1,00,000.

Can I use this scheme along with other government schemes?

No, you cannot combine this benefit with any other scheme. If you claim reimbursement here, you cannot claim the same processing fee refund from another government or private source.

Who processes my application?

Applications are handled through the National SC-ST Hub portal at scsthub.in. You can also visit a nearby CSC-VLE center for help with the online application.