AI SummaryMicro Credit Finance (NSFDC) offers small loans to Scheduled Caste individuals and groups for setting up income-generating business units. National Scheduled Castes Finance and Development Corporation (NSFDC) manages this scheme under Ministry of Social Justice and Empowerment, and applications remain open for the 2026-27 financial year.
Under this scheme, loan is available for business units costing up to ₹1,40,000. NSFDC funds up to 90% of the project cost, with a maximum loan of ₹1.25 lakh per unit. Loan seekers pay a low interest of 6.5% per annum, and the amount has to be repaid in quarterly installments within three years.
Micro Credit Finance (NSFDC) - Introduction
Micro Credit Finance is a supportive scheme made for members of Scheduled Caste community who want to start a small business but do not have enough capital of their own. The loan can be used for small activities like running a tea stall, setting up a tailoring shop, opening a beauty parlour, repairing cycles, selling vegetables, rearing milch animals, or making products like papads, pickles, candles and incense sticks.
Applications for this loan are accepted through State Channelizing Agencies (SCAs), authorized banks and partner institutions. As of August 2026, eligible applicants can also start their application online through the PM SURAJ portal. The scheme keeps the paperwork simple and the interest rate low so that small business owners can grow their work without heavy loan burden.
| Detail | Information |
|---|---|
| Scheme Name | Micro Credit Finance (NSFDC) |
| Level | Central Government |
| Ministry | Ministry of Social Justice and Empowerment |
| Implementing Agency | National Scheduled Castes Finance and Development Corporation (NSFDC) |
| Eligible People | Scheduled Caste individuals, Self-Help Groups and Joint Liability Groups |
| Maximum Loan | Up to 90% of project cost, capped at ₹1.25 lakh |
| Interest Rate | 6.5% per annum for loan seekers |
| Repayment Period | Three years in quarterly installments |
| Application Mode | Offline through SCA and online through PM SURAJ portal |
| Official Website | nsfdc.nic.in |
Benefits
The scheme is built to keep the loan burden light for small business owners. The financial support structure for 2026-27 remains as per NSFDC guidelines:
| Parameter | Benefit |
|---|---|
| Maximum Loan Amount | Up to 90% of project cost, capped at ₹1.25 lakh |
| Interest Rate | 6.5% per annum for loan seekers |
| Repayment Period | Within three years in quarterly installments |
| Moratorium Period | 3 months included in the repayment tenure |
| Unit Cost Limit | Up to ₹1.40 lakh |
Take an example of a small papad making unit costing ₹1.20 lakh. The loan covers up to 90% of this amount, so the borrower only needs to arrange a small share from own pocket. With 6.5% interest and a 3-month grace period, the first repayments stay easy.
Eligibility
Eligibility rules for Micro Credit Finance (NSFDC) are simple and apply to individuals as well as groups. Applicants should belong to a Scheduled Caste community and the family income should stay within the limit set by NSFDC.
- Applicant must belong to a Scheduled Caste community.
- Total annual family income should be up to ₹5,00,000 as per the latest NSFDC norms.
- For a group, partnership firm or co-operative society, every member must belong to a Scheduled Caste community and meet the income limit.
The State Channelizing Agency checks and verifies all these details before forwarding the application.
Application Process
Micro Credit Finance (NSFDC) can be applied offline as well as online. Offline applications go through State Channelizing Agencies and partner banks, while online entry is available through PM SURAJ portal. Direct applications to NSFDC head office are not accepted.
STEP 1 - Visit the District Office of your State Channelizing Agency (SCA) or an authorized channelizing agency such as a Public Sector Bank or Regional Rural Bank. For the online option, open the PM SURAJ portal at pmsuraj.dosje.gov.in and register with your details.
STEP 2 - Download the loan application form from the official NSFDC forms page at nsfdc.nic.in/form and fill in personal and business details carefully.
STEP 3 - Collect the required documents including identity proof, income certificate, caste certificate, bank account details and a short project report of the business you plan to start.
STEP 4 - Submit the completed application and documents to the District Office of the SCA or to the partner bank branch. Online applicants should complete the form submission on the PM SURAJ portal.
STEP 5 - The agency checks the proposal, verifies the details and forwards viable applications to NSFDC head office for appraisal.
STEP 6 - Once the project is approved and sanctioned, an offer letter is issued. After the remaining formalities are done, the loan amount is sent to the agency, which then transfers it to your bank account.
Documents
Keep these documents ready before applying so that the checking process stays smooth:
- Recent passport-size photograph
- Aadhaar Card and other identity proof
- Valid income certificate showing annual family income
- Valid caste certificate
- Proof of residence
- Bank passbook or bank account details
- Business project report and any other papers asked by the agency
References
Use these official links for the latest scheme details, forms and updates:
- NSFDC Credit Schemes
- NSFDC Application Forms
- NSFDC FAQs
- Ministry of Social Justice and Empowerment - NSFDC Page
- PM SURAJ Portal
- Official Notification
FAQ's
What is Micro Credit Finance (NSFDC)?
Micro Credit Finance is a small loan scheme by NSFDC for Scheduled Caste individuals and groups. It funds business units costing up to ₹1.40 lakh.
Who is eligible for this loan?
Scheduled Caste individuals and groups whose annual family income is up to ₹5,00,000 as per the latest NSFDC norms are eligible.
What is the maximum loan amount?
NSFDC funds up to 90% of the project cost, with the loan capped at ₹1.25 lakh per unit.
What is the interest rate?
Loan seekers pay 6.5% per annum. NSFDC charges 2.5% from the State Channelizing Agency, which then adds the remaining margin while lending to the borrower.
How long do I have to repay the loan?
The loan is repaid within three years in quarterly installments. A 3-month moratorium period is included in this tenure.
Which activities are funded?
Any viable small income-generating activity like a tea stall, tailoring shop, beauty parlour, cycle repair, milch animal rearing, vegetable selling, papad and pickle making can be funded.
Can a society or group apply?
Yes. A partnership firm, co-operative society or group can apply if every member belongs to a Scheduled Caste community and meets the income limit.
Where should I submit the application?
Submit the form at the District Office of your State Channelizing Agency or an authorized partner bank. Online applications can be started on the PM SURAJ portal.
Can I apply directly to NSFDC head office?
No, direct applications to NSFDC head office are not accepted. Applications have to go through SCAs, partner banks or the PM SURAJ portal.
How is the loan amount disbursed?
After sanction, the amount is sent to the agency, which then transfers the money to the loan seeker's bank account.
What is the contact address for help?
NSFDC head office is at 14th Floor, SCOPE Minar, Core 1 and 2, Laxmi Nagar, Delhi 110092. Helpline number is 011-22054392.