AI SummaryTerm Loan Scheme is a financial support scheme run by the Department of Social Justice and Special Assistance, Government of Maharashtra, to help economically weak families of the Charmakar community start or grow their own business. The scheme is funded by the National Scheduled Castes Finance and Development Corporation (NSFDC) and is still open for eligible applicants in 2026. It supports self-employment and small business work for people from the Dhor, Chambhar, Holar and Mochi groups.
Under this scheme, the Sant Rohidas Leather Industries and Charmakar Development Corporation (LIDCOM) gives term loans of between ₹1,00,000 and ₹5,00,000 to eligible people of the Charmakar community. The money can be used for many business activities, including making leather goods and footwear, which can then be supplied to government departments or sold in the open market. The scheme is designed to give the community a steady source of income and a better place in society.
Term Loan Scheme - Introduction
Term Loan Scheme is run by the Department of Social Justice and Special Assistance, Government of Maharashtra, and funded by NSFDC. It is implemented through LIDCOM, the Sant Rohidas Leather Industries and Charmakar Development Corporation. The main aim is to give the Charmakar community easy access to money so they can set up or expand small businesses instead of depending on daily wage work.
The scheme encourages the production of leather goods and footwear, and allows eligible people to supply these items to government departments or sell them in the open market. Along with the loan, the scheme provides a seed loan and a fixed subsidy, which together reduce the money burden on the borrower. This makes it easier for a person to start a business even with limited savings of their own.
Key Information
| Key Attribute | Details |
|---|---|
| Scheme Name | Term Loan Scheme |
| Beneficiary State | Maharashtra |
| Target Audience | Charmakar community (Dhor, Chambhar, Holar, Mochi) |
| Focus Areas | Business, Entrepreneurship, Banking |
| Benefit Type | Cash Support (Loan and Subsidy) |
| Nodal Department | Social Justice and Special Assistance Department |
| Implementing Agency | LIDCOM (Sant Rohidas Leather Industries and Charmakar Development Corporation) |
Benefits
This scheme offers complete money help to establish or grow a business. The cost of the project is shared between the corporation, the subsidy and the borrower, so the borrower does not have to arrange the full amount on their own.
Loan and Financing Structure:
| Component | Percentage / Amount |
|---|---|
| NSFDC Finance | 75% of project cost |
| Seed Loan | 20% of project cost |
| Subsidy | ₹10,000 |
| Beneficiary Contribution | 5% of project cost |
Loan Range: NSFDC provides term loans starting from ₹1,00,000 up to ₹5,00,000 for different business projects, with separate provisions for vehicle loans.
Interest Rates:
- For loans up to ₹5,00,000, NSFDC charges 7% interest per year, while the corporation charges 4% on the seed loan.
- The ₹10,000 subsidy is given as direct support, which lowers the total cost of the project for the borrower.
Repayment: The loan is repaid in monthly installments over a period of up to 60 months, which keeps the monthly burden light for the borrower.
Eligibility
To get the benefit of this scheme, the applicant must meet the following conditions:
- The applicant should be a permanent resident of Maharashtra.
- The applicant should belong to the Charmakar community, such as Dhor, Chambhar, Holar or Mochi.
- The applicant should be between 18 and 50 years of age.
- The applicant should have a valid Income and Caste Certificate issued by an authorized government officer.
- The applicant should have the required knowledge of the business activity for which the money is being taken.
- For NSFDC support, the annual family income should be below ₹98,000 for rural areas or ₹1,20,000 for urban areas.
Application Process
Follow these steps to apply for the scheme:
STEP 1 - Visit the district office of the Leather Industries Development Corporation of Maharashtra (LIDCOM) during official office hours. You can also check the official LIDCOM website for the nearest office and contact details.
STEP 2 - Ask the concerned authority for the official application form of the Term Loan Scheme.
STEP 3 - Fill in all the required information clearly, attach a recent passport-sized photograph, and include copies of all the necessary documents.
STEP 4 - Submit the completed application to the authority and make sure you collect a receipt. This receipt is the proof of submission and often carries a unique identification number that can be used to track the application status.
Documents
Keep the following documents ready before applying:
- Aadhaar Card.
- Caste Certificate.
- Annual Income Certificate.
- Ration Card.
- Passport-sized photographs of the applicant and spouse.
- Bank Passbook details.
- A detailed Project Report for the business.
- Related loan documents.
References
Term Loan Scheme - Official LIDCOM Page
FAQ's
What is Term Loan Scheme?
Term Loan Scheme provides money support to economically weak members of the Charmakar community to start or expand their business activities in Maharashtra.
Who is eligible to apply?
Applicants must belong to the Charmakar community, live permanently in Maharashtra, be between 18 and 50 years of age, and meet the set family income limits.
What is the maximum loan amount?
NSFDC provides term loans ranging from ₹1,00,000 up to ₹5,00,000 for different business development projects under this scheme.
What are the applicable interest rates?
For loans up to ₹5,00,000, NSFDC charges 7% interest per year and the corporation charges 4% on the seed loan.
How is the project funding structured?
The project cost is shared as 75% via NSFDC loan, 20% as a seed loan from the corporation, a ₹10,000 subsidy, and a 5% personal contribution from the applicant.
What is the repayment timeline?
The loan is repaid in monthly installments over a maximum period of 60 months.
Does the scheme support leather production?
Yes, the scheme supports many business activities, including footwear manufacturing and general leather goods production.
Do I need to be a Maharashtra resident?
Yes, permanent residency in Maharashtra is a required condition for all applicants.