Bank Loan Processing Fee Reimbursement Scheme

Description
The Ministry of Micro, Small & Medium Enterprises MSME has established the Bank Loan Processing Fee Reimbursement Scheme. This scheme functions as a sub-component of the broader National Scheduled Caste and Scheduled Tribe Hub NSSH program. The Bank Loan Processing Fee Reimbursement Scheme provides crucial financial assistance by reimbursing a substantial portion of the processing fees charged by financial institutions FIs when SC/ST MSEs secure business loans. This includes loans supported by both fund-based and non-fund-based limits. By alleviating the upfront financial burden of loan processing fees, the scheme aims to: - Enhance access to capital for SC/ST MSEs : By reducing the initial cost of securing a loan, the scheme encourages SC/ST entrepreneurs to pursue their business aspirations.- Promote inclusive economic development: This targeted initiative fosters the growth and success of SC/ST-owned businesses, contributing to a more equitable and diversified economy.- Strengthen entrepreneurial ecosystems: By simplifying the loan application process for SC/ST MSEs, the scheme fosters a more supportive environment for their entrepreneurial endeavors

Benefits
• Reimbursement of Bank Loan Processing Fee is limited to 80% of the fee or ₹ 1,00,000/- (excluding GST and other applicable taxes).

Eligibility Criteria
1. Applicant should belong to the Scheduled Caste / Scheduled Tribe category.
2. He/she should represent/own any MSEs unit.
3. MSEs availing loans from any Scheduled Commercial Banks, Non-Banking Finance Companies (NBFCs), and State Finance Corporations will be considered under the scheme

Application Process
Step 1: Applicant need to visit the official website https://www.scsthub.in.
For registration click on sign-up and provide the following details
For login click on login.
After login complete the required information.
Online

Applicant need to visit the official website https://www.scsthub.in.
For registration click on sign-up and provide the following details
For login click on login.
After login complete the required information.

Required Documents
• Self-certified copy of Udyam Registration (UR) & GST (if applicable).
• Self-certified copy of PAN Card in case of proprietorship, PAN card of SC/ST proprietor ought to be submitted.
• Copy of Caste Certificate of proprietor/ all partners/ directors.
• Details of shareholding in case of partnership / Pvt. Ltd / LLP firm. In case of partnership concerns, shareholding of the enterprise would be required to ascertain status of the MSE as SC/ST MSE (shareholding of SC/ST entrepreneur to be > 51%). Copy of Partnership Deed for Partnership Firm / Memorandum and Article of Association in case of LLP/Private Limited Company are required.
• Bank attested (signature with stamp) debit statement with Bank Loan Processing Fee charges mentioning Loan number and applicant MSE's name/valid payment receipt/ original receipt of bank loan processing fee paid by the applicant/ system generated GST Invoice, etc.
• Business loan availment certificate/ disbursement certificate/bank statement substantiating the fact that business loans have been availed.
• Bank attested (signature with stamp) copy of loan sanction letter.
• Cancelled Cheque of the current account of the enterprise from which Bank loan processing charges have been debited.
• Proof of transferred amount as reimbursement by NSSHO/ NSIC through PFMS under the scheme, where any such assistance is availed earlier within the same financial year.

Frequently Asked Questions
Q: What is Bank loan processing fee Reumbursement Scheme ?
A: The Bank Loan Processing Fee Reimbursement Scheme comes under the purview of the Ministry of Micro, Small and Medium Enterprises (MSME) of the Government of India.

Q: What are the scheme benefits ?
A: The assistance under this scheme for reimbursement of Bank Loan Processing Fee is limited to 80% of the fee or Rs. 1,00,000 (excluding GST and other applicable taxes) whichever is less. The benefits under the scheme can be availed only after disbursement of business loans in a financial year.

Q: Who can get the scheme benefits ?
A: 1. Applicant should belong to the Scheduled Caste / Scheduled Tribe category.
2. He/she should represent/own any MSEs unit.
3. MSEs availing loans from any Scheduled Commercial Banks, Non-Banking Finance Companies (NBFCs), and State Finance Corporations will be considered under the scheme.

Q: Is there a limitation on availing the benefits of this scheme?
A: No. The benefits can be availed multiple times in a financial year by SC/ST MSEs, but the financial assistance shall be restricted to the ceiling which is Rs. 1,00,000 (excluding GST and other applicable taxes)

Q: What kind of loans are eligible for benefits under the scheme?
A: SC/ST MSEs who avail loans from any Scheduled Commercial Banks, Non-Banking Finance Companies (NBFCs) and State Finance Corporations may be considered under the Scheme where loan processing fee is charged by such banks/NBFCs/State Finance Corporations.

Q: Is there a limitation on availing the benefits of this scheme?
A: No. The benefits can be availed multiple times in a financial year by SC/ST MSEs, but the financial assistance shall be restricted to the ceiling which is Rs. 1,00,000 (excluding GST and other applicable taxes).

Q: What kind of loans are eligible for benefits under the scheme?
A: SC/ST MSEs who avail loans from any Scheduled Commercial Banks, Non-Banking Finance Companies (NBFCs) and State Finance Corporations may be considered under the Scheme where loan processing fee is charged by such banks/NBFCs/State Finance Corporations.

Q: How should I apply to avail benefit under the scheme?
A: You may apply online on National SC-ST website www.scsthub.in or visit the nearest CSC-VLEs to apply online.

Q: Whether I can club this scheme benefit with another scheme?
A: Clubbing this scheme with any other scheme is not permitted. Any SC-ST MSE availing reimbursement under this scheme can not avail reimbursement of bank loan processing fees, from any other scheme of government or private agencies.