Loan based Scheme for Pay and Use Community Toilets

Description
The Pay and Use Community Toilets Scheme was launched by the Ministry of Social Justice and Empowerment, aims to empower Safai Karamcharis and their dependents through livelihood-linked sanitation entrepreneurship. It is a Loan Based Scheme implemented by the National Safai Karamcharis Finance and Development Corporation NSKFDC . The Loans are extended through Channelizing Agencies CAs i.e. State Channelizing Agencies SCAs , Regional Rural Banks RRBs and Public Sector Banks PSBs to the target group. The key objective of this scheme is to promote entrepreneurship among Safai Karamcharis, manual scavengers, and their dependents by providing financial assistance to set up “pay and use” community toilets. Purpose: 1. Provision of easy accessibility of the community latrines to the households not having any such facilities in their houses and for floating population in public places with high footfall e.g. bus stands, railway stations, markets etc. 1. To ensure proper maintenance of the facilities. 1. To prevent the necessity of manual scavenging. Key Features: 1. Loan for Construction & Operation: Financial assistance is provided to build and operate 10-seater community toilet units on a pay-and-use basis. 1. Maximum Loan Amount: Up to ₹25 lakh for one unit. 1. Interest Rates: 4% per annum; 3% for women beneficiaries; 2.5% for timely repayment. 1. Repayment Period: Up to 10 years, including 6 months moratorium on principal repayment.

Exclusions
• Individuals who are not Safai Karamcharis, manual scavengers, or their dependents are not eligible for this scheme.
• The scheme provides loans, not grants or subsidies.
• Construction of private or home toilets is not allowed under this scheme.
• The maximum loan cap is ₹25 lakh. Any additional cost beyond this has to be borne by the beneficiary.

Definitions
Target group
Safai Karamcharis (including Wastepickers), Manual Scavengers and their dependants constitute the target group.
(Source: Scheme guideline)

Safai Karamchari
“Safai Karamchari” means a person, including his/her dependants, engaged in or employed for any sanitation work and includes waste pickers, but excludes domestic worker and manual scavengers.
(Source: Scheme Guideline)

Manual Scavengers
A person engaged or employed by an individual or a local authority or an agency or a contractor for manually cleaning, carrying, disposing of, or otherwise handling in any manner, human excreta in an insanitary latrine or in an open drain or pit into which the human excreta from the insanitary latrines is disposed of, or on railway track or in such other spaces or premises, as the Central Government or a State Government may notify, before the excreta fully decomposes in such a manner as may be prescribed, and the expression ‘’Manual Scavenging” shall be construed accordingly and a) “engaged or employed’’ means being engaged or employed on a regular or contract basis; b) a person engaged or employed to clean excreta with the help of such devices and using such protective gear, as the Central Government may notify in this behalf, shall not be deemed to be a ‘manual scavenger’.
(Source: Scheme Guideline)

Dependent
“Dependant” in relation to a Safai Karamcharis (including Wastepickers), Manual Scavengers includes a member of his family, who is dependent on him/her and has attained the age of 18 years & above for the purpose of financial assistance and for Skill Development Training Programme the age limit is 18 years to 45 years.
(Source: Scheme Guideline)

Benefits
• **Livelihood:** Enables Safai Karamcharis to shift from manual scavenging to a respectable, income-generating sanitation business. 1. **Collateral-Free, Low-Interest Loan:** Offers up to ₹25 lakh without collateral, at just 4% interest (even lower for women and timely repayment). 1. **Moratorium period:** Six Months in addition to implementation period of six months. 1. **Repayment period:** 10 Years after implementation period of 180 days and moratorium of 180 days 1. **Entrepreneurship Opportunity:** Encourages self-employment by allowing beneficiaries to construct and operate public “Pay and Use” toilet units.

Eligibility Criteria
1. Indian citizens aged 18 years or above are eligible belonging to the category of:
2. Safai Karamcharis
3. Manual scavengers
4. Dependents of the above groups
5. Individual beneficiaries/ self-help groups from the target group of NSKFDC, through State Channelizing Agencies (SCAs), in collaboration with reputed organizations are eligible to apply for the scheme.
6. <br>
7. **Note:**
8. Scavenger/Safai Karamchari and their dependents duly identified under the National Scheme for Liberation & Rehabilitation of Scavengers (NSLRS) in a survey/registered co-operative societies of Safai Karamcharis/legally constituted association/firm promoted by the target group and also all those who produce a certificate from local Revenue Officer/local Municipal Officer/Cantonment Executive Officer/Railway Officer, Head of the Govt. Departments (i.e. Schools, Colleges, Forest, Health, Education, Animal Husbandry) having rank not less than Gazetted Officer, Elected Members of Municipal Body & Pradhan of Gram Panchayats for which the State Govt. is required to issue necessary notification, Regional Managers of the Regional Rural Banks/Nationalised Banks.
9. However, under the MS Act, 2013, a person identified as Manual Scavenger in a survey need not to provide any certificate once his/her name appeared in the final list of Manual Scavengers prepared by State/UT Governments.

Required Documents
• Proof of identity (e.g., Aadhaar card, voter ID).
• Proof of age (e.g., birth certificate, school certificate).
• Project proposal detailing the plan for the Pay & Use Community Toilet.
• Proof of occupation as a Safai Karamchari or manual scavenger (if applicable).
• Any other documents as specified by the Channelizing Agency.​

Frequently Asked Questions
Q: Who is eligible to apply for the scheme?
A: Safai Karamcharis, manual scavengers and their dependents are eligible. Applicants must be aged 18 years or above and belong to the target group defined under the scheme.

Q: What is the maximum financial assistance available under the scheme?
A: A maximum loan of ₹25 lakh is available for setting up Pay and Use Community Toilets, including construction, operation, and maintenance.

Q: What is the rate of interest on the loan?
A: The standard interest rate is 8% per annum. However:

1. Women beneficiaries get a 1% rebate.
1. A 0.5% rebate is provided for timely repayment.

Q: What is the repayment period for the loan?
A: The loan is to be repaid in 10 years, which includes:

1. A 180-day moratorium period after implementation.
1. A 180-day implementation period after loan sanction.

Q: How can one apply for the scheme?
A: Applicants must approach the State Channelizing Agency (SCA) or other authorized partners like RRBs, PSBs, or NBFC-MFIs. A formal application with supporting documents must be submitted.

Q: Is collateral required to avail the loan?
A: Generally, no collateral is required for loans up to ₹1.25 lakh. For higher loan amounts, security norms may vary depending on the Channelizing Agency’s terms.

Q: Can groups like SHGs or cooperatives also apply?
A: Yes. In addition to individuals, Self-Help Groups (SHGs) and cooperative societies of eligible members can also apply under the scheme.