Loan Based Schemes For Safai Karamchari - General Term Loan (GTL)

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This topic of “Loan Based Schemes For Safai Karamchari – General Term Loan (GTL)” is important from the perspective of the UPSC IAS Examination, which falls under General Studies Portion.

Introduction

General Term Loan (GTL) Scheme by Ministry of Social Justice and Empowerment
For Safai Karamcharis, Manual Scavengers, and their dependents aged 18 years and above
Loan provided for viable income generating schemes including sanitation-related activities

Ministry/Agency

Ministry of Social Justice and Empowerment
National Safai Karamcharis Finance and Development Corporation (NSKFDC)

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Objectives

To provide financial assistance for income-generating schemes including sanitation-related activities
To uplift the socio-economic conditions of Safai Karamcharis and Manual Scavengers

Benefits

Term loan up to 90% of the unit cost with a maximum unit cost of Rs.15.00 lacs
Interest rate of 6%
Repayment period of up to 10 years
Assistance provided for any viable income generating schemes including sanitation-related activities

Eligibility

Safai Karamcharis (including Wastepickers), identified Manual Scavengers and their dependents
Registered co-operative societies of the target group
Legally constituted association/firm promoted by the target group
Persons who produce a certificate from local Revenue Officer/local Municipal Officer/Cantonment Executive Officer/Railway Officer, Head of the Govt. Departments, Elected Members of Municipal Body, Pradhan of Gram Panchayats and Regional Managers of Regional Rural Banks (RRBs)/Public Sector Banks (PSBs)
Persons identified as Manual Scavenger in a survey and in the final list of Manual Scavengers prepared by State Governments/Union Territory Administration

Implementation Strategy

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
Promoter’s contribution is not insisted upon for projects costing up to Rs.2.00 lac
For projects costing more than Rs.2.00 lac, the minimum promoter’s contribution insisted by NSKFDC from the beneficiaries is 5%