The Ministry of Social Justice & Empowerment has highlighted the work of the National Safai Karamcharis Finance & Development Corporation (NSKFDC), a government body that provides loans and training to sanitation workers across India. Since starting operations, the corporation has distributed over Rs. 3,365 crore in concessional loans to help more than 6.10 lakh people from this community set up their own income-generating businesses.
Loan Amounts and Terms
Individual sanitation workers, waste pickers, manual scavengers and their dependents can access loans of up to Rs. 30 lakh. Groups of beneficiaries can borrow up to Rs. 75 lakh. These loans carry interest rates between 6 and 9 per cent per annum, with repayment periods ranging from three to ten years depending on the loan size and scheme rules.
Women borrowers receive a 1 per cent reduction in the interest rate. An additional 0.5 per cent rebate is available to those who pay their instalments on time, as per scheme guidelines.
The loans are distributed through State Channelizing Agencies nominated by state and union territory governments, along with Regional Rural Banks and Public Sector Banks.
Skills Training and Other Support
Beyond loans, NSKFDC runs programmes that do not involve borrowing. These include awareness sessions, workshops and skill-development courses to build capabilities among beneficiaries. The corporation also funds capacity-building initiatives to help people find safer work and build sustainable livelihoods.
The NSKFDC was established on 24 January 1997 and began operating from October 1997. Its stated goal is to eliminate manual scavenging and help sanitation workers and their families achieve economic independence and social dignity.
What this means for you
If you work in sanitation, waste collection or manual scavenging, you can apply through your state government’s channelizing agency for a low-interest loan to start a business. Women applicants and those with good payment records will pay less interest. Free skill-building programmes are also available to improve your job prospects and earning ability.