Back to Schemes
Banking,Financial Services and Insurance; Social welfare & Empowerment; Utility & Sanitation

Loan based Scheme for Pay and Use Community Toilets

The “Pay and Use” Community Toilets Scheme under Swachhta Udyami Yojana by NSKFDC offers concessional loans to Safai Karamcharis and their dependents for setting up public toilet units, promoting sanitation, livelihood, and dignity.

Authority

Central

Region

Central Government

Status

Verified 2026

Updated

March 2026

What you get

- 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.

Who can apply

Safai Karamcharis; Manual scavengers; Dependents of the above groups; 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.; 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 Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

Who is eligible to apply for the scheme?

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.

What is the maximum financial assistance available under the scheme?

A maximum loan of ₹25 lakh is available for setting up Pay and Use Community Toilets, including construction, operation, and maintenance.

What is the rate of interest on the loan?

The standard interest rate is 8% per annum. However: | - Women beneficiaries get a 1% rebate. | - A 0.5% rebate is provided for timely repayment.

What is the repayment period for the loan?

The loan is to be repaid in 10 years, which includes: | - A 180-day moratorium period after implementation. | - A 180-day implementation period after loan sanction.

How can one apply for the scheme?

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.

Is collateral required to avail the loan?

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.

Can groups like SHGs or cooperatives also apply?

Yes. In addition to individuals, Self-Help Groups (SHGs) and cooperative societies of eligible members can also apply under the scheme.