🏦 Top 5 NGOs Providing Interest-Free Loans (₹50,000 – ₹5,00,000) Across India
Small business owners and micro-entrepreneurs often struggle to get formal credit. Interest-free or low-interest loans from NGOs can be a game-changer! Here are the top 5 NGOs in India supporting livelihoods with ₹50,000 to ₹5,00,000 loans—without charging any interest.
1. Udhyam Learning Foundation (Bengaluru)
The Udhyam Vyapaar program empowers micro-entrepreneurs with easy-to-repay interest-free loans—such as ₹10,000 repaid as ₹100 a day over 100 days. The NGO also offers business skills and digital training along with the loan (yourstory.com).
- Loan amount: ₹10,000 to ₹50,000
- Repayment: Daily instalments with flexible schedules
- Additional support: Financial literacy, digital tools, WhatsApp advisory groups
This model has funded tea-stalls, ironing services, and roadside vendors—helping more than 500 micro-businesses reset and thrive.
2. Calcutta Social Project (Kolkata)
When COVID-19 shut down informal traders, Calcutta Social Project intervened with interest-free loans of ₹2,000–₹10,000 to help them restart operations. Over 60 traders—including tea-sellers and vegetable vendors—have benefited, repaying on arrival of daily earnings (scribd.com, telegraphindia.com).
- Loan amount: ₹2,000–₹10,000
- Repayment: Flexible; repay as they earn
- Selection: Beneficiaries are vetted to ensure loan use is livelihood-centered
3. Entrepreneurs Associates (tEA) – Nagaland
In Kohima, Entrepreneurs Associates supports 20+ women street vendors with interest-free loans post-pandemic relief (eastmojo.com).
- Loan amount: ₹5,000–₹50,000 depending on business scale
- Impact: Helps women vendors rebuild livelihood with dignity
4. INFACC’s Sangamam NHG Network (Kerala)
Grassroots groups under INFACC, known as “Sangamam NHGs,” provide interest-free loans to rural women’s self-help groups. These typically support agriculture, small entrepreneurship, and local industries (loansinghana.com.ng, eastmojo.com, infacc.org).
- Loan amount: ₹50,000–₹2,00,000
- Repayment: Through group-managed savings and weekly meetings
- Support: Technical training, bookkeeping, group mentoring
5. National Handicapped Finance and Development Corporation (NHFDC)
NHFDC channels microfinance to NGOs that support persons with disabilities. NGOs can receive up to ₹5,00,000 at maximum 5% interest, and often extend interest-free support to end beneficiaries. There’s also a rebate for women and persons with disabilities (indiafilings.com).
- Loan amount to NGOs: Up to ₹5,00,000
- End-beneficiary loan: Up to ₹25,000 per individual
- Perks: Interest rebate of 1% for women, 0.5% for PWDs. NGOs also receive training grants.
✅ Why These Schemes Matter
| Benefit | Description |
|---|---|
| No or minimal interest | Reduces cost and enables sustainable repayments |
| Flexible repayment | Daily/weekly plans tied to income |
| Capacity building | Entrepreneurs gain training and mentorship |
| Promotes dignity | Loans restore self-reliance without charity stigma |
📌 How to Apply Top 5 NGOs Providing Interest-Free Loans Across India
- Udhyam Learning Foundation – Visit their Bengaluru centre or apply via their website with ID and business proof (yourstory.com).
- Calcutta Social Project – Contact their local Kolkata office with business address and ID.
- tEA Nagaland – Community-based; contact their Kohima branch.
- INFACC Sangamam NHGs – Join a local NHG and apply through self-help group meetings (telegraphindia.com, eastmojo.com, infacc.org).
- NHFDC – NGOs apply via state Channelizing Agencies; PWDs apply through affiliated NGOs (indiafilings.com).
🛠️ Pro Tips for Applicants
- Have basic ID, address, and address proof ready
- Provide business details or photos with customers
- Join local self-help groups for simpler, community-driven loans
- Ask about training support bundled with the loan
- Be open about your repayment capability and plan
💡 Final Thoughts
Interest-free or low-interest loans from NGOs are a lifeline for small entrepreneurs and vulnerable communities. They’re not handouts—they’re tools for dignity and empowerment.
Looking to apply for one of these loans or want help with documentation? Reach out to Green Vision Society—we’ll guide you!
📧 support@greenvisionsociety.org | 🌐 www.greenvisionsociety.org
