An efficient method for removing the self-consistent field (SCF) diagonalization bottleneck is proposed for systems of weakly interacting components. The method is based on the equations of the locally projected SCF for molecular interactions (SCF MI) which utilize absolutely localized nonorthogonal molecular orbitals expanded in local subsets of the atomic basis set. A generalization of direct inversion in the iterative subspace for nonorthogonal molecular orbitals is formulated to increase the rate of convergence of the SCF MI equations. Single Roothaan step perturbative corrections are developed to improve the accuracy of the SCF MI energies. The resulting energies closely reproduce the conventional SCF energy. Extensive test calculations are performed on water clusters up to several hundred molecules. Compared to conventional SCF, speedups of the order of (N/O)2 have been achieved for the diagonalization step, where N is the size of the atomic orbital basis, and O is the number of occupied molecular orbitals.