Sarkari Yojana
Micro Credit Finance (NSFDC)
About Micro Credit Finance (NSFDC)
The National Scheduled Castes Finance and Development Corporation (NSFDC), under the Ministry of Social Justice and Empowerment, Government of India, implements the “Micro Credit Finance” scheme, giving individuals from the Scheduled Caste community loans for units costing up to ₹1,40,000/-. These loans back income-generating activities such as running a betel leaf shop, bakery, candle making, cycle repair, goat rearing, beauty parlour, vegetable vending, incense stick making, fish vending, milch animal rearing, papad manufacturing, pickle manufacturing, tea shop, and other similar viable ventures.
Scheme Overview
Central Government
Ministry Of Social Justice and Empowerment
National Scheduled Castes Finance And Development Corporation
Individual
Scheme Details
Eligibility Requirements
To qualify for Micro Credit Finance (NSFDC), applicants must satisfy the following conditions:
The individual applicant must belong to a Scheduled…
The individual applicant must belong to a Scheduled Caste community.
The applicant's annual family income must be under…
The applicant's annual family income must be under ₹3,00,000/-, whether in rural or urban areas, with effect from 08.03.2018.
Partnership Firms and Co-operative Societies may also apply,…
Partnership Firms and Co-operative Societies may also apply, subject to:
All members of the Partnership Firm/Co-operative Society belonging…
All members of the Partnership Firm/Co-operative Society belonging to a Scheduled Caste community.
Each member/applicant's annual family income not exceeding ₹3,00,000/-
Each member/applicant's annual family income not exceeding ₹3,00,000/-. Note: State Channelizing Agencies (SCAs)/Channelizing Agencies (CAs) are solely responsible for verifying eligibility, though NSFDC may re-verify applicant eligibility if it wishes.
Benefits Provided
Micro Credit Finance (NSFDC) provides the following benefits to eligible applicants:
Maximum Loan Limit:
NSFDC finances up to 90% of the Project…
NSFDC finances up to 90% of the Project Cost, capped at ₹1.25 lakh. Rate of Interest:
NSFDC charges SCAs/CAs 2.5% interest, who in turn…
NSFDC charges SCAs/CAs 2.5% interest, who in turn charge beneficiaries 6.5%. Repayment Period:
The loan is repaid in quarterly instalments over…
The loan is repaid in quarterly instalments over a maximum of three years from disbursement, a 3-month moratorium included.
Documents Required
Applicants should keep the following documents ready before starting the application:
A photograph of passport size
A photograph of passport size
The applicant's Aadhaar card
The applicant's Aadhaar card
A certificate stating the applicant's income
A certificate stating the applicant's income
Certificate showing the applicant's caste
Certificate showing the applicant's caste
Proof of where the applicant resides
Proof of where the applicant resides
Bank passbook or details of the bank account
Bank passbook or details of the bank account
Further documents, if needed
Further documents, if needed
How to Apply
Offline Application
Applicants can apply for Micro Credit Finance (NSFDC) through the offline application process outlined below.
Applicants wanting an NSFDC loan should contact the…
Applicants wanting an NSFDC loan should contact the District Office of a State Channelizing Agency (SCA).
Applicants must submit the application in NSFDC's format,…
Applicants must submit the application in NSFDC's format, with business details and copies of caste, income, experience, and other documents, to the District Office of the SCA — or, alternatively, to another NSFDC Channelizing Agency such as a Regional Rural Bank, Public Sector Bank, or NBFC-MFI with which NSFDC has signed a Memorandum of Agreement.
The District Offices of the SCAs/CAs scrutinise applications…
The District Offices of the SCAs/CAs scrutinise applications for eligibility.
They then forward the scrutinised applications to their…
They then forward the scrutinised applications to their respective Head Offices for further processing.
The Head Offices of the SCAs/CAs assess project…
The Head Offices of the SCAs/CAs assess project viability, recommending viable proposals for sanction and forwarding them to NSFDC with their recommendations.
NSFDC's Project and Banking Desk appraises the loan…
NSFDC's Project and Banking Desk appraises the loan proposals from the SCAs/CAs, preparing an appraisal report for the Project Clearance Committee's (PCC) concurrence.
The PCC reviews the appraisal report and, if…
The PCC reviews the appraisal report and, if satisfied, recommends the proposals for sanction — Sanction Letters (Letters of Intent), along with Terms & Conditions, then go to the SCAs/RRBs/Public Sector Banks/NBFC-MFIs for acceptance.
Once sanction terms are accepted and Prudential Norms…
Once sanction terms are accepted and Prudential Norms met, NSFDC disburses funds to the SCAs/RRBs/Public Sector Banks/NBFC-MFIs, who then pass them on to beneficiaries.
Beneficiaries repay their loans as per the schedule…
Beneficiaries repay their loans as per the schedule the SCAs/CAs set. Note 1: Applicants must apply for NSFDC financial assistance through the relevant State Channelizing Agency (SCA)/Channelizing Agency (CA); NSFDC does not entertain direct contact or correspondence from applicants/beneficiaries under any circumstances. Note 2: NSFDC funds income-generating activities for target groups through its Channelizing Agencies — State Scheduled Castes Development Corporations (SCDCs), Public Sector Banks (PSBs), Regional Rural Banks (RRBs), and other institutions.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.