Loan Scheme Description

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Micro Finance Scheme

Objectives

In order to cater to the Micro Finance needs of small entrepreneurs belonging to the target group, the Corporation has introduced a scheme for Micro Financing through nominated Channel Partners (State Channelising Agencies/Banks). It is desirable to disburse loans through Self-Help Groups (SHGs) by Channel Partners under Micro Finance Scheme.

Self-Help Groups (SHGs)

SHGs is a small economically homogenous and affinity group of poor people voluntarily formed to save and mutually agree to contribute to a common fund to be lent to its members as per group decision.

Channel Partners may also play a vital role through their field officers, encouraging people of the target group in forming Self-Help Groups and get financial assistance under Micro Finance Scheme of NBCFDC.

Eligibility

Members of Backward Classes as notified by Central/State Govt. from time to time.
Applicant’s annual family income should be upto Rs. 3.00 Lakh. .
In a SHG 60% of members can be from Backward Classes and remaining 40% members may be from other weaker section like SC/Handicapped/Minorities etc.

Salient Features

1. Maximum loan limit per SHG : Rs.15.00 Lakh

2. Maximum loan limit per beneficiary : Rs. 1,25,000/-

3. Maximum number of persons in one SHG : 20

Implementation

The scheme is to be implemented by Channel Partners in rural and urban areas by way of financing the beneficiaries either directly or through Self-Help Groups (SHGs) preferably in the areas remained uncovered so far under any of such scheme.

Pattern of Financing

1. NBCFDC Loan : 90%

2. Channel Partner/ Beneficiary contribution : 10%

Rate of Interest

1. From NBCFDC to Channel Partner : 2% p.a.

2. From Channel Partner to SHG/Beneficiary : 5% p.a.