National Backward Classes Finance and Development Corporation (NBCFDC)
Brief Note on Working of "Concessional loans for Income Generating Activities"
The National Backward Classes Finance and Development Corporation (NBCFDC) under the aegis of Ministry of Social Justice & Empowerment, Government of India is a company not for profit under Section-25 of the Companies Act 1956. Main objective of the Corporation is to provide concessional financial assistance to the members of the Backward Classes for their socio-economic development and to upgrade the technological and entrepreneurial skills of individuals or groups belonging to Backward Classes through State Channelising Agencies (SCAs) nominated by respective State Government/UT.
Members of Backward Classes having annual family income less then double the poverty line (i.e. Rs. 40,000/- in rural areas and Rs. 55,000/- in urban areas) are eligible to obtain loan from NBCFDC.
NBCFDC assists a wide range of income generating activities which include agricultural and allied activities, small business / artisan and traditional occupation, transport sector & service sector, technical and professional trades / courses. The maximum loan limit, pattern of financing, rate of interest, utilization period etc. are appended at Annexure - 'A' (-1 ) (PDF file that opens in a new window)
The authorized share capital of the NBCFDC as on 31.03.2009 is Rs. 700.00 Crores.
Types of Loan
- Term Loan: Maximum loan limit is Rs. 5.00 Lakh per beneficiary. Loan is given upto 85% of the project cost.
- Marging Money Loan: Maximum loan limit is Rs.5.00 Lakh per beneficiary. Loan is given upto 40% of the project cost, balance amount of project cost is contributed by Bank / Financial Institution (50%), SCA (5%), and the beneficiary (5%).
- Micro Finance: Maximum loan limit is Rs.25,000/- per beneficiary / member of the SHG. Loan is given upto 90% to 95% of the project cost.
Activities which can be financed
The Corporation can assist a wide range of income generating activities under following broad sectors:
- Agriculture & Allied Sector: Bee-keeping, Boat, Bore Well, Dairy, Fishing, Lift Irrigation, Tractor Trolley etc.
- Small Business / Artisan & Traditional Occupation: Bakery, Barber Shop, Beauty Parlour, Blacksmithy, Carpentry, Dry Cleaning, Grocery Shop, Handicrafts & Artisans Units, Pottery, Readymade Garments Shops, Tailoring & Weaving etc.
- Transport Sector & Service Sector: Auto Repair Shop, Auto Rickshaw, Consultancy Services, Cycle Repair Shop, Computer Centre, Electrical & Electronic Repair Shop, Home Appliances, Hotel & Restaurants, Mobile Repair Shop, Multi Utility Vehicle, Photocopier, Photo Studio, Plumber, Pick-up Van, Taxi, Tempo etc.
- Technical and Professional Trades / Courses: Technical & Professional Courses at Graduate and Higher level such as Engineering, Management, Medicine, Nursing & Computers etc. approved by concerned authorities such as AICTE, Medical Council of India etc.
The examples are illustrative only.
The SCAs are to disburse loans as per needs and choice of beneficiaries under above mentioned broad sectors.