National Scheduled Castes Finance and Development Corporation (NSCFDC)
National Scheduled Castes Finance and Development Corporation (NSCFDC) (External website that opens in a new window)Brief on "Concessional loans for Income Generating Activities"
Organisation
The National Scheduled Castes Finance & Development Corporation (NSFDC), an ISO 9001:2000 Certified Company, was set up by the Government of India in February, 1989 under Section 25 of the Companies Act, 1956. NSFDC is a fully owned Government of India Undertaking under the Ministry of Social Justice & Empowerment and is managed by a Board of Directors with representation from Central Government, State Scheduled Castes Development Corporations, Financial Institutions and non-official members representing Scheduled Castes.
Objective
The broad Objective of NSFDC is to finance for the economic empowerment of persons including skill upgradation belonging to the Scheduled Caste families living below Double the Poverty Line [presently Rs.40,000/- per annum for rural area and Rs.55,000/- per annum for urban areas].
Operations
The NSFDC finances income-generating schemes for the Scheduled Caste persons through the State Channelising Agencies (SCAs) and other recognized institutions nominated by the respective State/UT Governments.
Share Capital
As on 31.3.2009, the Authorized Share Capital of the Corporation is Rs.1,000/- crore and Paid-up Capital is Rs.476.80 crore
Schemes of NSFDC
The details of NSFDC schemes are given as under:
(a) Credit Based Scheme
| Scheme | Unit Cost (Rs. in Lakh) | Interest Rates per Annum Chargeable to | |
|---|---|---|---|
| SCAs | Beneficiaries | ||
| Term Loan(a) | Upto Rs. 5.00 | 3% | 6% |
| Term Loan(b) | Above Rs. 5.00 & upto Rs. 10.00 | 5% | 8% |
| Term Loan(c) | Above Rs. 10.00 & upto Rs. 20.00 | 6% | 9% |
| Term Loan(d) | Above Rs. 20.00 & upto Rs. 30.00 | 7% | 10% |
| Mahila Kisan Yojana | Upto Rs. 0.50 | 2% | 5% |
| Micro Credit Finance | Upto Rs. 0.30 | 2% | 5% |
| Mahila Samriddhi Yojana | Upto Rs. 0.30 | 1% | 4% |
| Shilpi Samriddhi Yojana | Upto Rs. 0.50 | 2% | 5% |
NSFDC provides loans upto 90% of unit cost and remaining share is provided by State Channelizing Agencies (SCAs) and in some cases partly by promoters as per the Lending Policy. In all the schemes, subsidy @ Rs.10,000/- or 50% of the unit cost, whichever is less, per unit is provided by SCAs from Special Central Assistance to Scheduled Caste Sub-Plan (SCSP) to the Below Poverty Line (BPL) beneficiaries.
Under the Micro Credit Finance and Mahila Samriddhi Yojana, the SCAs can either provide loans to individual beneficiaries or through Self Help Groups (SHGs).
NSFDC extends financial assistance in the form of loan for a wide range of income generating activities which include agricultural and allied activities, artisans and traditional occupations, technical trades, self-employment, small scale and tiny industries, small business, transport services etc.
