Micro Credit Finance (NSFDC)

Description
The scheme "Micro Credit Finance" is implemented by the National Scheduled Castes Finance and Development Corporation NSFDC under the Ministry of Social Justice and Empowerment, Government of India. Under this scheme, loans are provided to individuals from the Scheduled Caste community for units costing up to ₹1,40,000/-. The loans support 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 activities.

Benefits
• **Maximum Loan Limit:**
• NSFDC provides loans up to 90% of the Project Cost with the maximum amount of ₹1.25 lakhs.
• **Rate of Interest:**
• The NSFDC shall charge interest @ 2.5% from the SCAs/CAs, which in turn, shall charge 6.5% from the Beneficiaries.
• **Repayment Period:**
• The loan under the Scheme is to be repaid in quarterly instalments within a maximum period of three years from the date of disbursement including 3 months moratorium period.

Eligibility Criteria
1. The Individual applicant should belong to a Scheduled Caste community.
2. The applicant's annual family income should be less than ₹3,00,000/-, both in rural and urban areas w.e.f. 08.03.2018.
3. The Partnership Firms and Co-operative Societies are also eligible to apply under the scheme. However, proposals submitted by Partnership Firms and Co-operative Societies shall be considered subject to the following:
4. a) All the members of Partnership Firms/Co-operative Societies belong to Scheduled Caste community.
5. b) Annual family income of each member/applicant should not exceed ₹3,00,000/-.
6. **Note:** The verification of eligibility criteria shall be the sole responsibility of the State Channelizing Agencies (SCAs)/Channelizing Agencies (CAs). NSFDC shall, however, be entitled to re-verify the eligibility of the applicants, if it so desires.

Required Documents
• Passport-size photograph
• Aadhaar Card
• Income certificate
• Caste certificate
• Residence proof
• Bank passbook/bank details
• Any other documents as required

Frequently Asked Questions
Q: What is NSFDC?
A: NSFDC stands for National Scheduled Castes Finance and Development Corporation. It was set up by the Government of India under Ministry of Social Justice & Empowerment (MOSJ&E) on 8th February, 1989 under Section 25 of the Companies Act, 1956 as a company 'not for profit'. Now, it is Section 8 Company (not-for-profit) under campanies Act, 2013.

Q: What is the Contact Address of NSFDC?
A: NSFDC has its Head Office at Delhi and its full address and contact number is :- National Scheduled Castes Finance and Development Corporation 14th Floor, SCOPE Minar, Core 1 & 2, Laxmi Nagar, Delhi- 110 092 Tele: 011-22054392, 22054394, 22054396. Fax: 011-22054395 E-mail : support-nsfdc[@]nic[dot]in Website : www.nsfdc.nic.in It has three Liasion Centers at Mumbai, Kolkata, and Bengaluru.

Q: What is the maximum loan amount provided under this scheme?
A: NSFDC provides loans up to 90% of the project cost, with a maximum amount of [?]1.25 lakhs.

Q: What activities are eligible for funding under the scheme?
A: Eligible activities include 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 activities.

Q: What is the interest rate charged under this scheme?
A: NSFDC charges interest at 2.5% from SCAs/CAs, which in turn charge 6.5% from the beneficiaries.

Q: What is the repayment period for the loan under this scheme?
A: The loan must be repaid in quarterly installments within a maximum period of three years from the date of disbursement, including a 3-month moratorium period.

Q: Who is eligible to apply for the Micro Credit Finance scheme?
A: The applicant must belong to a Scheduled Caste community, and the annual family income should be less than [?]3,00,000/-.

Q: Can partnership firms and cooperative societies apply for the loan?
A: Yes, provided all members belong to the Scheduled Caste community and the annual family income of each member does not exceed [?]3,00,000/-.

Q: Where can applicants apply for the loan?
A: Applicants should contact the District Office of State Channelizing Agencies (SCAs) or other Channelizing Agencies like Regional Rural Banks, Public Sector Banks, and NBFC-MFIs with whom NSFDC has signed Memorandums of Agreement.

Q: Can applicants directly contact NSFDC for the loan?
A: No, applicants must apply through the concerned State Channelizing Agencies (SCAs) or Channelizing Agencies (CAs).

Q: How are the loan amounts disbursed to the beneficiaries?
A: The loan amounts are usually disbursed through the SCAs or the respective Channelizing Agencies.