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 Channelising Agencies. It is desirable to disburse loans through Self-Help-Groups (SHGs) by SCAs under Micro Finance Scheme.
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.
SCAs 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.
Salient Features of the Scheme
1. Maximum loan limit per beneficiary Rs. 50,000/-
2. Maximum number of persons in one SHG 20
The scheme is to be implemented through SCAs 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.
Eligibility of the Beneficiary
Members of Backward Classes as notified by Central / State Govt. and are living below double the poverty line i.e, annual family income of the beneficiary should be less than Rs.1,20,000/- p.a. in urban areas and Rs.98, 000/- p.a. in rural areas. In a SHG 75% of members can be from Backward Classes and remaining 25% members may be from other weaker section like SC / Handicapped etc.
Pattern of Financing
1. NBCFDC LOAN 90%
2. SCA LOAN 05%
3. BENEFICIARY CONTRIBUTION 05%
Utilization Period 4 months from date of disbursement
Rate of Interest
1. NBCFDC TO SCA 2% P.A.
2. SCA TO SHG 5% P.A.
Loan is to be repaid in quarterly instalments within 48 months (including the moratorium period of six months on the recovery of principal).