Loan Flyer

National Backward Classes Finance & Development Corporation 
A. Background  
National Backward Classes Finance and Development Corporation (NBCFDC), a Government of India Undertaking has been established under the aegis of Ministry of Social Justice & Empowerment which provides concessional financial assistance to the members of Backward Classes whose annual family income is upto Rs.3.00 Lakh, through Channel Partners (State Channelising Agencies/Banks). The loans under Corporation's schemes can be provided for income generating activities, following the due processes of the concerned Channel Partner. The activities could be anything which have potential to provide sustainable income generation for the beneficiary or group of beneficiaries.

B. Eligibility for Loan & Certification Required

1. The applicant should belong to a caste covered under the Other Backward Classes list as notified by State/Central Government from time to time. Relevant Caste Certificate to be issued by relevant authority of District Administration.
2. Annual family income should be upto Rs.3.00 Lakh per annum irrespective of rural or urban area. Following certifications to establish the income criteria can be used by the applicant: -
3. Certificate of income issued by Competent Authority of State Government/Distt. Administration or Antyodaya Anna Yojana (AAY) Card or Below Poverty Line (BPL) Card
4. Self-Certified Annual family income certificate endorsed by any Gazetted Officer notified by State/Central Government.
5. In case of loan being applied at Bank (Channel Partner), Self-Certification assessed and endorsed by Branch Manager can be used for providing the loan.
6. For Landless agriculture labour, marginalized farmers (those with upto One-hectare land holding) and small farmers (those with upto Two-hectare land holding), as assessed by the Banks through their standard processes and belonging to the Backward Classes will be automatically treated as part of the target group as per following considerations: -
   1. Landless agriculture labour and marginalized farmers with land holding less than One hectare will be deemed as having annual family income below Rs.1.50 Lakh per annum.
   2. Small farmers i.e. those with land holding between One and Two hectares will be deemed as having annual family income below Rs.3.00 Lakh per annum.

C. Types of Loans  
(1) Individual Loan Scheme:  Under this scheme, Loans are given upto 85% of the project cost subject to a maximum of Rs.15.00 Lakh per beneficiary. Loans upto Rs. 1.25 Lakh are provided at an interest rate of 7% p.a. for a tenure of 4 years with a moratorium period of 1 quarter. Loans above Rs. 1.25 Lakh and upto Rs. 15.00 Lakh are provided at an interest rate of 8% p.a. for a tenure of 7 years with a moratorium period of 1 quarter. 

Education Loans upto Rs. 15.00 Lakh can be availed at uniform interest rate of 8% p.a. for a tenure of 10 years (inclusive of moratorium period of 5 years).

(2) Group Loan Scheme: Under this scheme, loan assistance is available to Self Help Groups (SHGs) to provide credit facilities for the target group. Loans are given upto 90% of the project cost. Maximum loan limit per Group is Rs.15.00 Lakh and loan per beneficiary in SHG is Rs.1.25 Lakh at an interest rate of 6% p.a. for a tenure of 3 years including moratorium period of 1 quarter. 

Loans provided to NBFC-MFI or similar financial institutions and backed by Bank Guarantee, or any other suitable security are available at an interest rate upto 16% p.a. for a tenure of 3 years with a moratorium period of 1 quarter.

All schemes carry timely payment rebate on annual basis @ 1% to be equally appropriated between Channel Partners and Beneficiaries.

SHGs under NBCFDC's Group Loan Scheme: NBCFDC recognizes SHGs with at least 60% members belonging to Backward Classes provided other members belong to weaker sections (as per income or economic criteria prescribed by Govt.) including Scheduled Castes/Scheduled Tribes/Minorities and Person with Disabilities (PwD).