NSFDC – Loans, Schemes, Features, Certificates, and Courses

January 21, 2021

11 min read

Everything you needed to know about NSFDC and how to benefit from it– Schemes, Features, Certificates, and Courses & TrainingPartners

National Scheduled Castes Finance and Development Corporation (NSFDC) set up in 1989, is a government entity formed under the auspices of the Indian Company Act 1956. The primary goal of NSFDC is to furnish funds to people falling under the Scheduled Cate strata of the society. This will enable their socio-economic development and stay productive in the mainstream economy.

NSFDC takes the help of State Channelizing Agencies (SCAs) such as Public sector banks, NBFCs, Cooperative Banks, and Regional Rural Banks,

NSFDC has an authorised share capital of Rs 1500 crores, and the Paid-up capital is Rs 1400 Crores as of September 2018

The management of NSFDC consists of a board of directors. The members of the board are drawn from Central Government, Financial institutions, State bodies and non-official members handpicked from the society.

Vision and Mission

NSFDC strives to be a catalyst in the systemic elimination of poverty by grassroots socio-economic development of the Scheduled Caste community. NSFDC places a high priority on efficiency, responsiveness, and collaboration with similar minded national agencies and other non-government organisations.

NSFDC creates prosperity among members of Scheduled Cates by increasing the supply of financial assistance. NSFDC is particularly focused on Skill Development. Skill Development is an important framework on which self-sufficiency can be achieved among vulnerable communities.

The End Objectives of NSFDC

Policy

NSFDC conducts trade identification and selects any such financially productive avenues where economic prosperity can be assured to the Scheduled Caste population.

Skill up-gradation is the measure of a developed society. Various studies have pointed out that, to meet the competitive demands of the new globalized market, individuals should upgrade their skill sets, particularly in the fields of Digital Marketing, Internet Entrepreneurship, and other private sector avenues.

Social Development programmes are initiated through a prototype, also known as a pilot. NSFDC provides working capital to these pilots after vetting the perceived benefits to the Scheduled Cate population.

Training

The target populations are provided with all types of assistance during the working of the project. NSFDC provides project preparation, training of employees, and financial assistance.

Education

Eligible students in SC community are selected and are extended loans for joining in prestigious educational institutions. Complete college tuition is provided to students with merit. This is done so that they can continue their education in technical and professional courses in India and foreign countries.

Employability quotient is a critical factor in the modern job market. There has been a severe scarcity in the percentage of employable graduates straight out of college. NSFDC makes sure that the required loans are extended to eligible candidates to pursue vocational education course. These courses, which include soft skills training and digital marketing, will enable SC community members to improve their careers.

Concession in Interest rates

NSFDC’s main thrust is to provide loans at concessional interest rates through various welfare and credit schemes. These schemes are only for members of the Scheduled Caste community. These schemes are carried out through state and other NGOs.

Schemes

Micro Credit Finance

This scheme allows financial assistance of maximum of Rs 75,000 to meet the capital requirement of the project. This scheme applies mainly to minor income-generating activities.

1) Unit Cost- Up to Rs 75,000/-

2) The measure of Assistance – Up to 90% of the total project cost

Loan amount	Assistance amount	Interest Rate
		SCAs	Beneficiaries
Maximum 75,000/-	90% of Project Cost.	2%	5%

3) Repayment Period- Repayment is to be done in quarterly instalments from the date of the original disbursement of the loan. The total loan should be repaid in 3 and a half years, which also includes the moratorium period.

Term Loan

This scheme is highly beneficial to young entrepreneurs of the Scheduled Caste community. The term loan provided by NSFDC is up to the maximum limit of Rs 50 lakhs.

1) The measure of Assistance- Term loan is provided up to 90% of the total project cost. The condition is that beneficiaries should give their share of assistance as per the guidelines in the scheme.

2) Interest rates increase incrementally as the term loan amount goes up. Repayment can be made through quarterly, half-yearly, and annual instalments. The period of repayment is up to a maximum of 10 years. The moratorium period is between 6 to 12 months, depending on the type of business.

Mahila KisanYojna

Rural prosperity is one of the key goals of NSFDC. What better to guarantee rural prosperity than uplifting the rural women through credit programmes? This flagship scheme is for rural women who are engaged in agriculture and other mixed farming activities.

1) The measure of assistance is up to Rs 2 lakhs. The interest rate varies between 2% and 5 %.

2) The total repayment period is 10 years in the form of quarterly instalments. The moratorium period is 12 months.

Educational Loan Scheme

This scheme aims to give students full interest subsidy for the moratorium period for student and education loans for those students who wish to pursue a professional and technical course in India.

1) The Education Loan Scheme offers loans without the need of collaterals or third party guarantee.

2) Students who have a gross or family income of Rs.4.5 Lakh are eligible to apply for this loan scheme.

Vocational Education and Training Loan Scheme

In order to get better job prospects, candidates need to have the right amount of training and skill to be selected for their desired job. For these purposes, the Vocational Education and Training Scheme offers willing candidates the opportunity to gain financial support with which they might increase their skill and overall employability.

1) The NSFDC charges from the Channelizing Agent an interest rate of 1.5%. this Agency can then charge 4% per annum from the beneficiaries.

2) Women applying for this scheme will be provided with a rebate of 0.5% on the interest rate.

Green Business Scheme

Weather and natural calamities can have an adverse effect on employment and. In this light, The Green Business Scheme offers financial assistance for Activities that can take on and help combat climate change and the same time helps create income generation.

1) The interest rate for the beneficiaries are as follows:
~Up to Rs.7.50 Lakh                    –          4%
~Rs.7.50 lakh to Rs.15 Lakh       –          6%
~Rs.15 Lakh to Rs.30 Lakh              –           7%

2) The NSFDC offers a loan up to 90% of the cost of the unit and the eligible candidates can avails unit cost up to Rs.30 lakh.

Shilpi Samriddhi Yojana

This scheme provides loans to artisans belonging to the Scheduled Castes who have and Artisans identity Card which has been issued by the Development Commissioner of Handicrafts.

1) With a moratorium period of 6 months, the repayment period for the loan in 6 years.

2) the unit cost is up to Rs.2 Lakh and under the SSY, Quantum of Assistance is up to 90%of the cost of the project.

Laghu Vyavsay Yojana

The LaghuVyavsayYojana is specifically catered to financing the Scheduled caste community and help the members of the caste get access to loans. 1) This scheme has a moratorium of 6 months and a repayment of 6 years in the form of quarterly instalments. This period is also inclusive of the moratorium period.

Loan amount	Assistance amount	Interest Rate
		SCAs	Beneficiaries
Maximum 75,000/-	90% of Project Cost.	3%	6%

Mahila Samriddhi Yojana

Similar to that of the MahilaKisanYojana, the MahilaSamriddhiYojana plays in an important role in providing the women of the rural areas the benefit of having a rebate with the interest rate on the loans taken from this scheme.

1)This scheme offers financial assistance of up to Rs.75 thousand.

2) with quantum assistance being a maximum of 90% of the cost of the project, the beneficiaries get 4% interest rate while the members of the Scheduled Caste receive an interest rate of 1%.

Aajeevika Micro-Finance Yojana

Microtransactions are crucial for running any business and for that the right amount of financial support is always needed. This scheme aims to provide that support to the members of the Scheduled Caste who are eligible. Alongside that this scheme offers reasonable interest rates that allow the applicants to pursue micro-business activities.

1)Up to 90% of the project cost will be shared by the NSFDC while the rest 10% will be contributed by the beneficiaries or the NBFC-MFI.

2)the maximum repayment period for the loan will be 3.5 years pain in quarterly instalments from the date of each disbursement including the 3 month moratorium period.

Top features of NSFDC

People having no income are also considered under the target group.
Free training is given for skill development programs, and Rs.1500 stipend is given to trainees during their training period.
Entrepreneurial guidance is the hallmark of success. NSFDC provides valuable think tank services to young beneficiaries to kick-start their business and catch up with the competition.
Sponsor programmes are taken up by NSFDC that are pre-approved by the respective state skill councils.

List of Certifications and Courses

Hardware and Networking certification course
Automobile Servicing and Repairs
Microsoft Office and Web-based services
Certification in Electronic Assembly
Entrepreneurship development
Garment Construction certification
Motor Rewinding
CNC Lathe Machine Operator
Pattern Cutting in metallic objects through software certification
Beauty Parlour
CAD using Auto CAD
CNC Milling and Turning Programming and Operation
Diploma in Hardware and Networking
Fruit Processing
Laboratory Technician
Machine Mechanic Course Desktop
Mobile Phone Repairs
Nursing
Operator
Photography and Videography
Plastic Extrusion and Injection Machine Operator
Production Supervisor and Quality Control
Publishing and MS Office
Repairing of Refrigerator and Air Conditioner
Repairing, Maintenance of Diesel Engine and Power Tiller
Sewing Machine Operator Course
Soft Toys making
Welding and Fabrication, Electrician, etc.

Term Loan can be applied for the following activities:

Leather goods manufacturing
Silk reeling unit
Mulberry farming
Silver ornaments making
Steel Fabrication
Sheep farming and Tent House
Agricultural Land
DTP and Computer Centre
Beauty Parlour
Readymade Garments
Departmental Store
Furniture making
Goatery
Auto rickshaw
Medical shop
Fertilizer Shop
Hand and Power loom
Hardware shop
Cultivation
Fishery
Cyber café
Honey Bee Farm
Flour Mill
Photography
Diary Shop
Poultry
Tailoring
Footwear Manufacturing
Horticulture.

The main objective of NSFDC is to provide a modern livelihood for the SC community by providing capital to their entrepreneurial visions. Its chief goal is that no person from the socially disadvantaged community is left out from the credit market.

NSFDC FAQs:

1. How to contact NSFDC?

NSFDC can be contacted at the following address: 14th Floor-Scope Minar, Laxmi Nagar, Delhi

2. Are there any additional schemes for women?

There are a couple of additional schemes for women such as MahilaSamriddhiYojana and MahilaKisanYojana.

3. What are the age criteria for the NSFDC loan?

No age criteria exist for a loan application from NSFDC. Minors need permission from parents during loan application.

4. Is the NariArthikSashaktikaranYojana available?

No. As of now, the NariArthikSashaktikaranYojana has been closed by the NSFDC.

5. Does the NSFDC have and income criteria for skill training programs?

No, there is no income criteria for a skill training program offered by NSFDC and is free.

6. Does the NSFDC offer loans to all SC members?

NO, the NSFDC offers loans only to those SC members who have an annual family earning of more than Rs.3 lakh.

7. For which activities can an NSFDC loan be taken?

An NSFDC loan can be taken for the service sector, transport sector, technical and professional sector, agricultural and other allied sectors.

8. How does the NSFDC provide loans?

The NSFDC offers loans through public sector banks, regional rural banks, state scheduled caste development corporations and other similar institutions.

9. Is there any additional benefit for the skill training program?

During the time of training of the skill training program, the traineesare provided with a stipend of R.1500 each month to cater to their incidental expenses.

10. Can the beneficiaries choose their scheme?

Yes, the beneficiaries are allowed to choose whichever scheme they feel after carefully considering the skill,local needs and efficiency during the selection of the business endeavour.

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