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This scheme by the Ministry of Social Justice offers loans up to ₹15 Lakh to individuals from Read More... backward classes to start or expand income-generating ventures. Read less

Details

Are you from a backward class and looking to start or grow a business in India? The National Backward Classes Finance & Development Corporation (NBCFDC) has a General Loan Scheme designed just for you. This initiative aims to empower individuals by providing financial support for various income-generating activities.

What Is This Scheme?

The NBCFDC General Loan Scheme is a financial assistance program introduced by the Ministry of Social Justice and Empowerment. It provides loans to entrepreneurs from Other Backward Classes (OBCs) to fund their ventures. These ventures can be in areas like agriculture, small businesses, traditional crafts, transport, or technical and professional fields.

Who Can Benefit From This Scheme?

This scheme is primarily for Indian citizens who belong to the Other Backward Classes (OBCs) and are looking to undertake income-generating activities. The applicant must be an entrepreneur and have a total annual family income below ₹3 Lakh.

Why This Scheme Is Important

The scheme plays a crucial role in fostering economic self-sufficiency among the backward classes. By providing accessible loans with reasonable interest rates, it helps individuals create employment opportunities for themselves and contribute to the nation's economy. It supports a wide range of income-generating activities, making it a versatile tool for economic upliftment.

Objective

This scheme by the Ministry of Social Justice offers loans up to ₹15 Lakh to individuals from backward classes to start or expand income-generating ventures.

Benefits

Payment ofFull tuition fee and non-refundable charges(Ceiling of Rs. 2.00 LPA per student for private sector institutions; Ceiling of Rs.3.72 LPA per student for the private sector flying clubs for Commercial Pilot Training and Type Rating Courses)

Living expenses:₹ 3000/- per month per student.

Books and stationery:₹ 5000/- per annum per student.

Acomputer/laptop with accessories (UPS and printer)limited to ₹ 45000/- per student (one-time assistance).

Sources and references

Guidelines

Eligibility Criteria

The applicant must be an entrepreneur.
The applicant must belong to a Backward Class (OBC).
The total annual family income of the applicant should be less than ₹3 Lakh per annum.
Landless agricultural laborers and farmers with land holdings up to one hectare will be considered to have an annual family income below ₹1.50 Lakh.
Small farmers with land holdings between one and two hectares will be considered to have an annual family income below ₹3 Lakh.

How To Apply

Interested applicants can apply for the loan through the State Channelising Agencies (SCAs) or other designated channel partners like banks. The application process typically involves filling out a form and submitting the necessary documents.

For more details and to find the relevant application links, you can visit the official NBCFDC website.

Official Source: https://nbcfdc.gov.in/eligibility/en

Documents Required

Proof of Identity (like Aadhaar card).
Caste Certificate issued by the relevant district authority, confirming the applicant belongs to a Backward Class (OBC).
A recent passport-size photograph of the applicant.
Income proof documents. This can include:
- Certificate of Income issued by the Competent Authority of the State Government/District Administration.
- Antyodaya Anna Yojana (AAY) Card or Below Poverty Line (BPL) Card.
- For loans applied through Banks (Channel Partners), self-certification endorsed by the Branch Manager may be acceptable.
- Landless agricultural laborers, marginalized farmers (up to 1 hectare land), and small farmers (up to 2 hectares land) will have their income assessed based on their land holding as per scheme guidelines.
Domicile Certificate.

Important Notes on Income Criteria:

For landless agricultural laborers and marginalized farmers with land holding less than one hectare, the annual family income is deemed to be below ₹1.50 Lakh per annum.

For small farmers with land holding between one and two hectares, the annual family income is deemed to be below ₹3 Lakh per annum.

Official Sources:

https://nbcfdc.gov.in/eligibility/en

FAQ’s

What is the maximum loan amount available under the NBCFDC General Loan Scheme?

The maximum loan amount you can get under this scheme is ₹15,00,000 per beneficiary.

Who are SCAs and how are they involved?

SCAs stand for State Channelising Agencies. NBCFDC provides financial assistance through these agencies, and they also help in funding through Self-Help Groups (SHGs).

What sectors does NBCFDC support for self-employment ventures?

NBCFDC supports ventures in the following sectors: Agriculture and Allied Activities, Small Business, Artisan and Traditional Occupation, Technical and Professional Trades/Courses, and Transport and Service Sector.

Can women apply for this loan scheme if they are entrepreneurs?

Absolutely! This scheme is open for all eligible individuals pursuing income-generating activities, so women entrepreneurs are welcome to apply.

How are loan repayments structured?

The loan needs to be repaid in quarterly installments. The maximum repayment period is 8 years, which includes a moratorium period of six months for the principal repayment.

How much interest will I have to pay on the loan?

The interest rate depends on the loan amount: 6% per annum for loans up to ₹5 Lakh, 7% per annum for loans above ₹5 Lakh up to ₹10 Lakh, and 8% per annum for loans above ₹10 Lakh up to ₹15 Lakh.

Is there a way to get help or answers to questions about the application process?

Yes, you can reach out for assistance using the Toll-Free Number: 18001023399.

How is the loan amount determined in relation to the project cost?

The loan will cover up to 85% of the project cost. The remaining 15% needs to be contributed by the State Channelizing Agencies (SCAs) or the beneficiary themselves. The funds must be utilized within 4 months from the date of disbursement.

How will I know which fields in the application form are required?

Mandatory fields in the application form are usually marked with a red asterisk (*) next to them.