Credit Based Schemes For SC - Aajeevika Micro-Finance Yojana (Livelihood Microfinance Scheme)

Micro finance scheme by Ministry of Social justice and Empowerment for Entrepreneur of Scheduled Caste Category.

Objective

To provide prompt and need-based micro finance to eligible scheduled caste persons at a reasonable interest rate through NBFC-MFIs to pursue small/micro business activities.

Financial Assistance up to 90% of Project Cost of Rs. 1,40,000 for small income-generating activities at Interest rates chargeable at 11% (10% for Women)

 

Eligibility of Non-Banking Financial Company-Micro Finance Institution (MFI)

1. The Last Mile Financier i.e. NBFC-MFI fulfilling the following norms shall be considered eligible to avail financial assistance from NSFDC:
2. The NBFC-MFI should be registered with the RBI as Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI).
3. NBFC-MFI should be following all RBI norms related to Micro Finance.
4. The NBFC-MFI should have 3 years of continuous profit track record.
5. The NBFC-MFI should have Gross Non-Performing Assets (NPA) less than 2 % and net NPA below 0.5% as per their Annual Accounts for the preceding financial year.
6. The NBFC-MFI should be a member of a Credit Bureau.
7. The NBFC-MFI should have minimum Capacity Assessment Rating of mfr5 by CRISIL or its equivalent.
8. The NBFC-MFI should not have defaulted in repayment of outside borrowings in the last three years or undergone a corporate debt re-structuring.
9. The NBFC-MFI should have proper system for internal accounting, risk management, internal audit, MIS, cash management etc. and its annual accounts should have been audited in the last three years.
10. It will be desirable for the NBFC-MFI to have undergone Code of Conduct Assessment (COCA) with a minimum score of 60 or equivalent.

Unit Cost

The unit cost of the project could be up to Rs.1,40,000/-.

 

Quantum of Assistance

The NSFDC's share could be up to 90% of the project cost. The balance share shall be contributed by the NBFC-MFI and/or beneficiaries.

Rate of Interest

1. Individual
   • NSFDC to NBFC-MFI - 4% p.a. for Women , 5% p.a. for Men
   • Interest Spread to NBFC-MFI - 8%
   • NBFC-MFI to Beneficiaries - 12% p.a. for Women, 13% p.a. for Men
2. Self Help Groups
   1. • NSFDC to NBFC-MFI - 2% p.a. for Women , 3% p.a. for Men
      • Interest Spread to NBFC-MFI - 8%
      • NBFC-MFI to Beneficiaries - 10% p.a. for Women, 11% p.a. for Men

 

Interest Subvention

1. (Applicable only for individual borrowers)
2. The Individual beneficiaries shall be eligible to get interest subvention @ 2% per annum from NSFDC on timely full repayment of dues on yearly basis. The amount shall be credited by NSFDC directly to the account of the beneficiaries by Direct Benefit Transfer (DBT) after receiving information from NBFC-MFIs about prompt repayment made by the Individual beneficiaries subject to full repayment made by NBFC-MFIs.

 

Second Loan

After repayment of earlier loan, the eligible beneficiaries can avail further loan under NSFDC schemes from NBFC-MFIs or other channelizing agencies of the NSFDC.

Benefits

Financial Assistance up to 90% of Project Cost of Rs. 1,40,000 for small income-generating activities at Interest rates chargeable at 11% (10% for Women)

Repayment Period

1. Within 3 and ½ years, in quarterly installments from the date of each disbursement including the moratorium period.
2. The loan is to be repaid in quarterly installments within a maximum period of three and half years from the date of each disbursement including moratorium period.

Moratorium Period

3 months.

1. The Individual beneficiaries shall be eligible to get interest subvention @ 2% per annum from NSFDC on timely full repayment of dues on yearly basis.
2. The amount shall be credited by NSFDC directly to the account of the beneficiaries by Direct Benefit Transfer (DBT).

Note

After repayment of earlier loan, the eligible beneficiaries can avail further loan under NSFDC schemes from NBFC-MFIs or other channelizing agencies of the NSFDC.

Eligibility

The scheme is for entrepreneurs of the Scheduled Caste Category.

Application Process

Offline

The interested eligible person shall contact the nearest Channeling Agency (https://nsfdc.nic.in/channel-patrners/ ) .

Indicative Format

Https://Nsfdc.Nic.In/UploadedFiles/Other/Form/Termloan-English.Pdf

1. The Loan Applications Are To Be Submitted By The Eligible Target Group (Scheduled Castes Persons Having Annual Family Income Up To Rs. 3.00 Lakhs ) To The District Offices Of State Channelizing Agencies (SCAs).
   
2. The District Offices Of SCAs/CAs Forward These Applications, After Scrutiny, To Their Head Offices. The Viability Of The Project Proposals Are Appraised By The SCAs And The Viable Projects Are Forwarded To NSFDC Along With Their Recommendations For Sanction.
   
3. Eligible Target Group Can Also Submit Their Loan Application To Other Channelising Agencies Of NSFDC Such As Regional Rural Banks/ Public Sector Banks/ NBFC-MFIs Etc. With Whom NSFDC Has Signed Memorandum Of Agreements.
   
4. The Said Project Proposals Are Appraised By The Project And Banking Desk. The Appraisal Report Is Submitted To The Project Clearance Committee (PCC) For Their Concurrence.
   
5. The Proposals Which Are Found To Be In Order Are Recommended For Sanction. After Sanction, Sanction Letters Called As Letter Of Intents(LOIs), Along With Terms & Conditions Are Issued To The SCAs/ RRBs/ Public Sector Banks/ NBFC-MFIs Etc. For Acceptance.
   
6. After Acceptance Of The Terms And Conditions Of The Sanction And Fulfillment Of Prudential Norms, As Applicable, Funds Are Disbursed To The SCAs/ RRBs/ Nationalized Bank For Onward Disbursement To The Beneficiaries.
   
7. The Disbursement Of Funds Is Made By NSFDC On Receipt Of Demand From The SCAs/ RRBs/ Public Sector Banks/ NBFC MFIs. The Loans Are To Be Repaid By The Beneficiaries As Per The Repayment Schedule Stipulated By The SCAs/CAs

Documents Required

The applicants are required to submit an application in NSFDC's format with details of business and copies of caste, income and experience etc. at the channelising agency office.

Indicative Documents

1. Aadhaar Card
2. Income certificate
3. Caste certificate
4. Bank account statement