Micro Credit Finance Scheme – NSFDC for SC Communities
Overview
The Micro Credit Finance scheme is run by the National Scheduled Castes Finance and Development Corporation (NSFDC). It provides small loans to individuals and Self-Help Groups (SHGs) from Scheduled Caste communities through Micro Finance Institutions (MFIs) and State Channelizing Agencies (SCAs).
This scheme targets SC beneficiaries who need small amounts of capital for income-generating activities but cannot access formal banking credit easily.
Objective
The objective is to promote financial inclusion and self-employment at the micro level among SC communities. By channeling micro-credit through SHGs and MFIs, the scheme reaches the most marginalized borrowers at their doorstep.
Benefits
- Loans up to Rs. 1 lakh per individual or SHG member
- Very low interest rate of 1% per annum
- Disbursed through MFIs and SCAs for easy reach
- Encourages group savings and financial discipline through SHGs
Eligibility
- Must belong to a Scheduled Caste family
- Annual family income below the national poverty line or NSFDC ceiling
- Must be a member of a registered SHG or eligible for individual loan
- Age: 18 years and above
- No prior default on NSFDC-linked loans
Exclusions
- Non-SC applicants are not eligible
- Families above the income ceiling are excluded
- Applicants with existing government loan defaults
- Loans are not given for speculative or non-productive purposes
Application Process
- Join or form a Self-Help Group in your area
- Contact the State Channelizing Agency or NSFDC-linked MFI
- Submit the loan application form through the SHG or directly
- SCA/MFI evaluates the application
- Loan is disbursed after approval
Documents Required
- SC caste certificate
- Aadhaar card and address proof
- Income certificate
- SHG membership details (if applicable)
- Bank account passbook
- Passport-size photographs
