NBCFDC Initiative: Concessional Loans up to ₹25 Lakh and Educational Support for Backward Classes

The National Backward Classes Finance and Development Corporation (NBCFDC), an undertaking of the Government of India under the Ministry of Social Justice and Empowerment, is providing concessional financial assistance to eligible members of backward classes through state channelizing agencies and banks.

A senior official of the corporation stated that members of the notified Other Backward Classes (OBC) with an annual family income of up to ₹5 lakh can obtain assistance for activities aimed at increasing their permanent income. To avail of this, applicants must meet the necessary eligibility criteria and follow the prescribed procedures of the channel partner.

According to the details of the individual loan scheme, this assistance can cover up to 85% of the project cost, with a maximum loan limit of ₹25 lakh per beneficiary. Regarding interest rates, loans up to ₹1.25 lakh will carry an annual interest rate of 7%, while loans exceeding ₹1.25 lakh and up to ₹25 lakh will carry an annual interest rate of 8%.

Providing support in the field of education, NBCFDC is offering education loans of up to ₹25 lakh at an annual interest rate of 8%. As per the corporation's terms, the repayment period for this loan, including the moratorium period, can extend up to 10 years.

Under the group loan scheme, self-help groups are provided assistance of up to ₹25 lakh per group, with a limit of ₹1.25 lakh per beneficiary. This loan, available through state channelizing agencies or banks, can cover up to 90% of the project cost at an annual interest rate of 7%. For this scheme, it is mandatory that at least 60% of the group members belong to backward classes, while other members may belong to eligible deprived sections.

The corporation also mentioned that there is a provision for a 1% discount for beneficiaries who make their annual payments on time, which is shared equally between the channel partner and the beneficiary. Interested and eligible applicants can contact the respective channel partner in their district or apply through the registration portal on the official NBCFDC website.

It is noteworthy that the National Backward Classes Finance and Development Corporation (NBCFDC) was established on January 13, 1992, with the objective of promoting economic and developmental activities, skill development, and self-employment.