The poorest among the poor need loans of very small amount but their requirement is quick delivery of loan at their doorsteps. Traditionally, private money lenders have been playing this role but their intention has been to exploit the poor instead of helping them and this rather worsened plight of the poor.
Over a period of time, the significance of provision of credit as an instrument of socio-economic change and development is being realised and many international and national organisations including the nationalised banks have come up to provide soft loans to the poor in order to free them from the clutches of private money lenders. However, the task is gigantic and a wide gap persists in meeting the credit needs of the poor. With this in mind, the NHFDC has decided to implement the Micro Credit Scheme as per details given in the following paras.
Main Features of the Scheme
Purpose of Loan
Purpose of the loan is to provide financial assistance to weaker section of the disabled for starting or augmenting income generation activities.The illustrative nature of income generating activities is given below :
i) Small business/trade
ii) Tiny/cottage industry or service activity
iii) Artisan activities
iv) Agricultural and allied activities
v) Transport sector activities
Quantum of Loan and Rate of Interest
i)No upper limit of loan in case the scheme is implemented by the SCA itself for further disbursement by it to PwDs.
ii)In case of loan to NGO either through SCA or directly by NHFDC, the maximum loan amount shall be limited to Rs.10.0 lakh (Rupees Ten Lakh only). However, the NGO may be sanction repeated loan considering its previous performance, repayment record, utilization of loans etc. However, at any given time, the principal amount outstanding against the NGO will not exceed Rs. 10.0 lakh. NHFDC would provide 100% funding of the sanctioned projects.
iii)In both cases (i) and (ii) above, the maximum amount of loan to a beneficiary will be limited to Rs.50,000/- (Rupees Fifty Thousand only).
Interest & Rebate
i)Interest payable by the beneficiaries shall not exceed 5% per annum.
ii)The lending rate of NHFDC to the SCA will be 2% per annum.
iii)The interest spread of 3% may be divided between the SCA and NGO as per their mutual agreement.
iv)In cases where the loan is directly extended by NHFDC to NGO/SHG, interest payable by the beneficiaries shall not exceed 5% per annum.
v)A rebate of 1% per annum on interest rate will be admissible to women beneficiaries. In this case, the lending rate of NHFDC to the SCA will be 1% per annum.
vi)In addition to (v) above, a further rebate of 0.5% per annum on interest rate will be admissible to PwDs under VH/HH/MR category.
Eligibility Criteria of Beneficiaries
a) Any Indian Citizen with 40% or more disability
b) Age above 18 years.
c) The borrowers already covered under any other scheme of financing sponsored by Central or State Government or financing institutions and having outstanding loans against their names shall not be eligible.
d) The borrowers should preferably be regular member of Thrift and Credit Group (Self Help Group).
e) Preference will be given to women beneficiaries.
f) Relevant educational/technical/vocational qualification, experience and background.
Eligibility Requirement of NGO -
a) The applicant NGO should have been registered for at least three years and it should have good reputation.
b) An NGO intending to implement Micro Credit Scheme should have the objective of serving the social and economic needs of the weaker sections or the Persons with Disability.
c) It should have the necessary flexibility, professional competence and basic financial management capability and organisation skills to implement the lending programme. It must have out reach services in the operational areas.
d) Its office bearers should not be elected members of any political party.
e) It should have a proper system of maintaining accounts. Accounts should have been audited. There should not have been any serious irregularities observed in the audit, and its accounts should be published.
f) It should be running on sound lines and preferably have experience of Thrift and Credit administration of at least three years and its recovery performance during the last three years should be approximately 90% or more.
Financing Patterns
NHFDC would provide 100% of the project cost.
Grant for promotion/training
A grant of Rs. 2,000/- for every block of loan amount of Rs. 1.0 lakh, will also be provided by NHFDC to the NGO for training, orientation/ motivation of the beneficiaries, capacity building and organizing SHGs, awareness creation and administrative expenses. There will be no ceiling of the amount of grant to an NGO.
Grant for promotion/training
A grant of Rs. 2,000/- for every block of loan amount of Rs. 1.0 lakh, will also be provided by NHFDC to the NGO for training, orientation/ motivation of the beneficiaries, capacity building and organizing SHGs, awareness creation and administrative expenses. There will be no ceiling of the amount of grant to an NGO.
More Details and Website:
http://www.nhfdc.nic.in/schemes/micro-financing-scheme