The National Backward Classes Finance & Development Corporation (NBCFDC) is a government undertaking, under the ministry of social justice and empowerment. NBCFDC was set up in 1992 with an objective to promote economic and developmental activities for the benefit of backward classes. Its managing director AA Naqvi spoke on a range of issues. Excerpts:
What are the main objectives of the corporation?
The main objectives are to promote economic and developmental activities for the benefit of backward classes, assist individuals or groups of individuals belonging to backward classes by way of loans and advances for economically and financially viable schemes and projects, to promote self employment and other ventures for the benefit of backward classes, to assist in the upgradation of technical and entrepreneurial skills of backward classes for proper and efficient management of production units.
What is your target group?
NBCFDC provides financial assistance to the members of backward classes as notified by the centre and state governments from time to time.
Can you give us an idea about the amount of funds disbursed by NBCFDC?
NBCFDC has so for disbursed loans over R1947.60 crore through its state channelising agencies (SCAs) to assist over 13 lakh families. The recovery is 87% and utilisation is 96%. NBCFDC’s performance has been adjudged excellent during the last 10 years and also rated one of the top public sector enterprises by the department of public enterprises. NBCFDC also received the “SCOPE Meritorious Award” last year.
What are the schemes being implemented by corporation?
NBCFDC implements general loan scheme, margin money loan scheme and micro finance loan scheme at concessional rates of interest through SCAs. The general loan scheme being implemented for providing term loans in helping individuals belonging to backward classes in various sectors such as agriculture and allied activities, small businessmen, artisans and to those engaged in traditional occupations.
Do you have any specific schemes for the youth, particularly in the area of education?
NBCFDC has an education loan scheme “New Akanksha” to provide financial assistance to the backward classes students for professional and technical courses at graduate and higher level like MBBS, engineering, graduate and post-graduate courses in computer applications, hotel management and nursing among others at a concessional rate of interest of 4% for boys and 3.5% for girl subject to a maximum loan limit of R10 lakh per student for studying within India and R20 lakh for studying abroad. A special scheme called “SAKSHAM” under term loan has been introduced for young professionals.
Can you elaborate on women-oriented schemes you offer?
Under micro finance, NBCFDC has a special scheme for women Self-Help Groups (SHGs) named ‘Mahila Samriddhi Yojana’ (MSY) with a loan limit of R50,000 per beneficiary. The scheme caters to the need of those who have formed SHGs and plan to engage in income generating economic activities.