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Providing loans to the poor

india Updated: Mar 21, 2010 23:01 IST
HT Correspondent
HT Correspondent
Hindustan Times
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National Backward Classes Finance and Development Corporation (NBCFDC) is a government undertaking under the ministry of social justice and empowerment. The corporation works for the betterment of the Backward Classes living below double the poverty line. Its managing director A.A. Naqvi spoke to HT on a range of issues. Excerpts:

What are the main objectives of NBCFDC?
The main objectives of the corporation are to promote economic and developmental activities for the benefit of backward classes. The corporation provides term loan and micro credit finance at concessional rate of interest through state channelising agencies (SCAs) nominated by respective state government and union territories. We also provide project linked training provided for the skill development of the beneficiaries.

Which schemes are being implemented by NBCFDC?
NBCFDC provides loan under general loan scheme and micro finance. The beneficiaries can choose any activity. However, the schemes should be financially viable and technically feasible so that the beneficiary can run the project easily. Further, the schemes of the corporation have been categorised broadly into sectors such as agriculture and allied activities, small business, artisan and traditional occupation, transport sector and service sector and technical and professional trades and courses.

Are there any special schemes for women?
Yes, there are schemes that are only for women such as ‘New Swarnima’ that offers term loans and ‘Mahila Samriddhi Yojana’ under the micro-finance scheme.

Under the ‘New Swarnima Scheme’, we offer loans up to Rs 50,000 at an interest rate of four per cent per annum and no share contribution of the beneficiary is required.

In ‘Mahila Samriddhi Yojana’ the maximum loan limit is Rs 25,000 per individual in each self-help group and an interest rate of 4 per cent is charged per annum. Over 4.33 lakh women beneficiaries have benefited in various states from these special schemes.