M/o SJ&E is Going to Implement a New Financial Model for Interest Subvention for Individual Beneficiaries as well as SHGs Comprising SC and OBC Categories

The Ministry of Social Justice and Empowerment is going to implement a new Financial  Model  for Interest Subvention for individual beneficiaries as well as the Self-Help Groups (SHGs) comprising exclusively of  SC and OBC categories.  National Scheduled Castes Finance &Development Corporation (NSCFDC) will be the implementing agency for SC SHGs/beneficiaries and the National Backward Classes Finance and Development Corporation (NBCFDC) will be implementing agency for OBC SHGs/beneficiaries.

The objective of the model is to provide direct benefit of lower rate of interest to the eligible SHGs formed under National Rural Livelihood Mission (NRLM) or National Urban Livelihood Mission (NULM) or NABARD/individual beneficiaries who have availed loans through Public Sector Banks (PSBs), Regional Rural Banks (RRBs) and similar financial institutions or can be referred as Lending Institutions.

Further, the Ministry is already implementing following two schemes vide which assistance is provided to underprivileged sections of the Society:

1.  ‘Dr. Ambedkar Interest Subsidy on Education Loan for Overseas Studies for Other Backward Classes and Economically Backward Classes: Under the Scheme, interest subsidy accrued  on  loan upto Rs.20.00 lakh is disbursed to beneficiaries by the Nodal bank.  The candidates having parental income upto Rs. 8.00 lakh per annum from all sources are eligible for loan under the Scheme.

2. NBCFDC provides loan at concessional rate of interest to underprivileged sections of Backward Classes having annual family income less than Rs. 3.00 lakh primarily for income generating activities to promote self-employment opportunities through State Channelizing Agencies (SCA) the maximum loan limit for income generating activities is up to Rs. 15.00 lakh.

This information was given by Minister of State for Social Justice and Environment Shri Krishan Pal Gurjar in a written reply in Lok Sabha today.