National Scheduled Tribes Finance and Development Corporation (NSTFDC), extends concessional loans to Scheduled Tribe persons for undertaking income generation activities
The National Scheduled Tribes Finance and Development Corporation (NSTFDC), a PSU under the Ministry of Tribal Affairs, extends concessional loans to the eligible Scheduled Tribe persons for undertaking income generation activities / self-employment as per the schematic norms. The schemes of NSTFDC are implemented across the country. The prominent schemes of NSTFDC are given as under:
Term Loan Scheme: NSTFDC provides Term Loan for viable projects costing upto ₹50.00 lakh per unit. Under the scheme, financial assistance is extended upto 90% of the cost of the project and the balance is met by way of subsidy/ promoter contribution/ margin money.
Adivasi Mahila Sashaktikaran Yojana (AMSY): This is an exclusive scheme for economic development of Scheduled Tribes Women. Under the scheme, NSTFDC, provides loan upto 90% for projects costing upto ₹2.00 lakh. Financial assistance under the scheme is extended at highly concessional rate of interest of 4% per annum.
Micro Credit Scheme for Self Help Groups (MCF): This is an exclusive scheme for Self Help Groups for meeting small loan requirement of ST member. Under the scheme, the Corporation provides loans upto ₹50,000/- per member and maximum ₹5 Lakh per Self Help Group (SHG).
Adivasi Shiksha Rrinn Yojana (Education Loan Scheme): This is an Education loan scheme to enable the ST students to meet expenditure for pursuing technical and professional education including Ph.D. in India. Under this scheme, the Corporation provides financial assistance upto ₹10.00 lakh per eligible family at concessional rate of interest of 6% per annum. The students eligible for interest subsidy from Ministry of Human Resource Development, Govt. of India, during the moratorium period i.e. course period plus one year after completion of course or six months after getting the job, whichever is earlier.
Margin Money Support Scheme for ST Entrepreneurs: In order to finance projects under the Stand-Up India Scheme of Government of India, a separate scheme titled “Margin Money Support Scheme for ST Entrepreneurs” has been formulated in December 2020. Under this scheme, the eligible ST Entrepreneurs are allowed to avail financial assistance of NSTFDC to the extent of 15% of the total project cost under Stand-Up India Scheme.
NSTFDC extend its loan through the implementing agencies. No instance has come to the notice of the Ministry of Tribal Affairs where NSTFDC has rejected any proposal of the implementing agencies fulfilling the loan disbursement criteria of NSTFDC.
NSTFDC, from time to time, in association with its implementing agencies conduct Awareness Programmes for dissemination of information about NSTFDC and its schemes.
NSTFDC notionally allocates target of disbursement of funds to the States/ UTs in proportion to ST population against the fund availability. During last three financial years, NSTFDC disbursed funds exceeding the notional allocation made for the respective years, which indicates effectiveness of Awareness Programmes in generation of loan applications.
This information was given by the Minister of State for Tribal Affairs Smt. Renuka Singh Saruta in a in the Lok Sabha today.