The Aajeevika Micro-Finance Yojana (Livelihood Microfinance Scheme) is a credit-based initiative by the Ministry of Social Justice and Empowerment designed to support Scheduled Caste (SC) entrepreneurs. This scheme aims to provide prompt and need-based micro finance to eligible SC persons at reasonable interest rates through Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIs). The funds enable beneficiaries to undertake small or micro business activities, thereby fostering self-employment and economic empowerment.
Benefits
- High Loan Coverage: Receive loans covering up to 90% of the project cost (max Rs.1,40,000).
- Favorable Interest Rates: Competitive interest rates with additional rebates for women and timely repayment incentives.
- Interest Subvention: Benefit from an interest subvention of 2% per annum on timely repayments.
- Repayment Flexibility: Repayment in quarterly installments over a period of up to 3½ years with a short moratorium.
- Second Loan Option: Opportunity to avail further loans after successful repayment of the initial loan.
SC Entrepreneurs Loan Scheme Eligibility
- Government Business Loan for SC – Target Group:
- The scheme is exclusively for entrepreneurs belonging to the Scheduled Caste category.
- Eligible beneficiaries must have an annual family income of up to Rs.3.00 lakhs.
- NBFC-MFI Eligibility:
- NBFC-MFIs must be registered with the RBI, comply with all RBI norms for micro finance, have a continuous profit record for three years, maintain low non-performing assets (NPA), and meet other prudential and operational criteria.
Application Process
Apply for Microfinance Support Now- Offline Application
- Contact a Channelising Agency:
- Interested eligible persons should contact their nearest channelising agency. (For details, visit: NSFDC Channel Partners)
- Obtain and Fill the Application Form:
- Applicants must download the application format from the NSFDC website (e.g., Term Loan Application Form (English)) and complete it with necessary business details.
- Submission:
- Submit the filled application form along with the required documents to the district office of the respective State Channelising Agency (SCA), Regional Rural Bank (RRB), Public Sector Bank, or NBFC-MFI.
- Project Appraisal:
- The channelising agency scrutinizes the application and forwards viable proposals along with recommendations to NSFDC.
- Approval and Sanction:
- Approved project proposals are issued a Letter of Intent (LOI) along with terms and conditions. Upon acceptance, funds are disbursed to the channelising agency, which then releases them to the beneficiary.
Documents Required
- Application in NSFDC’s Format:
- Complete business details, along with copies of caste certificate, income certificate, and experience details.
- Indicative Documents:
- Aadhaar Card (optional)
- Income Certificate
- Caste Certificate
- Bank Account Statement
Frequently Asked Questions
Q1: What is the moratorium period?
A1: The moratorium period is 3 months in addition to the overall repayment period, allowing beneficiaries a grace period before repayment begins.
Q2: Does the scheme provide loans to all Scheduled Caste persons?
A2: The scheme is targeted at Scheduled Caste entrepreneurs with an annual family income of up to Rs.3.00 lakhs who intend to pursue small income-generating activities.
Q3: How does the scheme provide assistance?
A3: Assistance is provided in the form of credit-based loans covering up to 90% of the project cost for establishing a small business, along with favorable interest rates and an interest subvention incentive for timely repayments.
Q4: With what type of projects can I avail this scheme?
A4: The scheme supports small income-generating activities that enable beneficiaries to pursue self-employment opportunities.