The “Term Loan Scheme” is a loan initiative launched by the Department of Social Justice & Special Assistance, Government of Maharashtra and funded by the National Scheduled Castes Finance and Development Corporation (NSFDC). This scheme is specifically designed to uplift economically disadvantaged members of the Charmakar community (including Dhor, Chambhar, Holar, Mochi, etc.) by supporting their educational, economic, and social advancement. In addition, the scheme assists in the production of various types of footwear and leather goods for supply to government departments and sale in the open market.
Benefits
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Loan Amount:
NSFDC provides term loans ranging from ₹1,00,000 to ₹2,50,000 for various schemes, with separate limits applicable for vehicle loans. -
Project Financing Structure:
- NSFDC finances 75% of the project cost.
- The corporation contributes 20% as a Seed Loan.
- A subsidy of ₹10,000 is provided.
- The remaining 5% of the project cost is contributed by the beneficiary.
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Interest Rates:
- For loans up to ₹5,00,000: NSFDC charges 7% per annum, while the corporation charges 4% per annum.
- For loans above ₹5,00,000: NSFDC charges 8% per annum, and the corporation continues to charge 4% per annum.
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Repayment Terms:
Loan instalments are payable monthly over a period of up to 60 months.
Eligibility
- The applicant must be a permanent resident of Maharashtra.
- The applicant should belong to the Charmakar Community.
- The applicant’s age should be between 18 and 50 years.
- For the 50% Subsidy Scheme and Margin Money, the applicant’s annual income should be below the poverty line.
- The applicant must provide an Income and Caste Certificate from an authorized government officer.
- The applicant should have adequate knowledge of the business for which the loan is being applied.
- For the NSFDC Scheme:
- Income should be below ₹98,000 for rural areas.
- Income should be below ₹1,20,000 for urban areas.
Application Process
Offline
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Visit the District Office:
During office hours, the interested applicant should visit the District Office of the Leather Industries Development Corporation of Maharashtra (LIDCOM) and request a hard copy of the prescribed application form from the concerned authority. -
Fill in the Application:
Complete the application form by filling in all mandatory fields, affix a passport-sized photograph (signed across if required), and attach copies of all mandatory documents (self-attested if required). -
Submit the Application:
Submit the duly filled and signed application form along with the required documents to the concerned authority within the prescribed period (if any). -
Obtain Acknowledgment:
Request a receipt or acknowledgment from the concerned authority. The receipt should include essential details such as the date and time of submission and a unique identification number, if applicable.
Documents Required
- Aadhaar Card.
- Caste Certificate.
- Annual Income Certificate.
- Ration Card.
- Passport-sized Photograph of the applicant and his/her spouse.
- Bank Passbook.
- Detailed Project Report.
- Relevant Loan Documents.
Frequently Asked Questions
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What is the Term Loan Scheme?
A loan initiative aimed at supporting the socio-economic advancement of the Charmakar community in Maharashtra. -
Who is eligible to apply for the Term Loan Scheme?
Only permanent residents of Maharashtra belonging to the Charmakar community, aged between 18 and 50 years with an annual income below the poverty line, and who can provide the necessary income and caste certificates. -
What is the maximum loan amount provided under this scheme?
NSFDC provides term loans ranging from ₹1,00,000 to ₹2,50,000. -
What is the interest rate on the term loan?
For loans up to ₹5,00,000, NSFDC charges 7% per annum (with 4% charged by the corporation); for loans above ₹5,00,000, NSFDC charges 8% per annum (with 4% by the corporation). -
Are there different interest rates for loans above ₹5,00,000?
Yes, loans above ₹5,00,000 are charged at 8% per annum by NSFDC. -
How is the loan amount structured?
The project cost is financed as follows: 75% by NSFDC, 20% as a Seed Loan by the corporation, with a ₹10,000 subsidy, and the remaining 5% contributed by the beneficiary. -
Is there a subsidy component in this scheme?
Yes, a subsidy of ₹10,000 is provided. -
What are the repayment terms for the loan?
Loan instalments are to be paid monthly over a period of up to 60 months. -
What types of business activities are covered by this scheme?
The scheme supports production in sectors such as footwear and leather goods manufacturing, among other agri-allied activities. -
Do applicants need to reside in Maharashtra?
Yes, only permanent residents of Maharashtra are eligible.