NBCFDC: Loans up to Rs 25 lakh for entrepreneurship and education for backward classes

The National Backward Classes Finance and Development Corporation (NBCFDC), operating under the Ministry of Social Justice and Empowerment, is running various financial schemes for the upliftment of backward classes. The corporation's primary objective is to promote entrepreneurship, skill development, and education within these communities.

A senior official of the corporation stated that families with an annual income of up to Rs 5 lakh are eligible to avail of these schemes. Under the individual loan scheme, up to 85% of the project cost is covered, with a maximum loan limit set at Rs 25 lakh.

Regarding interest rates, it was explained that loans up to Rs 1.25 lakh carry an annual interest rate of 7%. For loans exceeding Rs 1.25 lakh and up to Rs 25 lakh, an annual interest rate of 8% is applicable.

The corporation also provides assistance of up to Rs 25 lakh for education loans. These loans carry an 8% annual interest rate and can be repaid over a period of up to 10 years, which includes the moratorium period.

Under the group loan scheme, self-help groups are also provided assistance of up to Rs 25 lakh per group. There is a limit of Rs 1.25 lakh per beneficiary, and up to 90% of the project cost can be covered. For this, at least 60% of the members in the group must belong to backward classes.

There is also a provision for a 1% rebate for beneficiaries who repay their loans on time, the benefit of which is shared equally between the channel partner and the beneficiary. The corporation has been operational since 1992 and continues to work towards economic development.

Interested applicants can contact the relevant channel partner in their district or apply through the registration portal on the official NBCFDC website. Further information can be obtained by visiting the corporation's website.