Micro Credit Finance (NSFDC)
Microloan up to ₹1.25 lakh · 6.5% interest · SC individuals for micro enterprises
Micro Credit Finance by NSFDC (National Scheduled Castes Finance & Development Corporation) offers small loans up to ₹1.25 lakh to Scheduled Caste individuals with annual family income under ₹3 lakh, at an interest rate of just 6.5% — well below market rates.
About This Scheme
Micro Credit Finance by NSFDC (National Scheduled Castes Finance & Development Corporation) offers small loans up to ₹1.25 lakh to Scheduled Caste individuals with annual family income under ₹3 lakh, at an interest rate of just 6.5% — well below market rates.
Full official description
The scheme "Micro Credit Finance" is implemented by the National Scheduled Castes Finance and Development Corporation (NSFDC) under the Ministry of Social Justice and Empowerment, Government of India. Under this scheme, loans are provided to individuals from the Scheduled Caste community for units costing up to ₹1,40,000/-. The loans support income-generating activities such as running a betel leaf shop, bakery, candle making, cycle repair, goat rearing, beauty parlour, vegetable vending, incense stick making, fish vending, milch animal rearing, papad manufacturing, pickle manufacturing, tea shop, and other similar viable activities.
Benefits
- Loan amount: Up to ₹1,25,000 (90% of project cost)
- Interest rate: 6.5% per annum (from SCA to beneficiary)
- Repayment: Up to 3 years
- Purpose: Any micro-enterprise or self-employment activity
💡 Why Startups Should Care
NSFDC's micro credit is one of the most accessible entry points for SC entrepreneurs — ₹1.25 lakh with 90% of the cost covered, at 6.5%. The SCA network across Gujarat makes it locally accessible without requiring visits to state headquarters.
Who Can Apply (Eligibility)
Scheduled Caste individual, annual family income below ₹3,00,000 (rural or urban). Loan is disbursed through State Channelising Agencies (SCAs).
How to Apply
- Contact the district office of your State Channelising Agency (SCA) — the NSFDC works through SCAs in each state.
- Submit your application with personal details, proposed business plan, and required documents.
- The SCA verifies documents and forwards the application to NSFDC for loan sanction.
- Upon sanction, NSFDC disburses the loan through the SCA to your bank account.
- For tracking, follow up with your SCA's district office.
Frequently Asked Questions
What is NSFDC?
NSFDC stands for National Scheduled Castes Finance and Development Corporation. It was set up by the Government of India under Ministry of Social Justice & Empowerment (MOSJ&E) on 8th February, 1989 under Section 25 of the Companies Act, 1956 as a company 'not for profit'. Now, it is Section 8 Company (not-for-profit) under campanies Act, 2013.
What is the Contact Address of NSFDC?
NSFDC has its Head Office at Delhi and its full address and contact number is :- National Scheduled Castes Finance and Development Corporation 14th Floor, SCOPE Minar, Core 1 & 2, Laxmi Nagar, Delhi- 110 092 Tele: 011-22054392, 22054394, 22054396. Fax: 011-22054395 E-mail : support-nsfdc[@]nic[dot]in Website : www.nsfdc.nic.in It has three Liasion Centers at Mumbai, Kolkata, and Bengaluru.
What is the maximum loan amount provided under this scheme?
NSFDC provides loans up to 90% of the project cost, with a maximum amount of [?]1.25 lakhs.
What activities are eligible for funding under the scheme?
Eligible activities include running a betel leaf shop, bakery, candle making, cycle repair, goat rearing, beauty parlour, vegetable vending, incense stick making, fish vending, milch animal rearing, papad manufacturing, pickle manufacturing, tea shop, and other similar viable activities.
What is the interest rate charged under this scheme?
NSFDC charges interest at 2.5% from SCAs/CAs, which in turn charge 6.5% from the beneficiaries.
What is the repayment period for the loan under this scheme?
The loan must be repaid in quarterly installments within a maximum period of three years from the date of disbursement, including a 3-month moratorium period.
Who is eligible to apply for the Micro Credit Finance scheme?
The applicant must belong to a Scheduled Caste community, and the annual family income should be less than [?]3,00,000/-.
Can partnership firms and cooperative societies apply for the loan?
Yes, provided all members belong to the Scheduled Caste community and the annual family income of each member does not exceed [?]3,00,000/-.
Where can applicants apply for the loan?
Applicants should contact the District Office of State Channelizing Agencies (SCAs) or other Channelizing Agencies like Regional Rural Banks, Public Sector Banks, and NBFC-MFIs with whom NSFDC has signed Memorandums of Agreement.
Can applicants directly contact NSFDC for the loan?
No, applicants must apply through the concerned State Channelizing Agencies (SCAs) or Channelizing Agencies (CAs).
How are the loan amounts disbursed to the beneficiaries?
The loan amounts are usually disbursed through the SCAs or the respective Channelizing Agencies.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Passport-size photograph
- Aadhaar card
- Income certificate
- Caste certificate
- Residence proof
- Bank passbook or bank account details
- Any other documents as required