Ministry of Social Justice and Empowerment

Choose the scheme that fits you

• Women from Backward Classes living below double the poverty line: start with New Swarnima for Women. Mahila Samriddhi Yojana works through self-help groups and accredited NGOs.
• Young professionals from Backward Classes: Saksham.
• Artisans and handicraft workers from Backward Classes: Shilp Sampada.
• Members of a self-help group: the Group Loan Scheme.
• Individuals from notified Backward Classes starting an income-generating activity: the Individual Loan Scheme.
• Scheduled Caste entrepreneurs: NSFDC's Term Loan for larger units, or its Micro Finance Scheme, Aajeevika Micro-Finance Yojana or Udyam Nidhi Yojana for smaller ones.

Check the income test first

• Most Backward Class schemes test annual family income, and the caps are not the same across NBCFDC's pages.
• Ask the channel partner for the current cap before you spend time on an application.

How applications work

• Apply through the channel partner named for the scheme.
• Have a project cost estimate ready. Loans are sized against the project cost.

Before you plan around the loan

• Loan ceilings are quoted differently across sources for some schemes, so this page does not give them. Confirm the ceiling with the channel partner.
• Plan repayment in advance. NSFDC's Term Loan runs for up to seven years in quarterly instalments, after a six-month grace period.

The Ministry of Social Justice and Empowerment is a Government of India ministry, with its office at Shastri Bhawan in New Delhi. Its entrepreneurship loans are run through two corporations under the ministry, the National Scheduled Castes Finance and Development Corporation (NSFDC) and the National Backward Classes Finance and Development Corporation (NBCFDC). Every scheme described here is a loan that the borrower repays, not a grant.

Who runs the schemes

The ministry's website is owned and managed by its Department of Social Justice and Empowerment, which sits within the Ministry of Social Justice and Empowerment, Government of India. The ministry lists NSFDC and NBCFDC as corporations associated with it. NSFDC is a public sector undertaking under the ministry, engaged in promoting the economic empowerment of persons belonging to Scheduled Castes. NBCFDC is a Government of India undertaking under the ministry, and its loans are open to members of Backward Classes.

Who can apply

NSFDC's schemes are for persons belonging to Scheduled Castes. NBCFDC's schemes are for members of Backward Classes, as notified by the Central Government and State Governments from time to time. Several of NBCFDC's entrepreneurial schemes also apply an income test: the applicant's annual family income must be below double the poverty line. Some NBCFDC schemes name a narrower group, such as women from Backward Classes, young professionals, and artisans and handicraft workers.

The self-help group loan requires that at least 60% of the members belong to Backward Classes. The other members must come from weaker sections as NBCFDC defines them, including Scheduled Castes, Scheduled Tribes, minorities and persons with disabilities.

How the income test is stated

The income test is described in different ways. The entrepreneurial schemes page uses double the poverty line, while the individual and group loan pages set a fixed annual family income cap. NBCFDC's How to Apply page gives a lower fixed cap than the loan pages do. The sources do not agree, so check the current cap with the channel partner before you apply.

The schemes

NBCFDC runs seven loan schemes. New Swarnima for Women is for women from Backward Classes living below double the poverty line. Mahila Samriddhi Yojana and the Micro Finance Scheme are implemented by state channelising agencies through accredited NGOs and self-help groups. Saksham is a special term loan for young professionals from Backward Classes. Shilp Sampada pairs training with a term loan for self-employment in traditional crafts. The Individual Loan Scheme finances income-generating activities, and the Group Loan Scheme lends to self-help groups.

NSFDC runs four schemes listed on its site. Its Term Loan is for units larger than those its micro-finance scheme covers. Its Micro Finance Scheme is for very small units. The Aajeevika Micro-Finance Yojana provides prompt micro finance for small or micro business activities through selected NBFC microfinance institutions. The Udyam Nidhi Yojana provides loans for small or micro projects through cooperative societies, cooperative banks and small finance banks.

How the loans are sized and repaid

Loans are sized against the project cost, and the share of that cost a scheme funds differs between schemes. Each scheme sets a maximum loan per beneficiary. This page does not repeat those maximums, because published figures differ between sources for some schemes.

NSFDC's Term Loan is repaid in quarterly instalments within seven years. It includes a six-month moratorium, a grace period before repayment starts, which runs to 12 months for plantation and construction activities. The Micro Finance Scheme is repaid in quarterly instalments within three years of disbursement, including a three-month moratorium.

How to apply

Applications go through the channel partner that handles each scheme. For NBCFDC schemes, that is a state channelising agency or a bank, and for some schemes an accredited NGO or self-help group. Group loans are made through a nominated channel partner. Aajeevika loans go through selected NBFC microfinance institutions, and Udyam Nidhi loans go through cooperative societies, cooperative banks and small finance banks.

The ministry's contact office is at Shastri Bhawan, New Delhi 110001.