NBCFDC General Loan Scheme

What is the NBCFDC General Loan Scheme?

The NBCFDC General Loan Scheme is a concessional credit programme run by the National Backward Classes Finance and Development Corporation (NBCFDC), a company under the Ministry of Social Justice and Empowerment. NBCFDC provides financial assistance for the economic development of people belonging to the Backward Classes who live below double the poverty line, and the General Loan Scheme is its main term-loan product for self-employment and income-generating ventures.

According to the NBCFDC portal, the scheme lends up to Rs 15 lakh per beneficiary for a wide range of activities. NBCFDC finances up to 85% of the project cost, while the remaining 15% is contributed by the channel partner or the beneficiary. NBCFDC does not lend to individuals directly. It channels money through State Channelising Agencies (SCAs), the Backward Classes finance corporations of each state, and through channel partners such as scheduled banks, Regional Rural Banks and microfinance institutions, who in turn appraise applications and disburse loans to borrowers.

Key features

• Maximum loan of Rs 15 lakh per beneficiary.
• Interest charged to the beneficiary at 6% to 8% per year, based on loan size.
• Repayment in quarterly instalments over a maximum of 8 years, with up to a six-month moratorium on principal.
• Covers agriculture and allied activities, small business, artisan and traditional occupations, transport, services, and technical or professional trades and courses.

Who is eligible for the NBCFDC General Loan Scheme?

You can apply if:

• You belong to a Backward Class as notified by the Central Government or a State Government.
• Your annual family income does not exceed Rs 3 lakh from all sources.
• You have a viable income-generating activity, for example agriculture and allied work, a small business, an artisan or traditional occupation, a transport or service venture, or a technical or professional trade.
• You are of an age and standing acceptable to the lending channelising agency (age and residence norms are set locally).

You cannot apply if:

• You do not belong to a notified Backward Class, or you cannot produce a caste certificate.
• Your annual family income is above Rs 3 lakh.
• The purpose of the loan is not an eligible income-generating activity — the scheme is not a personal or consumption loan.
• You are a defaulter on an earlier NBCFDC or channelising-agency loan.

Because loans are routed through State Channelising Agencies and channel partners, each agency may add its own conditions on security, guarantors and residence. Confirm these with the SCA for your state before applying.

Interest rates and loan size

According to the NBCFDC General Loan flyer, the interest charged to the beneficiary is tiered by loan amount:

These are simple, concessional rates well below commercial lending rates, which is the core benefit of borrowing through NBCFDC rather than a bank on market terms.

What documents are required for the NBCFDC General Loan Scheme?

How to apply for the NBCFDC General Loan Scheme

NBCFDC works through State Channelising Agencies and channel partners, so the application is made offline at the agency level, not on a central portal.

1. Identify the State Channelising Agency (SCA) for your state, usually the State Backward Classes Finance and Development Corporation; or an NBCFDC channel partner bank, RRB or MFI operating in your district. The list of SCAs and channel partners is available on nbcfdc.gov.in.
2. Obtain the loan application form from the SCA or channel partner and fill it in with your personal details and the details of your proposed activity.
3. Attach the caste certificate, income certificate, Aadhaar, project report and bank passbook, and any security documents the agency asks for.
4. Submit the completed application to the SCA or channel partner, which will appraise the proposal for viability.
5. On sanction, the agency disburses the loan and gives you the repayment schedule of quarterly instalments over up to 8 years.

For queries, NBCFDC operates a toll-free helpline on 18001023399.

How the money reaches you

NBCFDC releases funds to the State Channelising Agency or channel partner, which adds its share and lends to you. Repayments you make to the agency are used to service the NBCFDC loan. This two-tier structure is why the application, approval and grievance process all happen at the agency, and why timelines and exact security requirements vary from state to state.

Help and where to check

• NBCFDC toll-free helpline: 18001023399
• NBCFDC portal: nbcfdc.gov.in, carries the scheme flyer, the list of State Channelising Agencies and channel partners, and application details.
• Your State Backward Classes Finance and Development Corporation for state-specific forms, security norms and status of your application.

NBCFDC also runs other products such as the Education Loan Scheme, Micro Finance Scheme, Mahila Samriddhi Yojana and the New Swarnima Scheme for women; if the General Loan does not fit your need, ask the SCA which product suits your activity and income.