NBCFDC Individual Loan Scheme
Fact-checked against official sources, reviewed by Aapt Dubey
5 min read · 4 official sources
NBCFDC's pattern of finance in force from 1 April 2025 has two loan schemes, the Individual Loan Scheme and the Group Loan Scheme.
The NBCFDC Individual Loan Scheme lends up to Rs 25 lakh to Backward Class members with family income up to Rs 5 lakh a year, for an income-generating activity or for education. Interest is 7% on loans up to Rs 1.25 lakh and 8% above that. Apply through your State Channelising Agency, a partner bank or NBCFDC's online registration.
| Ministry | Ministry Of Social Justice and Empowerment |
|---|---|
| Benefit | Concessional loan of up to Rs 25 lakh at 7% (up to Rs 1.25 lakh) or 8% a year, with NBCFDC funding 85% of the project |
| Maximum benefit | Rs 25 lakh per beneficiary |
| Application mode | Offline at the district office of a State Channelising Agency or partner bank; online registration on nbcfdc.gov.in is forwarded to them |
| Helpline | 18001023399 |
| Official website | https://nbcfdc.gov.in/nbcfdc/web/en/individual-loan-scheme |
What is the NBCFDC Individual Loan Scheme?
The NBCFDC Individual Loan Scheme is a concessional loan for members of Backward Classes, run by the National Backward Classes Finance and Development Corporation (NBCFDC), a Government of India undertaking under the Ministry of Social Justice and Empowerment. Under NBCFDC's pattern of finance in force from 1 April 2025, it is one of only two loan schemes the corporation runs; the other is the Group Loan Scheme for self-help groups.
According to the NBCFDC portal, loans under the Individual Loan Scheme can be given for any activity with potential for sustainable income, following the lending agency's own process, and also for education. The maximum loan is Rs 25 lakh per beneficiary. NBCFDC funds 85% of the project and the channel partner or beneficiary brings 15%.
NBCFDC does not lend directly to individuals. It lends to channel partners: State Channelising Agencies (usually the state Backward Classes finance corporation), Regional Rural Banks and public sector banks. They appraise your application, add their share and pay the loan to you. Banks can also draw refinance from NBCFDC for eligible borrowers' outstanding loans, which must be credited to the borrower's Aadhaar-linked loan account within 10 working days.
Who is eligible for the NBCFDC Individual Loan Scheme?
You can apply if:
- You belong to a Backward Class notified by the Central Government or your State Government.
- Your annual family income is up to Rs 5 lakh.
- You want the loan for an income-generating activity, such as farming and allied work, a shop, a trade or craft, a vehicle or a service business, or for education at an accredited institute after scoring at least 50% in the qualifying exam.
You cannot apply if:
- You do not belong to a notified Backward Class.
- Your annual family income is above Rs 5 lakh.
- The loan is for consumption or personal use rather than an income-generating activity or education.
- The lending agency's appraisal finds the activity not viable; NBCFDC loans follow the channel partner's due process.
Each State Channelising Agency or bank may add its own conditions on age, residence, security and guarantors, so check with the agency in your district.
Interest rates and repayment
According to NBCFDC's pattern of finance (in force from 1 April 2025):
| Purpose and loan size | NBCFDC to channel partner | Channel partner to you | Repayment |
|---|---|---|---|
| Income generation, up to Rs 1.25 lakh | 4% a year | 7% a year | 4 years |
| Income generation, Rs 1.25 lakh to Rs 25 lakh | 5% a year | 8% a year | 7 years |
| Education, up to Rs 25 lakh | 5% a year | 8% a year | Up to 10 years, including a 5-year moratorium |
The moratorium is one quarter for income-generating loans. A timely payment rebate of 1% a year is shared equally between the channel partner and the borrower, so paying on time lowers your effective rate.
NBCFDC Individual Loan Scheme or Group Loan Scheme?
| Point | Individual Loan Scheme | Group Loan Scheme |
|---|---|---|
| Borrower | One person | Self-help group with at least 60% OBC members, rest from other weaker sections |
| Maximum loan | Rs 25 lakh per person | Rs 1.25 lakh per member, Rs 25 lakh per group |
| NBCFDC share | 85% | 90% through SCAs or banks |
| Rate to borrower | 7% or 8% | 7% through SCAs or banks, 16% through NBFC-MFIs |
| Repayment | 4, 7 or 10 years | 3 years |
What documents are required?
| Document | Mandatory | Notes |
|---|---|---|
| Caste certificate | Yes | From the Tehsildar, SDM, Collector or other competent authority |
| Income certificate | Yes | Up to Rs 5 lakh a year; self-certified income endorsed by a gazetted officer or bank manager is accepted |
| Aadhaar | Yes | Identity, address and loan account linking |
| Project report or activity details | Yes | Cost, expected income and repayment plan |
| Admission proof and marksheet | Education loans | Accredited institute, at least 50% in qualifying exam |
| Bank account details | Yes | For disbursal and repayment |
| Security or guarantor papers | If asked | Set by the lending agency |
How to apply for the NBCFDC Individual Loan Scheme
- Find your channel partner. Contact the District Collector's office, or the district manager of your State Channelising Agency, Regional Rural Bank or public sector bank. NBCFDC publishes lists of State Channelising Agencies and partner banks on its website.
- Or register online. Fill in the registration on the NBCFDC website. NBCFDC forwards your request to the concerned agency or bank and informs you.
- Get the prescribed form from the channel partner's district office where you normally live, and fill it in. State clearly the activity you want to take up, your choice of vocation and any training you need.
- Attach the documents: caste and income certificates, Aadhaar, project details or admission papers, and bank details.
- Submit and get the application appraised. The agency checks your eligibility and the viability of the activity, and decides the amount and security.
- Receive the loan in your account after sanction, along with the repayment schedule. Repay on time to earn the rebate.
Common reasons a loan is held up
- Income certificate above the limit or more than a year old.
- Caste certificate not from a competent authority, or showing a community not on the notified list for your state.
- Vague project report with no costs or income estimate.
- Earlier loan default with the same agency or bank, which the agency will check during appraisal.
- No margin money. NBCFDC funds 85%; if the agency does not cover the other 15%, you must bring it.
Where to get help
- NBCFDC toll-free helpline: 18001023399 (10 am to 5 pm on weekdays)
- NBCFDC office: 5th Floor, NCUI Building, 3 Siri Institutional Area, August Kranti Marg, New Delhi 110016, phone 011-45854400
- Your State Channelising Agency or partner bank branch for forms, status and repayment.
Documents required
Frequently asked questions
How much can I borrow under the NBCFDC Individual Loan Scheme?
Up to Rs 25 lakh per beneficiary. NBCFDC funds 85% of the project and the channel partner or the borrower brings the other 15%. The amount actually sanctioned depends on the agency's appraisal of your project.
What is the interest rate?
7% a year on income-generating loans up to Rs 1.25 lakh, and 8% a year on loans from Rs 1.25 lakh to Rs 25 lakh and on education loans. A timely payment rebate of 1% a year is shared equally between the channel partner and the borrower.
How long do I get to repay?
4 years for loans up to Rs 1.25 lakh and 7 years for larger income-generating loans, after a moratorium of one quarter. Education loans are repaid within 10 years, including a 5-year moratorium.
What is the income limit?
Annual family income up to Rs 5 lakh, according to NBCFDC's Individual Loan Scheme page. NBCFDC's older How to Apply page still mentions Rs 3 lakh, so carry an income certificate and ask the agency which limit it is applying if there is a dispute.
Has the NBCFDC General Loan Scheme been replaced?
NBCFDC's pattern of finance in force from 1 April 2025 lists only two schemes, the Individual Loan Scheme and the Group Loan Scheme, so individual borrowers now apply under the Individual Loan Scheme. Women's self-help groups borrow under the Group Loan Scheme.
Can I apply online?
Yes, you can register on the NBCFDC website. NBCFDC forwards the request to the concerned State Channelising Agency or bank and informs you. The loan is still appraised and paid by that agency, not by NBCFDC.
Can I get an education loan?
Yes, up to Rs 25 lakh at 8% a year, if you have admission to an accredited or recognised institute and scored at least 50% in the qualifying examination.
Related schemes in Loans & Financial Services
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|---|---|---|---|
| NCDC Digital Sahakar Scheme | Registered cooperative societies, FPOs, FFPOs and federated SHG cooperatives | No fixed loan ceiling, project cost capped at Rs 1 crore (society operating 3 months to 1 year), Rs 3 crore (1 to 3 years), uncapped beyond 3 years | Apply |
| NCDC Nandini Sahakar Scheme | Women cooperative societies, and cooperatives with at least 50% women members | No fixed ceiling, project cost capped at Rs 1 crore (society in operation 3 months to 1 year), Rs 3 crore (1 to 3 years) and unlimited beyond 3 years | Apply |
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| New Swarnima Scheme for Women | Women of notified Backward Classes (now covered by the Individual Loan Scheme, family income up to Rs 5 lakh) | Rs 25 lakh under the Individual Loan Scheme (old New Swarnima limit was Rs 2,00,000) | Apply |
| NHDP: Concessional Credit / Weaver MUDRA Scheme | Handloom weavers and weaver entities with a Pehchan/weaver identity card | Margin money up to Rs 25,000 per weaver; loans up to Rs 10 lakh under MUDRA | Apply |
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| Mission Solar Charkha | - | Capital subsidy up to 35% of admissible cluster project cost | Apply |
| Pradhan Mantri Jan Dhan Yojana (PMJDY) | Unbanked Indian resident adults | Rs 2 lakh accident insurance cover on the RuPay debit card | Apply |
| Micro Finance Scheme of NMDFC | Members of Self Help Groups from notified minority communities | Up to Rs 1.5 lakh per SHG member under Credit Line-2 (Rs 1 lakh under Credit Line-1) | Apply |
More from the Ministry Of Social Justice and Empowerment
| Scheme | Who it's for | Benefit amount | Where to apply |
|---|---|---|---|
| Persons With Disabilities Scheme In Colleges: Financial Assistance To Visually Challenged Teachers | Visually challenged permanent teachers in colleges recognised under Sections 2(f) and 12B of the UGC Act | Rs 36,000 per year (Reader and teaching aids combined) | Apply |
| NBCFDC General Loan Scheme | Backward Class members with annual family income up to Rs 5 lakh starting an income-generating activity or studying | Rs 25 lakh per beneficiary (Individual Loan Scheme) | Apply |
| PM-SPECIAL: Training of Geriatric Caregivers (PM-STGC) | People under 40 seeking free certified training as professional caregivers for senior citizens | Free training (no cash benefit to trainee) | Apply |
| National Awards for Empowerment of Persons with Disabilities: Divyangjano Ke Liye Sarvshrestha Placement Agency | - | Non-monetary (certificate and shield) | Apply |
| Pre-Matric Scholarships to the Children of Those Engaged in Occupations Involving Cleaning and Prone to Health Hazards | Children in Classes 1 to 10 whose parent or guardian is a manual scavenger, tanner, flayer, waste-picker or hazardous cleaning worker, irrespective of caste or religion | Rs 8,000 per year (hostellers, Classes 3 to 10), plus 10% for Divyang students | Apply |
| National Award For Senior Citizens (Vayoshreshtha Samman): Creative Art | Senior citizens aged 60 or above who have excelled in the creative arts | Rs 2.5 lakh cash award with citation and memento | Apply |
Official forms & downloads
Links to official government PDFs and portals for this scheme.
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Sources
This guide was checked against these official pages:
- nbcfdc.gov.in (nbcfdc.gov.in/nbcfdc/web/en/individual-loan-scheme)
- nbcfdc.gov.in (nbcfdc.gov.in/nbcfdc/web/en/loans-pattern-of-finance)
- nbcfdc.gov.in (nbcfdc.gov.in/nbcfdc/web/en/howapply)
- nbcfdc.gov.in (nbcfdc.gov.in/nbcfdc/web/en/contact-us)
Fact-checked by Aapt Dubey
Last fact-checked: 26 October 2026