Lending and Training Programmes
LENDING AND TRAINING PROGRAMMES OF BACKFINCO
1. DIRECT LOANING SCHEME:
Backfinco advances loans to the members of the notified Backward Classes/ Economically Weaker Section out of Authorized Capital under Direct Lending Scheme at interest rate of 6% p.a. whose annual family income from all sources is less than Rs. 100000/- in rural areas and urban areas.
2. SCHEMES FOR THE WELFARE OF BACKWARD CLASSES
Govt. of India set up National Backward Classes Finance and Development Corporation (NBCFDC) in the year 1992 for implementing Self-Employment schemes through State Backward Classes Corporations. As per the Financing Pattern, 85% of the project cost as term loan is provided by NBCFDC, 10% is contributed by Backfinco out of Margin Money provided by the State Govt. and the remaining 5% is contributed by the beneficiary. NBCFDC provides Term Loan under following schemes:-
A) Term Loan Scheme
i) General Loan Scheme: -Under this scheme, loan assistance is available for various income generating activites in various sectors such as Agriculture and Allied Sector, Small Business/Artisan & Traditional Sector and Transport & Service Sector. NBCFDC provides term loan upto Rs. 5.00 Lac @ 3% p.a and Backfinco further advances @ 6% p.a.
ii) New Swarnime Scheme: -Under this scheme, loan assistance is available for women of Backward Classes to inculcate the spirit of self-reliance among them. NBCFDC provides upto 95% of the project cost and remaining 5% is contributed by Backfinco out of Margin Money provided by the State Govt. The maximum loan limit per beneficiary is Rs. 2.00 Lac at an interest rate of 5% p.a.
iii) Education Loan Scheme: -Under this scheme, loan assistance is available to the students of Backward Classes. The applicant should have obtained admission fro any professional or technical courses approved by appropriate agency such as AICTE, Medical Council of India, UGC etc. In a duly accredited/recognized institute and have minimum 50% marks in qualifying exam. Loans are given upto 90% of the course fees for studies in India and upto 85% of the course fees for studies outside India. Maximum loan limit per student for technical & professional courses in india is Rs. 10.00 Lac and Rs. 20.00 lac for studying abroad at an interest rate of 4% p.a. (3.5% p.a. for girl student). Repayment period shall commence in six months after completion of the course (18 months in case of medical courses).
B) Micro Finance Scheme
i) Micro Finance Scheme: -Under this scheme, loan assistance is available to Self Help Groups (SHGs) to provide credit facilities for the target group especially for mixed group beneficiaries. Loans are given upto 90% of the project cost. Maximum loan limit per Group is Rs. 15.00 lac and loan per beneficiary in SHG is Rs. 1.00 lac at an interest rate of 5% p.a. Under this scheme repayment period is 4 years.
ii) Mahila Samridhi Yojana: -Under this scheme, loan assistance is available to Self Help Groups (SHGs) to provide credit facilities for the target group especially for women beneficiaries. Loans are given upto 95% of the project cost. Maximum loan limit per Group is Rs. 15.00 lac and loan per beneficiary in SHG is Rs. 1.00 lac at an interest rate of 4% p.a. Under this scheme repayment period is 4 years.
3. SCHEMES FOR THE WELFARE OF MINORITY COMMUNITIES
Govt. of India set up National Minorities Development and Finance Corporation (NMDFC) in September 1994 for economic uplift of five notified minorities i.e. Sikhs, Christians, Muslims, Parsis and Budhists. On dated 27.1.2014 Ministry of Minority Affairs GOI also included Jain Community in Minority Communities. Besides this Punjab Government, Home Affairs and Justice Department (Minority Cell/Civil Defense Branch) also included Jain community into Minority community. In this way instead of 5 communities, now 6 Minority Communities i..e. Sikhs, Christians, Muslims, Parsis, Budhists and Jainies are notified as Minority Communities. As per 2001 Census figures, the Minority Population in Punjab is 62.91%. State Govt. nominated Backfinco as Nodal Agency to implement schemes in collaboration with NMDFC. Under NMDFC scheme the following schemes are being implemented by Backfinco:-
i.Term Loan Scheme
As per revised Lending Policy of NMDFC w.e.f. 1.4.2013, 90% of the project cost as term loan is provided by NMDFC, 5% by State Govt. /SCA as Margin Money and 5% by the beneficiary. NMDFC provides Term Loan to Backfinco at interest rate of 3% upto 10 Lacs and Backfinco further advances loan at 5% p.a upto Rs. 50000/- and at 6% upto Rs. 10 Lacs.
ii. Education Loan Scheme
NMDFC provides loans under Education Loan Scheme for the candidates belonging to Minority Communities for pursuing Short Term High Skill Development Courses, Professional and job oriented Degree Courses and for Post Graduate Courses at interest rate of 1% and Backfinco further advances loans to the beneficiaries at interest rate of 3-8% p.a. The maximum loan limit is Rs. 20 Lacs in India and Rs. 30 Lacs for studies in abroad (Foreign Country). The loan is repaid in 5 years (six month after the completion of study or getting job whichever is earlier).
iii Micro Finance Scheme
NMDFC also provides loans under Micro Finance Scheme belonging to Minority Communities. Loan up to Rs. 1.00 lac per member of SHG and Up to Rs.20.00 lacs for a group of 20 members in one SHG for setting up any Self Employment Venture.