TERM LOAN ASSISTANCE BY NSKFDC DOUBLES DURING LAST TWO YEARS
The Term Loan assistance by the National
Safai Karamcharis Finance and Development Corporation (NSKFDC) has
doubled during the last two years. It has disbursed Rs. 134.12 crore
to about 62 thousand beneficiaries till the end of 2002-03 as compared
to Rs. 64.03 crore upto 31st March 2001. This includes
more than 45 thousand beneficiaries who have been assisted with
Rs. 33.60 crore under micro-credit finance scheme.
NSKFDC was set up by the Central Government in
1997 under the Ministry of Social Justice and Empowerment with
an authorised capital of Rs. 200 crore for all round socio-economic
upliftment of Safai Karamcharis including scavengers and their
dependents. The Corporation provides term loans at concessional
rate of interest to the target groups through 30 State Chanelising
Agencies in 27 states and 3 UTs. It provides term assistance for
projects costing upto Rs.5 lakh with rate of interest charged
at 3% from the SCA, which in turn charges 6% from the beneficiaries.
The Corporation also provides term loan assistance
upto Rs. 10 Lakh for sanitation projects related to income generating
activities like garbage/ sanitation waste disposal scheme, vacuum
loaders and for setting up Pay and Use Toilets. The rate of interest
for such assistance is 5% for the SCA and 8% for the beneficiaries.
NSKFDC finance upto 90% of project cost and the remaining 10%
is provided by the SCA as margin money or subsidy or promoters
contribution. Promoters’ contribution is not insisted for projects
costing upto Rs.2 lakh. The rate of interest charged under micro
finance assistance upto Rs. 25,000/- is 2% from the SCA and 5%
from the beneficiary. Although the beneficiary has to be a Safai
Karamcharis or Scavenger, the Corporation accords priority to
scavengers particularly those falling below the double poverty
line, women and disabled persons.
NSKFDC also provides educational loan upto Rs.
3 lakh. Rs. 75,000 per year is provided to students for pursuing
professional and technical education. The Corporation also provides
bridge loan against investment subsidy sanctioned or any other
source of funds sanctioned by any other recognized agency.
