Entrepreneurial Schemes of NBCFDC

The various Entrepreneurial Schemes of NBCFDC that are available to help potential entrepreneurs and small businesses in India can be found here. Eligibility criteria, benefits and success stories are all included in the article.

Table of Contents

Introduction

NBCFIDC is a specialized national level financial and industrial development bank which has committed to industrial development of India. Towards these goals, NBCFDC avail a number of enterprise development programs to promote entrepreneurship and the small and medium enterprises (SMEs). Such structures provide financial support, consultancy services and other assistance so that the entrepreneur can achieve his/her business goals.

The NBCFDC was well established under the Government of India in the Ministry of Social Justice & Empowerment for economically uplifts the businesses of backward classes and several economic related activities in India. Still another of its primary function is on business sustainability through extension of different kinds of loans and implementation of skills training. This piece will also focus on the type of business that NBCFDC supports with regards to the entrepreneurial schemes of NBCFDC with special emphasis on how it empowers the backward classes by making them financially independent through entrepreneurship.

Popular Entrepreneurs Schemes of NBCFDC

Credit-Linked Capital Subsidy Scheme (CLCSS):

Purpose: This is an option that provides capital subsidy to such persons who would wish to set up new industries or expansion of production lines.
Advantages: In turns reduces the amount of invested capital required thus enhances the financial factor and hence makes projects feasible from a financial perspective.
Eligibility: The target population comprises micro, small and medium manufacturing /service sector enterprises.
Case Study: CLCSS helped a small scale textile producer of Gujarat who purchased modern machineries and increased his production as well as exports.

Technology Development Fund (TDF):

Purpose: Aids research and development undertakings for technology by the entrepreneurs and SMEs for the innovations.
Benefits: North American funding for the development of technologies, the creation of prototypes as well as the commercialization of the market.
Eligibility: Any organization dealing with technology-based projects such as Start-ups, small and medium enterprises and research institutions.
Case Study: A TDF funded biotechnology start up in Bengaluru undertook the research for a new drug for a rare disease and this created a big interest among investors and there could be an opportunity to enter the market.

Micro-Finance Scheme:

Purpose: Financial assistance is provided to micro enterprises and women entrepreneurs.
Benefits: It provides affordable loans at the interest rates that are easy to pay back in order to help small businesses.
Eligibility: Micro-enterprises; women entrepreneurs; self-help groups, all of these are eligible.
Case Study: For instance, a rural woman entrepreneur from Uttar Pradesh has taken up microfinance loan for setting up of poultry farm which has positively impacted her family income and has also empowered other women in the same community.

Venture Capital Fund:

Goal: Invests into nascent firms that have great growth potential.
Benefits: Offers equity financing, mentorship, and networking opportunities
Eligibility: Startups in various sectors like technology, health care and renewable energy.
Case study: A Mumbai-based fintech firm received funding from NBCFDC to expand their business activities and introduce a new product which gained a lot of clients and market share.

Skill Development Scheme:

Thus, the intention behind the implementation of this training and skill development programs shall be to be offered to entrepreneurs as well as their employees.
Benefits: It makes business competitive since it boosts the ability of the employee to work.
Eligibility: Some of the target persons include;
Case Study: The skill development program was introduced in a manufacturing unit in Tamil Nadu and NBCFDC extended its backing to it. This has seen productivity improve as well as there being less turnover especially amongst employees and in the end there are enhanced production of quality products.

New Swarnima for Women

This is an exclusively women only scheme meant for women from the backward sections of the society who are below double the poverty line. They can borrow an amount up to of Rs. 1,00,000 at an interest of 5% per annum. NBCFDC comes forward with 95 percent project cost under this scheme

Saksham

Saksham is the term loan product offered to young professionals and this product is only targeted for the youths belonging to.
backward classes. The maximum amount which can be sanctioned as a loan for any beneficiary is Rs. 10 Lakh per beneficiary, with
loans up to Rs. 5 Lakh for 6% per annum interest rate and Loans exceeding Rs. 5 Lakh.
From Rs. 5 Lakh to Rs.10 Lakh with interest rate of 8% per annum. NBCFDC
This scheme subsidize 85% of the total cost of the project implemented by the selected organizations.

Shilp Sampada

The purpose of this scheme is to transform the backward classes into skilled human resources in technical field and entrepreneurial skills through training and financial assistance in the form of term loans for self employment in traditional crafts and handicrafts. This scheme is always helpful for artisans and handicraft persons of backward classes who were living below double the poverty line for availing loans up to Rs.10 lakh. Loans of maximum amount of Rs. 5 Lakh attract an interest rate of 6% per annum while loans for amount ranging from Rs. 5 Lakh to Rs. 10 Lakh attract a rate of interest of 8% per annum. Under this scheme, NBCFDC gives financial support of 85% of the project cost.

The scheme of Micro Finance for women also known as Mahila Samriddhi Yojana.

This branch of micro finance for women only is done by the State casual agencies through NGOs or self help groups. The amount of credit allowed to a beneficiary goes up to Rs. 50000 at an interest of 4% per annum from SCA to the beneficiary. NBCFDC in this scheme, bears 95 percent of the total project cost of the credit linked effective mean Britain fund.

Krishi Sampada

It is a unique scheme to help Krishi Sampada for providing concessional loans under micro-finance to the small farmers as well as vegetable vendors of the target group for their funding needed for Rabi, Kharif or any cash crop season. About the loan: loanee can get a loan of an amount of Rs. 50,000 @ an interest of 4% per annum. As said earlier the NBFCFDC supports 95% of the project cost under this scheme.

Eligibility Criteria for Entrepreneurial Schemes of NBCFDC

In order to get enrolled in NBCFDC’s entrepreneurial programmes, the applicant has to fall under the notified Backward Caste List of the state/centre. Moreover, the family income should not exceed double of the poverty line with the minimum of Rs. 300000 per annum irrespective of the area whether it is rural or urban.

Schemes: The requirements for qualification differ depending on the type of business, the cost of the project, the type of the area among others. In general, there is some requirements regarding the business plan, financial standing and experience of the SME or entrepreneur.

Most of the scholarships have an application process, which often requires applicants to submit a project proposal, balance sheet among other documents. NBCFDC’s personnel scrutinize and assess the applicants’ proposals with the aim of disbursement of funds.

Benefits for Entrepreneurial Schemes of NBCFDC

Financial Assistance: Gives you access to different types of funding such as loans, equity investment and grant.
Technical Guidance: Helps to provide specialized guidance and support with creating business strategies, running and managing businesses, and market research.
Networking Opportunities: Facilitates links between the businessmen and women and the industry players, investors and other players.
Skill Development: These documents support capacity building for training and other similar capacity building programs for the entrepreneurs and their teams.
Market Access: For instance, it can help in accessing both domestic and international markets to its clients.

Case Studies for Entrepreneurial Schemes of NBCFDC

Shri Sunil Kumar Yadav:

It can be considered as a success story because it shows how an inexperienced farmer who has no prior knowledge of dairy farming can overcome so many challenges within a year of starting his farming business.

Shri Sunil Kumar Yadav from the Uttar Pradesh has taken loan of Rs 5 Lakh from NBCFDC through Uttar Pradesh Scheduled Castes FI & DC (UPFC) under General Loan Scheme. He borrowed the money to start a dairy farming business and to buy high productive cows. Owing to his earnest effort and the loan received, Shri Yadav’s dairy farm became successful and he earns a good amount of money which helps him to feed his family and also, propose to expand his business.

Smt. Sunita Devi: A Study on Self Employment through Mahila Samriddhi Yojana Scheme

Smt. Sunita Devi a resident of Bihar, having obtained a loan of Rs. 30000 from NBCFDC availed this loan from Bihar scheduled castes & backward classes Development Corporation under Mahila samriddhi yojana. She used the loan to open a small shop in her village of grocery goods. Smt. With help of the loan and her entrepreneurship skills she was able to achieve her goal. Thus, Devi’s business expanded and she is now generating her reasonable income that would help her family. The Mahila Samriddhi Yojana that has been raising funds at a low-interest rate with flexible terms of repayment has been very useful for empowering Smt. Devi and many other women of backward classes to be financially independent.

FAQs

Who is eligible for Entrepreneurial Schemes of NBCFDC?

sme’s, start-ups, micro businesses, women led businesses and absolutely any research organization or company.

What kind of loan support does nbcfdc provide?

There are also others; loans, equity investment, grants, and capital subsidies.

What is a process of following while applying for theEntrepreneurial Schemes of NBCFDC?

Every intending NBCFDC grant or loan seeker is required to develop and submit to NBCFDC a project proposal, balance sheet and other formal requirements.

What do the customers stand to benefit by accessing the Entrepreneurial Schemes of NBCFDC?

Services provided by a business incubator can be categorized as the financial support, advisory services, connection services, capacity building services and market access services.

In other words, can one apply for several schemes at the same time from NBCFDC?

Yes, but this depends on the standards of the platform as well as the type of the business that one owns.

Conclusion

Entrepreneurial schemes of NBCFDC help in providing necessary impetus to small and medium enterprises development in India. Plotting to be and by offering financial support, and advisory services among other commodities, NBCFDC supports the spirit of entrepreneurship among people to enable them to set up businesses and help transform the economy of the country.