FINANCING SCHEMES   FOR ECONOMIC UPLIFTMENT OF WEAKER SECTIONS.

FINANCING SCHEMES   FOR ECONOMIC UPLIFTMENT OF WEAKER SECTIONS.

 The J&K SC,ST & BC Development Corporation undertakes a wide range of activities for socio-economic upliftment of the weaker section of the society belonging to scheduled Castes (SC), Scheduled Tribes (ST), Backward Classes (BCs) Scavengers and Minorities.

 1.    ELIGIBILITY:

  1.                   Permanent residents of J&K who belong to notified Scheduled Castes, Scheduled Tribes, Backward Classes, Minorities are eligible for assistance under different schemes of the Corporation for setting up viable income generating units.

2.                   For Loans/Subsidies etc. under bank tie-up schemes the annual family income of the applicant should be below the poverty line. For assistance under direct financing schemes, the annual family income of the applicant must be below double the poverty line;

3.                   The applicant should not be a defaulter with any financial institution. Any loan drawn by the applicant from any financial institution must be liquidated before he can be considered for assistance by the Corporation.

4.                   Any applicant for schemes involving vehicles should possess a valid driving licence for the type of vehicle applied for.  

2.                   SCHEMES FOR SC, ST AND BCs:  

A)                  LOANING WITH BANK TIE-UP

    Under the annual action plan of the Lead Bank Scheme, the Corporation arranges, in each district, allocation of a certain defined amount of credit to be advanced by different commercial/rural/scheduled banks to beneficiaries sponsored by it.

                   The Corporation pays subsidy to the extent of 50% of the unit cost subject to a maximum of Rs.5, 000/- per SC, ST beneficiary and 33.33% subject to a maximum of Rs.3,000/- in case of BCs. The rest is bank-loan to be repaid by the beneficiary in easy installments over a period of time varying from scheme to scheme, For loans involving higher unit cost, interest subsidy is also available in addition to the normal subsidy. In such cases, an amount of 25% of the unit cost is kept in fixed deposit with the financing bank and the interest earned is shared between the beneficiary and the Corporation in the ratio of 60:40.

                   Any eligible person desirous of establishing a feasible project can apply to the District Manager of the Corporation in the prescribed form available free of cost. The Corporation field staff will conduct a survey to determine the suitability/feasibility of the proposed activity and the genuine of the beneficiary. The cases deemed fit will be sponsored to the banks in the concerned area for sanction of loan. On receipt of the sanction from the bank, the Corporation will realize subsidy/margin money to the bank concerned. The bank may withhold disbursement of the sanctioned loan till it receives the subsidy component from the Corporation. The income generating assets will be handed over to the beneficiary in presence of the committee comprising of the bank Manager, District Manager of the Corporation, representative of the insurance company and the concerned Vet. Asstt. Surgeon in cases involving animals, District Manager of the Corporation is fully empowered to monitor the running of all units so established.  

B)                  DIRECT FINANCING IN COLLABORATION WITH NSFDC, NBCFDC & NKSFDC.

The Corporation is the channelizing agency for the flow of the credit from the National Scheduled Castes & Scheduled Tribes Finance and Development Corporation (NSFDC) and National Backward Classes Finance and Development Corporation (NBCFDC) to members of SC, ST and BC communities living below double the poverty line, who also fulfill other eligibility conditions outlined above.

                At present term loan assistance is considered for the applications received in response to the advertisement issued from time to time in respect of identified schemes for which loan arrangements are finalized with apex Corporations. The beneficiary is to contribute only 5-10% of the project cost. The rater of interest on such loans varies from 6% to 8.5% for SC, ST beneficiaries and 7-12% for BC beneficiaries.

                The selection is made, on the basis of the field reports furnished by the District Manager, by an implementation committee constituted for the purpose. The committee may adopt any method of selection as it deems fit depending on the type of scheme. The distribution of the units is guided by the population proportion of the SC, ST and BCs in the different districts of the State.

                The selected beneficiary has to enter into legal agreement with the corporation for the amount of loan sanctioned, furnish two sureties on prescribed surety bonds and a deed of hypothecation of the assets and complete all such formalities as the management may prescribe from time to time. All payments are made directly to the seller/authorized agency and only the asset will be given to the beneficiary.

                The implementation of the scheme is a time bound affair in which applications on prescribed form is invited upto a certain date. When the loaning formalities are completed for one lot, applications are invited again as son as the apex corporations see letters of intent for implementation of more schemes.

                The wide range of feasible income generating units can be financed in trade, industry, agriculture or service sectors.

  SCHEMES FOR MINORITIES

                For male members of the economically backward sections amongst Muslims, Sikhs, Christians, Budhists and Zohrastians living below double the poverty line, the corporation finances income generating units in collaboration with National Minorities Development and Finance Corporation (NMDFC). For female members of these communities the assistance is being provided by J&K Women’s Development Corporation. The applicant should fulfill all eligibility criteria as outlined above.

   NATIONAL SCHEME FOR LIBERATION AND REHABILI-TATION OF SCAVENGERS AND THEIR DEPENDENTS.

                The Corporation has been entrusted with the responsibility to act as nodal agency for rehabilitation of the persons who are engaged in the occupation of manually removing the night soil and filth, and their dependents, by providing them financial assistance to take up alternative and dignified occupations in trade, agriculture and service sectors.

                SALIENT FEATURES:

 1.                   TRADING:-

                      The Corporation can organize training in identified trades for scavengers and their dependents at the nearest training institution/center of the State/Central Government or an NGO. The cost of training per head shall be upto Rs.500/- per month. The maximum duration of the training shall be six months. Stipend @ Rs.150/- per month is paid out of the monthly training expenses of Rs.500/-. The training can be in trades like Cutting,

  Motor Winding, Carpentry, Computers, House wiring, motor driving etc.  

2.                   FINANCIAL ASSISTANCE:-

                       The credit is made available to the applicants for establishment of the projects involving unit cost of below Rs.50,000/-. The scheme provides for payment of subsidy @ 50% of the unit cost subject to a maximum of Rs.10,000/-. 15% margin money loan @ 4% interest and the remaining cost of the unit to be met from the bank loan.

  Contact person:

 District Manager,

SC/ST/OCB Corp. Concerned District.                                                                                

                                                                                                                         


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