J&K: Financing Schemes for Economic Upliftment of SC/ST, Backward Classes and minorities

The J&K SC,ST & BC Development Corporation, under department of employment(J&K) 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) and Minorities.

Objective:         

• To provide financial assistance for starting up small scale company to SC/ST, Backward Classes and minorities.
• To make them financial independent and uplift them.

Eligibility:

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

Benefits:

For SC/ST and BCs:

• 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.
• Direct financing in collaboration with NSFDC(National Scheduled Castes & Scheduled Tribes Finance and Development Corporation) and NBCFDC(National Backward Classes Finance and Development Corporation) is provided.The beneficiary is to contribute only 5-10% of the project cost. The rate of interest on such loans varies from 6% to 8.5% for SC, ST beneficiaries and 7-12% for BC beneficiaries. The wide range of feasible income generating units can be financed in trade, industry, agriculture or service sectors.

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.

Contact person:

District Manager,SC/ST/OCB Corp. Concerned District.

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