NOTIONAL ALLOCATION OF NSFDC FUNDS TO BE DISBURSED

  1. At the beginning of the each financial year, NSFDC notionally allocated funds to the State Channelizing Agencies (SCAs) / Channelizing Agencies (CAs), in proportion to the Scheduled Caste population of the country represented by the respective State/UT Administration.
  2. The status of notional allocation vis-à-vis actual for each financial year, as on 31st August, shall be reviewed by NSFDC before 15th of September of that year, and in case allocated funds have not been availed by any SCA / CA, the funds earmarked for the SCA / CA may be re-allocated to other States(s)/UT(s).
  3. From the financial year 2016-17 onwards, twenty percent of the notional allocation is aside for the cluster development. The targets for cluster development shall be reviewed on quarterly basis. The review shall be held by 10th of succeeding month after end of each quarter and the un-availed portion shall be transferred to performing partners.

UNIT COST FOR TERM LOAN

S. No.

Unit Cost

% of National Allocation

a.

Projects costing upto Rs 0.50 lakh

30%

b.

Projects costing above Rs 0.50 lakh and upto Rs 1.40 lakh

30%

c.

Projects costing above Rs 1.40 lakh and upto Rs 10.00 lakh

30%

d.

Projects costing above Rs 10.00 lakh and upto Rs 50.00 lakh

10%

Note

  1. The release of these funds to SCAs / CAs shall be subject to fulfillment of Prudential Norms such as availability of adequate Government/Bank Guarantee, no overdue beyond one year, and 80% utilization of previously disbursed funds.
  2. The following prudential norms are to be followed by CAs (RRBs) for disbursement of funds by NSFDC:
    1. Net NPA must be less than 15% for at least 3 out of last 6 years.
    2. The RRB must be in net profit for at least 3 out of last 6 financial years.
    3. Cumulative utilization must be at least 80% for disbursements till February, and 80% by preceding day for disbursements in March.
    4. Public Sector Banks must provide utilization certificates for interest switch-over and should not have any overdue at the time of disbursement.
  3. SOCIAL PRIORITIES

Further, the SCAs are required to endeavour to cover target groups in accordance with the priorities laid down as under:

  1. Educated unemployed/underemployed 50%
  2. Women 40%
  3. Others 10%

5. SECTORAL PRIORITIES

The SCAs are required to endeavour to achieve sectoral priorities in accordance with the percentages listed below:
Sectoral Allocation

  1. Agriculture & Allied 50%
  2. Service 40%
  3. Industry 10%

6. SECURITY

SCAs shall provide Government Guarantee/Bank Guarantee to the NSFDC for the funds sanctioned to them, preferably as block guarantee.