Chapter – 13 (Manual – 12)

The Manner of Execution of Subsidy Programmes

13.1 The schemes of NMDFC do not include any subsidy component. NMDFC is, however, extending financial assistance in the form of grant for meeting expenditure on implementation of following activities:
 

1. Promotion and Stabilisation of SHGs

NMDFC assists selected NGOs for promotion and stabilisation of Self Help Groups of members of minority communities living below double the poverty line so that the micro credit is extended to the members through the SHGs thus formed. This assistance is provided under the scheme of Interest Free Loan. After the job is satisfactorily done by the NGO as per the sanction, loan is considered as repaid as per the norms given in the scheme. At present, the scheme envisages financial assistance to the extent of Rs.4300 per SHG of 20 members to be formed. The NGOs eligible under the Scheme of Micro Financing and having good potential for chanelising micro credit to the minorities in their jurisdiction but having no minority SHGs and also having constraints of resources for formation of SHGs are considered for this assistance.

2. Vocational Training Programme

SCAs of NMDFC are encouraged to organise vocational training programmes for skill upgradation of the members of minority communities. NMDFC meets 85% of the approved expenditure of the SCA on organisation of vocational training as grant under the Scheme of Vocational Training.

3. Marketing Exhibitions

SCAs of NMDFC as well as NGOs are encouraged to organise marketing exhibitions at various locations in the country for sale of products of the artisans of the target group. NMDFC meets 85% of the prior approved expenditure of SCAs/NGOs on organisation of marketing exhibition under the Scheme of Marketing Assistance.

4. Mahila Samridhi Yojana

The Scheme of Mahila Samridhi Yojana envisages training to group of women in women friendly production oriented trades which is linked with micro-credit after the training. NMDFC encourages SCAs as well as NGOs for implementation of the schemes. SCAs are assisted in meeting their 85% of the expenditure on training while NGOs are assisted in meeting 100% expenditure on training under the Scheme of Mahila Samridhi Yojana.


5. Computerisation of SCAs

SCAs of NMDFC are assisted by way of reimbursement of their expenditure to the extent of Rs.5.00 lacs each on computerisation, networking and online connectivity with NMDFC under the Scheme of EDP Grant.

6. 1% Additional Interest Margin

Expenditure of SCAs of NMDFC on publicity and advertisement, infrastructure building, surveys, trainings and recovery management is reimbursed to the extent of their entitlement under the Scheme of 1% Additional Interest Margin.
 

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