NSFDC (National Scheduled Castes Finance and Development Corporation)

NSFDC is a government company that gives cheap loans to people from Scheduled Castes (SCs). Its full name is the National Scheduled Castes Finance and Development Corporation.

It is a public sector undertaking (PSU). It works under the Ministry of Social Justice and Empowerment. The Government of India owns all of it.

What does NSFDC do?

It helps SC families earn more and live better. It works in four main ways:

• Loans for work: money to start or grow a small business.
• Education loans: for full-time professional or technical courses, in India and abroad.
• Skill training: grants for training that leads to a job or self-employment.
• Fairs: it runs or joins exhibitions-cum-fairs where borrowers sell their goods.

Its loans are concessional. That means they cost less than a normal loan.

What is its goal?

NSFDC wants to help cut poverty among eligible SCs. Its mission is to improve the flow of money to them.

What kind of company is it?

NSFDC is a not-for-profit company. It does not run to make money for owners. It began under Section 25 of the Companies Act, 1956. Today it comes under Section 8 of the Companies Act, 2013.

Where is it based?

Its head office is on the 14th floor of SCOPE Minar, Laxmi Nagar, Delhi. It also has liaison centres in Mumbai, Kolkata, Lucknow and Bengaluru.

How big is its capital?

Authorised capital is the most share capital a company may raise. Paid-up capital is the amount actually put in.

• Authorised share capital: ₹1,800 crore.
• Paid-up share capital: ₹1,515 crore, as on 31 March 2026.

NSFDC was set up on 8 February 1989. At first, it served both Scheduled Castes and Scheduled Tribes (STs).

What was its first name?

It began as the National Scheduled Castes and Scheduled Tribes Finance and Development Corporation.

Why did it split in two?

The government ordered the old body to split into two. One part would serve SCs. The other would serve STs. From 10 April 2001, NSFDC has worked only for SCs.

Who took over the ST work?

A new body, NSTFDC, took on the ST side. It was set up in 2001 under the Ministry of Tribal Affairs. The existing NSFDC kept the SC work.

A borrower must belong to a Scheduled Caste. The family’s yearly income must also be ₹5 lakh or less.

What papers does a borrower need?

A borrower needs a valid caste certificate from the right office. An offline form also needs income proof and KYC papers. KYC papers show who you are.

What is the income limit now?

The limit is ₹5 lakh a year per family. It is the same in villages and towns. It took effect on 7 January 2026.

What was the limit before?

The old limit was ₹3 lakh a year. It applied from 8 March 2018. Many old notes still say ₹3 lakh, so check the date.

Can a group borrow?

Yes. Individuals, partnership firms and co-operative societies can all apply. But every member of a firm or society must be from a Scheduled Caste. Each member’s family income must also stay within ₹5 lakh.

Is there a limit for skill training?

No. Skill training has no income limit at all. The ₹5 lakh rule is only for loans.

Who checks that a borrower qualifies?

The channel agency does. Checking each borrower is mainly its job. NSFDC can still re-check any applicant.

It flows through partner agencies, never straight from NSFDC. This is called the channel finance system.

Can I walk into NSFDC and ask for a loan?

No. NSFDC does not take loan forms from the public. It does not hand money to borrowers itself.

How do I apply, then?

• Online: through the PM-SURAJ portal of the Department of Social Justice and Empowerment.
• Offline: at the nearest district or head office of a channel agency.

Who are the channel partners?

NSFDC works with a network of 102 partners. They fall into eight groups:

1. State Channelizing Agencies (SCAs)
2. Public sector banks
3. Regional rural banks
4. NBFC-MFIs, which are small-loan finance firms
5. Co-operative banks
6. Small finance banks
7. Co-operative societies
8. Other agencies and SIDBI

State governments and UT administrations choose the SCAs.

What does a partner do?

A partner takes the loan form and works on it. It then pays out NSFDC’s money to the borrower. Later, it collects the repayments.

How wide was the network in 2023-24?

In 2023-24, there were 38 SCAs and 63 other channel agencies. Of 28 states and 8 UTs with SC people, 25 states and 4 UTs drew funds that year.

How much money has flowed through it?

• In 2023-24 alone, NSFDC paid out ₹714.45 crore.
• By 31 March 2024, the government had put in ₹1,515 crore as equity.
• Up to that date, NSFDC had paid out ₹8,302.03 crore in all.
• The money reached 16.11 lakh people. Of them, 9.71 lakh were women (60.27%).
• So the total paid out was 5.48 times the equity received.
• About 92.93% of the money paid out had been used by 31 March 2024.

Note the date on each figure. Newer totals were not found in English.

NSFDC now runs five loan schemes. In each one, it lends up to 90% of the project cost.

What are the five schemes?

What is the Micro Finance Scheme?

It is for very small units. A unit may cost up to ₹1.40 lakh. The loan is repaid within three years. That time starts with a three-month break, called a moratorium.

What is a Term Loan?

A Term Loan is for bigger units, costing up to ₹50 lakh. It is repaid within seven years. That includes a six-month break. Plantation and building work get a 12-month break.

What is the Aajeevika Micro-Finance Yojana?

It gives quick, small loans through chosen NBFC-MFIs. Its loan size matches the Micro Finance Scheme. But the borrower pays 15%, one of the highest rates here.

What is the Udyam Nidhi Yojana?

It funds units that cost up to ₹5 lakh. Its money flows through co-operative societies, co-operative banks and small finance banks.

How does the education loan work?

The Educational Loan Scheme helps SC students pay for courses. The course must be full-time, professional or technical. It can be in India or abroad. Study for an MPhil or PhD is also covered.

Why does the rate change from scheme to scheme?

NSFDC lends to the partner at a low rate. The partner then adds its own share on top. So the borrower’s rate depends on the type of partner. Borrowers typically pay about 6.5% to 8% a year.

Did NSFDC once use other scheme names?

Yes. In 2023-24, its list included the Mahila Samriddhi Yojana, Suvidha Loan and Utkarsh Loan. The current scheme page does not list them. It shows one Term Loan instead.

What is the 40% rule for women?

NSFDC sets a target for women. 40% of Term Loan and Micro Finance funds are meant for them. Up to 31 March 2024, women were 60.27% of borrowers.

What can the money be used for?

Any legal and viable income-earning business may be considered. NSFDC groups its sample list into three sectors:

• Farm and allied: goat rearing, fisheries, honey bee keeping, flower growing.
• Small industries: flour mills, bakeries, potteries, handlooms.
• Service and transport: beauticians, cloth merchants, driving schools, auto rickshaws.

It found positive results in income, assets, jobs and social standing. The results came out on 13 July 2026.

Who did the study, and how?

An outside agency called DOORS ran it in 2025-26. It looked at a sample of 5,480 borrowers. They had taken loans in 2021-22, 2022-23 or 2023-24.

Which states and UTs were covered?

The sample came from eleven states and UTs:

• Andhra Pradesh, Bihar, Gujarat, Himachal Pradesh, Jammu & Kashmir, Karnataka.
• Odisha, Puducherry, Punjab, Tamil Nadu, Tripura.

Did more borrowers start working for themselves?

Yes, by a lot. Self-employed borrowers rose from 46.62% to 73.95%. Self-employment outside farming rose from 35.64% to 59.42%.

Did incomes go up?

Yes, for many. Fewer families stayed in the lowest income band.

• Families earning below ₹1.50 lakh a year fell from 67.39% to 44.74%.
• Families earning ₹1.50 lakh to ₹3 lakh rose from 32.61% to 46.28%.
• 8.98% of borrowers crossed a family income of ₹3 lakh.

Here, ₹3 lakh is only a band used in the study. It is not the loan limit.

Did the money go to the right use?

Yes, in most cases.

• 93.34% used the loan for its stated purpose.
• 93.54% still had the assets bought with the loan.

What happened to women who were homemakers?

Almost all of them began to earn on their own. Of 705 women who were homemakers, 674 became self-employed. That is 95.60%, or about 95.6%.

Did borrowers feel more respected?

Yes. 81.30% said their social status had improved. More than 58% saw a big gain in standing. Another 23% saw a moderate gain.

What are the limits of this study?

It was a sample, not a count of every borrower. It covered only 11 states and UTs. So read it as a strong sign, not the full picture.

Exams test NSFDC through its dates, its ministry, its income limit and its channel system. Watch for these traps.

What are the common traps?

1. Ministry: it is Social Justice and Empowerment, not Tribal Affairs or Minority Affairs.
2. Two dates: set up on 8 February 1989; SC-only from 10 April 2001.
3. Income limit: ₹5 lakh from 7 January 2026; ₹3 lakh is the old figure.
4. No direct loans: money moves only through channel partners.
5. Company type: a Section 8, not-for-profit company, fully owned by the government.
6. Women: the funds target is 40%, not 50%.
7. NSFDC or NSTFDC: the “T” stands for Tribes, and that body dates from 2001.

How can I remember the key numbers?

Think “89 to start, 01 to split, 5 to borrow.” That gives 1989, 2001 and ₹5 lakh.

What should I revise last?

• 102 channel partners in eight groups.
• Five schemes: MFS, Term Loan, AMY, UNY and ELS.
• The PM-SURAJ portal for online forms.
• The 2026 study: 5,480 borrowers in 11 states and UTs.