Notional Allocation of Funds

Guidelines for the disbursement and absorption of NSFDC funds by State Channelizing Agencies (SCAs) and other Channelizing Agencies (CAs).

1

NSFDC notionally allocates funds to its SCAs/CAs based on the Scheduled Caste population as per Census 2011 of a State/UT and the performance of SCAs/CAs during previous years in that State/UT.

2

Broad guidelines for sponsoring proposals and absorption of the above allocation are detailed below:

Allocation Guidelines

2.1 Scheme-wise Allocation

SCAs/CAs should endeavor to achieve this distribution:

Scheme
Target
Term Loan (TL)
Educational Loan Scheme (ELS)
  40%
Micro Finance Scheme (MFS)
60%

2.2 Sectoral Allocation

SCAs/CAs should endeavor to achieve these priorities:

Sector
Target
Agriculture and Allied
50%
Service
40%
Industry
10%

2.3 Social Priorities

Target groups should be covered as per these priorities:

Target Group
Target
Educated unemployed/underemployed
40%
Women (under Term Loan & MCF Schemes)
       40%
Others
       20%

3. Norms for Disbursement

The release of funds to SCAs / CAs shall be subject to the fulfillment of Prudential Norms such as:

  • Availability of adequate Government Guarantee/Bank Guarantee.
  • There should not be any overdues payable to NSFDC.
  • The cumulative utilization level of earlier disbursements shall be 100% as at the end of preceding month for disbursement of funds.

3.1 Additional Norms for Regional Rural Banks (RRBs)

The following additional norms are to be followed by CAs (RRBs) for Disbursement of Funds by NSFDC:

  • Net NPA must be less than 15% in at least 3 years out of last 6 years preceding the year of disbursement.
  • The RRB must have earned a net profit in at least in 3 out of last 6 financial years preceding the year of disbursement.