The Aajeevika Micro Finance Yojana is a pivotal scheme initiated by the Ministry of Social Justice and Empowerment, aimed at uplifting Scheduled Caste (SC) entrepreneurs by providing them with the necessary financial assistance to engage in small/micro business activities. This scheme is designed to address the financial challenges faced by SC entrepreneurs and to promote economic independence and self-reliance among this community.
Scheme Details:
The Aajeevika Micro Finance Yojana provides prompt and need-based microfinance to eligible Scheduled Caste persons through Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIs). The scheme offers financial assistance up to 90% of the project cost, with a maximum limit of Rs. 1,40,000. This financial support is crucial for initiating and sustaining small income-generating activities.
Importance:
The inception of this scheme is a significant step towards promoting social and economic development among Scheduled Castes in India. By providing financial aid at reasonable interest rates, the scheme ensures that SC entrepreneurs can overcome financial barriers and establish successful businesses, thereby contributing to the overall economic growth and reducing poverty within the community.
| Feature | Description |
|---|---|
| Name of the Yojana | Aajeevika Micro Finance Yojana |
| State | Madhya Pradesh |
| Initiated By | Chief Minister Shivraj Singh Chouhan |
| Yojana Overview | The scheme aims to provide financial assistance to women, improving their economic independence and social status. It includes monthly financial support and incentives for education and skill development. |
| Beneficiaries | Married, widowed, divorced, and abandoned women aged 23-60 with a family income of less than Rs 2.5 lakh annually, residing in Madhya Pradesh. Unmarried women above 21 are also eligible. |
| Registration Process | Both offline and online modes are available. Applications can be submitted at Seva Kendras, panchayat offices, and online through the official portal. |
| Official Website | Aajeevika Micro Finance Yojana |
Table of Contents
Objectives of “Aajeevika Micro Finance Yojana”
The primary objective of the Aajeevika Micro Finance Yojana is to offer prompt and need-based microfinance to Scheduled Caste entrepreneurs. This objective is realized through several key goals:
- Financial Support: The scheme aims to provide substantial financial assistance to SC entrepreneurs to help them start or expand their small/micro business activities.
- Economic Upliftment: By offering financial aid, the scheme seeks to uplift SC entrepreneurs, enabling them to generate income and improve their economic status.
- Reducing Poverty: The financial support provided by the scheme is targeted at reducing poverty levels among Scheduled Castes by facilitating sustainable business opportunities.
- Promoting Entrepreneurship: The scheme encourages entrepreneurship within the Scheduled Caste community by providing the necessary financial resources to pursue business ventures.
- Inclusive Growth: The scheme contributes to inclusive growth by ensuring that economically disadvantaged sections of society, specifically Scheduled Castes, have access to financial support for their business activities.
Registration Process
The registration process for Aajeevika Micro Finance Yojana is conducted offline. Here is a detailed step-by-step guide for registration:
- Obtain the Application Form: Interested and eligible persons should contact the nearest Channeling Agency to obtain the application form. The list of Channeling Agencies can be found on the official website.
- Fill in the Application Form: Accurately fill in the required details in the application form. Ensure that all the information provided is correct to avoid any issues during the application process.
- Attach Necessary Documents: Attach all the necessary documents as specified. These documents typically include Aadhaar Card, income certificate, caste certificate, and bank account statement.
- Submit the Application Form: Submit the completed application form along with the supporting documents at the Channeling Agency office.
- Follow Up: After submission, follow up with the authorities for updates on the application status. This ensures that any additional requirements or clarifications can be promptly addressed.
By following these steps, eligible beneficiaries can successfully apply for the financial assistance provided under the scheme.
Benefits of this Yojana
The Aajeevika Micro Finance Yojana offers several significant benefits to its beneficiaries:
- Financial Assistance: The scheme provides financial assistance up to 90% of the project cost, with a maximum limit of Rs. 1,40,000. This support is essential for initiating and sustaining small income-generating activities.
- Interest Subvention: Beneficiaries are eligible for an interest subvention of 2% per annum from NSFDC on timely full repayment of dues on a yearly basis. This amount is credited directly to the beneficiaries’ accounts via Direct Benefit Transfer (DBT).
- Reasonable Interest Rates: The interest rates charged are reasonable, ensuring that the financial burden on the beneficiaries is minimized. For individual borrowers, the interest rate from NSFDC to NBFC-MFI is 4% p.a. for women and 5% p.a. for men. The NBFC-MFI then charges 12% p.a. for women and 13% p.a. for men to the beneficiaries.
- Repayment Period: The loan is to be repaid in quarterly installments within a maximum period of three and a half years from the date of each disbursement, including the moratorium period.
- Additional Loan Opportunities: After repayment of the earlier loan, eligible beneficiaries can avail of further loans under NSFDC schemes from NBFC-MFIs or other channeling agencies of NSFDC.
Eligibility Criteria
To be eligible for the Aajeevika Micro Finance Yojana, applicants must meet the following criteria:
- Scheduled Caste Category: The applicant must belong to the Scheduled Caste category.
- Annual Family Income: The annual family income of the applicant should be up to Rs. 3 lakhs.
- Entrepreneurial Intent: The applicant should have a clear intent and plan to pursue small/micro business activities.
Meeting these criteria is essential for qualifying for the financial assistance provided under the scheme.
Eligibility of Non-Banking Financial Company-Micro Finance Institution (MFI)
For a Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI) to be eligible for participating in the Aajeevika Micro Finance Yojana and to receive financial assistance from the National Scheduled Castes Finance and Development Corporation (NSFDC), it must meet the following criteria:
- Registration with RBI:
- The NBFC-MFI must be registered with the Reserve Bank of India (RBI) as a Non-Banking Financial Company-Micro Finance Institution. This ensures that the institution operates under the regulatory framework and guidelines set by the RBI.
- Compliance with RBI Norms:
- The NBFC-MFI should be in compliance with all RBI norms related to microfinance. This includes adherence to prudential norms, operational guidelines, and other regulatory requirements mandated by the RBI.
- Profit Track Record:
- The NBFC-MFI must have a continuous profit track record for at least three years. This indicates financial stability and the ability to manage funds effectively, which is crucial for sustaining microfinance operations.
- Non-Performing Assets (NPA) Threshold:
- The Gross Non-Performing Assets (NPA) of the NBFC-MFI should be less than 2%, and the net NPA should be below 0.5% as per their annual accounts for the preceding financial year. This ensures that the institution maintains a healthy loan portfolio with minimal defaults.
- Credit Bureau Membership:
- The NBFC-MFI must be a member of a credit bureau. Membership in a credit bureau facilitates the sharing of credit information, which helps in assessing the creditworthiness of borrowers and reducing the risk of defaults.
- Capacity Assessment Rating:
- The NBFC-MFI should have a minimum Capacity Assessment Rating of mfr5 by CRISIL or its equivalent. This rating assesses the institution’s capacity to manage microfinance operations efficiently and effectively.
- No Default on Borrowings:
- The NBFC-MFI should not have defaulted on repayment of outside borrowings in the last three years and should not have undergone corporate debt restructuring. This demonstrates financial discipline and reliability.
- Internal Systems and Audits:
- The NBFC-MFI should have proper systems in place for internal accounting, risk management, internal audit, Management Information Systems (MIS), cash management, etc. Its annual accounts should have been audited for the last three years to ensure transparency and accountability.
- Code of Conduct Assessment (COCA):
- It is desirable for the NBFC-MFI to have undergone a Code of Conduct Assessment (COCA) with a minimum score of 60 or its equivalent. This assessment evaluates the institution’s adherence to ethical practices and standards in microfinance operations.
By meeting these eligibility criteria, an NBFC-MFI can qualify for financial assistance under the Aajeevika Micro Finance Yojana, enabling it to provide microfinance services to Scheduled Caste entrepreneurs effectively.
Required Documents
Applicants need to submit the following documents when applying for the Aajeevika Micro Finance Yojana:
- Completed Application Form: The form must be filled out accurately and completely.
- Aadhaar Card: This serves as a proof of identity.
- Income Certificate: This document verifies the annual family income of the applicant.
- Caste Certificate: This certificate is necessary to confirm the applicant’s eligibility under the Scheduled Caste category.
- Bank Account Statement: This provides the necessary banking details for fund disbursement and other financial transactions.
By ensuring that all these documents are accurately prepared and submitted, applicants can avoid any delays or issues in the application process.
