Tamil Nadu OBC/Muslim-Christian Economic Development Corporation Insight

1). Procedure for availing loan assistance by the Backward Classes, Most Backward Classes and Denotified Communities:

The Tamil Nadu Backward Classes Economic Development Corporation is extending term loans to the Backward Classes / Most Backward Classes / Denotified Communities for their socio-economic development, through various schemes.

2). Financial Sanction Activities

Various schemes of financial assistance are as follows.

1)  Trades and Small Business

2)  Transport

3)  Agriculture

4)  Handicrafts and Traditional Occupations. (Artisan)

3). Qualifications

(a) Beneficiaries should belong to

i)     Backward Classes

ii)   Most Backward Classes

iii) Denotified Communities

b)  The following conditions should be fulfilled:

i)       The family income of the beneficiary should not exceed Rs.40,000/- p.a. in Rural areas and Rs.55,000/- p.a. in Urban areas.

ii)      Beneficiaries' age should be above 18 years and below 60 years.

iii)     Loan assistance will be sanctioned for one person in a family.

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4). Mode of Application

Loan Application forms can be had free of cost from the office of the TABCEDCO situated in Chennai.

or

From the District Backward Classes and Minorities Welfare Officer & Regional Manager of TABCEDCO / Regional Joint Registrar of Co-Operative Societies in the Districts.

or

From Co-operative Banks in Districts.

5). Documents to be produced

The applicants should submit the Loan Applications to the District Backward Classes and Minorities Welfare Officer & Regional Manager of TABCEDCO in the Districts / Office of the Joint Registrar of Co-operative Societies / Co-operative Banks along with the copy of the following documents.

i)   Community, income and nativity certificates.

ii)   Ration card.

iii) Quotation from a leading company.

iv)  Project report ( for big projects only)

v)  Driving license ( for transport vehicle loans only)

vi)  Documents for hypothecation / mortgage as required by the Bank.

6). Method of Loan sanction

(1) The following institutions are authorised to act as Sub-Channelising Agencies for the disbursement and recovery of loan.

1)  Tamil Nadu Industrial Co-operative Bank.

2)  Tamil Nadu Handloom Development Corporation.

3)  Co-operative Banks.

4)  Private  & Nationalised Banks

5)  Aavin.

(2)    In respect of the loan applications received for sanction of loan through Co-operative Banks, the applications will be processed by the respective Co-operative Banks and the concerned Bank will scrutinize the application and after ensuring the viability of the scheme and repaying capacity of the applicant

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etc, the applications will be placed before the District Scrutiny Committee headed by Joint Registrar of Co-operative Societies and the Committee will recommend for sanction of loan. In respect of Milch Animal scheme implemented through Aavin. Aavin will select the beneficiaries among the members of the Milk Producers Union in their jurisdiction and recommend for sanction of loan to them for purchase of Milch Animals with project cost of Rs.30,000/- per animal.

7). Loan amounts / Securities

As per lending  banks norms.

8). Method of financial assistance

The term loan amounts are sanctioned to the eligible persons by the Corporation adopting the following patterns:-

Term Loan amounts

1)  General Term Loan Scheme

		Pattern of	Interest
		Assistance	(per annum)
Beneficiary Share:	:	5%	-
TABCEDCO Share	:	10%	6%
National Corporation Share	:	85%	6%
Project Cost		-------
		100%
		-------

(Maximum Rs.5.00 lakhs depending upon the Trade etc.)

^v         Loans up to Rs.1.00 lakh will be sanctioned by TABCEDCO

^v         Loans above Rs.1.00 Lakh will be sanctioned with the prior permission of National Corporation.

^v         Repayment period is 3/5 years. (12 Quarterly / 20 Quarterly Installments)

2) Scheme for Women:

i). Micro Credit scheme

(Mahila Samridhi Yojana)

^Ø  Minimum Rs.2000/- and Maximum Rs.30000/-per beneficiary will be given.

^Ø   Repayment period – Minimum 12 Months and Maximum 3 Years.

(Loans will be given to the members of Self Help Groups through Self Help Group)

Pattern of Assistance
TABCEDCO Share	:  5%
National Corporation Share	: 95%

Rate of Interest to Self Help Group through Co-operative Bank : 4% (p.a.)

ii). New Swarnima Scheme

Loan up to Rs.100000/- lakhs has been sanctioned in the following pattern.

	Pattern of Assistance	Rate of Interest
TABCEDCO Share	5%	5% (p.a.)
National Corporation Share	95%	5% (p.a.)

iii). Loans to Entrepreneurship Development Programme Trained Women

Entrepreneurship Development Programme Trained Women will be eligible to get loan up to Rs.10000/- through Co-operative Banks under General Loan Scheme terms and conditions.

3)  Micro Credit scheme for men

^Ø   Minimum Rs.2000/- and Maximum Rs.30000/- per beneficiary will be given.

^Ø  Repayment period :– Minimum 12 Months and Maximum 3 Years. (Loans will be given to the members of the Self Help Groups through Self Help Group)

Ø Pattern of Assistance
Beneficiary Share	:	5%
TABCEDCO Share	:	5%
National Corporation Share	: 90%

Rate of Interest to Self Help Group through Co-operative Bank : 5% (p.a.)

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4) Milch Animal Scheme (Through Aavin)

Aavin will select the beneficiaries from among the members of the Milk Producers Union in their jurisdiction and recommend for sanction of loan to them for purchase of milch animals with project cost of Rs.30,000/- per animal. Loan will be given to each beneficiary for purchase of 2 animals at a cost of Rs.30,000/- per animal under the General Loan Scheme terms and conditions.

5) Loan -Cum- Subsidy Scheme for Small and Medium Farmers

The Government have introduced a Loan - Cum- Subsidy Scheme to small and medium farmers belonging to the Backward Classes/ Most Backward Classes/ Denotified Communities, for the creation of new minor irrigation facility vide G.O. Ms. No. 111, Backward Classes, Most Backward Classes and Minorities Welfare Department, Dated:31.12.2007. The Government have so far provided funds to the tune of Rs.50.00 crores (2007-08 – Rs.25.00 crores & 2008-09 Rs.25.00 crores) to TABCEDCO for providing ‘Subsidy’ under this scheme. The Scheme has been implemented through TABCEDCO. Under this scheme, bank loan with 50% Government Subsidy subject to a maximum of Rs.50000/- is provided to each eligible beneficiary.

6). Grant cum Loan Scheme for Setting up of Mobile laundry

The Government have issued orders to provide subsidized loan amount of Rs.5000/- (Subsidy Rs.2000/- + Loan Rs.3000/-) to 1000 persons belonging Backward Classes/ Most Backward Classes/ De-notified Communities for setting up of Mobile Laundry through TABCEDCO under General Term Loan terms and conditions. The loan amount of Rs.3000/- should be repaid in 2 years at 6% interest (p.a.).

7). Other items - Transport
1)	Car/ Van/Mini van	}	Maximum
2)	Agricultural purchase of	}	Loan Amount :  Rs.3.13 lakhs
	Tractor/ Trailer	}	Interest	:  10% (p.a.)
		}   (Repayable in 5 years.)

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8). New schemes:-

National Backward Classes Finance and Development Corporation, New Delhi, has introduced the following New Loan Schemes and will be implemented by TABCEDCO from the year 2012-13.

a). Education Loan:-

Maximum Loan amount Per Student:

In India- Rs.10,00,000/-

Abroad- Rs.20,00,000/-

	Pattern of Assistance	Rate of Interest
Beneficiary Share	5%	--
TABCEDCO Share	5%	4% (p.a.)
National Corporation Share	90%	4% (p.a.)

(*) Rate of Interest 3.5% p.a. for girl student.

Repayment Period:- The moratorium, besides co-terminus with the course for which loan has been obtained by the students, will have a further six months period for starting repayment after the completion of the course

(b). Saksham:-

(Loan for young Professionals to set up their self-employment ventures), Under the Scheme loan will be given at a maximum of

Rs.10,00,000/- per beneficiary under General Loan Scheme terms and

conditions.
	Pattern of		Interest
	Assistance
		(Upto Rs. 5.00    (Above Rs.5.00
		Lakhs)	Lakhs)
Beneficiary Share:	5%	-	-
TABCEDCO Share:	10%	6%	8%
NBCFDC Share:	85%	6%	8%

(c). Shilp Sampada:-

(Loan for upgradation of technical and entrepreneurial skill and self-employment of traditional Artisans & Craftsmen)

Under the Scheme loan will be given at a maximum of Rs.10,00,000/- per beneficiary under General Loan Scheme terms and conditions.

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	Pattern of		Interest
	Assistance
		(Upto Rs. 5.00   Above Rs.5.00
		Lakhs)	Lakhs)
Beneficiary Share:	5%	-	-
TABCEDCO Share:	10%	6%	8%
NBCFDC Share:	85%	6%	8%

(d). Kirishi Sampada:-

(Micro Finance for small farmers & vegetable growers),

Under the Scheme loan will be given at a maximum of Rs.50,000/- per beneficiary. Rate of Interest: 4%, TABCEDCO Share: 5%, NBCFDC Share:95%.

9). Repayment of loan amounts

The repayment of the loan amount should commence with 2 months moratorium period after the sanction of loans and should be repaid in full within a reasonable period of not exceeding 12 month / 3 years/ 5 years depending on the project. The loan amounts should be repaid in monthly / quarterly basis.

10). Defaulters

Penal interest is charged @ 5% by TABCEDCO from the defaulters for period in default.

11). Loan sanction card maintenance

After the sanction of loan, each and every beneficiary is issued with ‘a loan sanction card’. This card should be preserved carefully and should be produced for making necessary entries while repaying the dues in installments.

Contact address for further details

Managing Director,

Tamil Nadu Backward Classes Economic Development Corporation, LLA Building (III – Floor), 735, Anna Salai,

Chennai – 600 002.

Phone : 044-28520144

Fax      : 044-28520422                                E-mail : tabcedco@gmail.com