NSTFDC and SBI Sign Refinance Agreement

New Delhi, August 2: The National Scheduled Tribe Finance and Development Corporation (NSTFDC) and State Bank of India (SBI) signed a Refinance Agreement here today in the presence of Shri V Kishore Chandra Deo, Union Minister of Panchayati Raj and Tribal Affairs. The agreement was signed by the Shri Gur Saroop Sood, Chairman-cum-Managing Director of NSTFDC and Shri A Krishna Kumar, Managing Director and Group Executive (NB) of SBI. On the occasion, Shri Kishore Chandra Deo said that this is a significant occasion when State Bank of India, the largest Public Sector Bank in the country, has entered into an arrangement with NSTFDC for channelizing concessional loans to the Scheduled Tribes. This also reflects positively on the SBI that they not only cater to the large business houses and high net worth individuals and industrialists but are also committed to economic upliftment of the weaker sections of the society.

The Minister said that today’s arrangements would open a new era towards micro financing of needy Scheduled Tribes by NSTFDC through SBI. Under the arrangements, NSTFD would provide refinance to SBI for loans extended to Self Help Group comprising all ST members. ST beneficiaries would pay concessional interest rate of 6% p.a. only. This arrangement would open doors of more than 14000 branches of SBI to the needy Scheduled Tribes Community for seeking loans upto RS. 5 lakh at the concessional rate.

He informed that the NSTFDC is an apex organization or economic development of Scheduled Tribes, was set up in April 2001 under the Ministry of Tribal Affairs. This Corporation provides financial assistance to Scheduled Tribes at concessional rates of interest for taking up income generation activities. The Corporation in its 11 years of operations has sanctioned financial assistance for schemes costing around Rs. 2200 crore. of this NSTFDC share is around Rs. 1200 crore, while the balance has been met by way of margin money/subsidy/promoters contribution. This financial assistance has benefited around Rs. 5 lakh STs throughout the country.

Shri Deo said that most of the STs are geographically isolated and under-privileged on most of the development indices. This calls for specific need based intervention from developmental agencies and not a ‘one size fit all’ approach. He said that within the framework of schemes of NSTFDC, a tribal can take up any vocation suited to his/her aptitude, skill set, habitat etc. There is a complete flexibility in this regard. He can opt to obtain assistance for agricultural or services or transport or even industrial sector activity. NSTFDC’s recently launched Education Loan Scheme is also calibrated to empower ST students for obtaining professional/technical education and for pursuing Ph.D in India. The NSTFDC is not only implementing its schemes through State Channelizing Agencies but is also increasingly exploring the avenues of reaching out through Public Sector Banks and Regional Rural Banks who have entered into agreements with NSTFDC.

On the occasion, Shri Mahadeo Singh Khandela, Minister of State for Tribal Affairs and Smt. Vibha Puri Das, Secretary of the Ministry were also present.

SCHEME FOR PROMOTION AND SUPPORT OF WOMEN SELF HELP GROUPS

The scheme has been formulated by NABARD in association with GOI to bring out a viable and self-sustainable model for promotion and financing of Women Self Help Groups (WSHGs) by involving an anchor NGO in each of the selected backward districts of the country. These anchor NGOs besides promoting and nurturing SHGs will also be involved in tracking and monitoring the performance of SHGs promoted under the scheme apart from being responsible for loan repayments.
 The salient features of the scheme are as under:
  An anchor NGO to be selected by Lead District Manager (LDM) in consultation with the District Development Manager (DDM), NABARD and District Level Credit Committee (DLCC) in each of the identified district for implementation of the project.
  The scheme would be implemented primarily through two nodal bank branches, having CBS facility, in each block of the identified districts.
  The identified bank branch will enter into a MoU with the identified NGO.
  The identified NGOs will be eligible for grant assistance from NABARD upto a maximum of Rs.10,000 per SHG promoted and nurtured which will be released to them as per the schedule
 mentioned in para-8 of the operational guidelines (attached with this circular).
  Loans to new SHGs promoted will preferably be under the cash credit mode and Rate of Interest will be 05% above base rate.
  A service charge of 5% per annum on monthly average loan outstanding of SHGs shall be paid by the bank to the respective NGOs after deducting the amount of overdues in SHG loan accounts if any.

SBI, NSTFDC join hands to provide concessional loans to tribals

New Delhi, August 1: Aiming to enhance career opportunities for tribals, the National Scheduled Tribes Finance and Development Corporation (NSTFDC) today joined hands with State Bank of India to provide them concessional loans with flexible repayment options. Besides providing individual financial assistance, the NSTFDC will also allocate funds for income generating activities by several Self Help Group (SHGs).
"Most of the tribals are deprived of even basic education. They are geographically isolated and under-privileged on most of the development indices... With the help of NSTFDC, tribals can take up any vocation suited to their aptitude, skill and habitat," Tribal Affairs Minister V Kishore Chandra Deo said. Addressing a gathering at the signing of the agreement, the Union Minister also exhorted the banks in the country to focus on rural and backward areas which will ensure growth and development there.
Under the various schemes launched by NSTFDC, tribals can avail funds for self-employment from SBI at six per cent rate of interest with flexible repayment options. Applauding the efforts of the Corporation, Deo said, "In its 11 years of existence, NSTFDC has sanctioned financial assistance for schemes costing around Rs 2200 crore benefiting around 5 lakh tribal people in the country." The Corporation also recently launched an educational loan scheme for facilitating professional and technical education and Ph.D among tribal population of the country.
Observing that the schemes launched by NSTFDC have successfully covered five lakh tribal people, Deo said, "This is the section of the people who have been the most deprived, not for years but centuries. It is heartening that our efforts are now benefiting them." The function was attended by Minister of State for Tribal Affairs Mahadeo Singh Khandela and Secretary Tribal Affairs Vibha Puri Das.