NBCFDC Extends Financial Assistance and Concessional Loans for OBC Education and Entrepreneurship Development
Distilled Policy Brief
- Education loans up to 25 lakh rupees are offered at a concessional annual interest rate of 8% with a repayment period of up to 10 years including the moratorium period.
- Under the group loan scheme, Self Help Groups receive assistance up to 25 lakh rupees per group with a ceiling of 1.25 lakh rupees per beneficiary, covering up to 90% of the project cost at a 7% annual interest rate.
🎯 Prelims High-Yield Examination Points
National Backward Classes Finance and Development Corporation (NBCFDC) was established on January 13, 1992, under the Ministry of Social Justice and Empowerment to provide concessional loans and financial assistance for the education and entrepreneurship of Other Backward Classes (OBCs) having an annual family income up to 5 lakh rupees.
⚖️ Mains Analytical & Syllabus Linkages
Examine the role of institutional credit and specialized financial corporations like NBCFDC in promoting entrepreneurship, skill development, and inclusive growth among marginalized and backward classes.
🎯 UPSC Prelims Practice Drill
Consider the following statements regarding the financial assistance schemes provided by the National Backward Classes Finance and Development Corporation (NBCFDC): 1. Education loans up to 25 lakh rupees are offered at a concessional annual interest rate of 8% with a repayment period of up to 10 years including the moratorium period. 2. Under the group loan scheme for Self Help Groups, assistance is provided up to 25 lakh rupees per group, covering up to 90% of the project cost with at least 60% of the members belonging to backward classes. Which of the statements given above is/are correct?
- [A] 1 only
- [B] 2 only
- [C] Both 1 and 2
- [D] Neither 1 nor 2
▶ Reveal Official Answer & Analytical Explanation
Both statements are correct based on the policy briefing of NBCFDC under the Ministry of Social Justice and Empowerment. Statement 1 is correct as education loans up to 25 lakh rupees are offered at an 8% concessional interest rate with a repayment period of up to 10 years including moratorium. Statement 2 is also correct as the group loan scheme provides up to 25 lakh rupees per group covering up to 90% of the project cost, with a requirement that at least 60% of group members must belong to backward classes.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.