Aajeevika Micro-Finance Yojana (Livelihood Microfinance Scheme)
The Aajeevika Micro-Finance Yojana, by the Ministry of Social Justice and Empowerment, provides microfinance to Scheduled Caste entrepreneurs. It aims to support small income-generating activities through Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIs).
What is the Aajeevika Micro-Finance Yojana?
This scheme offers microfinance to Scheduled Caste individuals for small business ventures. It facilitates access to credit through NBFC-MFIs, enabling them to pursue sustainable livelihoods.
Key Objectives of the Aajeevika Micro-Finance Yojana
· Financial Inclusion: To provide timely and need-based microfinance to Scheduled Caste entrepreneurs.
· Livelihood Support: To enable individuals to engage in small/micro business activities.
· Economic Empowerment: To promote self-reliance and economic independence among Scheduled Caste communities.
· Reasonable Interest Rates: To offer loans at affordable interest rates.
Eligibility Criteria for the Aajeevika Micro-Finance Yojana
· Category: Applicants must belong to the Scheduled Caste category.
· Income: Annual family income up to ₹3.00 lakhs.
· NBFC-MFI Eligibility:
o Registered with RBI as NBFC-MFI.
o Compliance with RBI microfinance norms.
o 3 years of continuous profit track record.
o Low Gross and Net Non-Performing Assets (NPA).
o Membership of a Credit Bureau.
o Minimum Capacity Assessment Rating of mfr5 by CRISIL or equivalent.
o No default in repayment of outside borrowings.
o Proper internal systems and audited accounts.
Benefits of the Aajeevika Micro-Finance Yojana
· Financial Assistance: Up to 90% of the project cost (maximum ₹1,40,000).
· Interest Rates:
1. 10% for women and 11% for men (through NBFC-MFIs).
2. Interest subvention of 2% for individual borrowers with timely repayment.
· Repayment Period: Up to 3.5 years in quarterly installments.
· Moratorium Period: 3 months.
· Second Loan: Available after repayment of the first loan.
How to Apply for the Aajeevika Micro-Finance Yojana?
· Offline Application:
1. Contact the nearest Channeling Agency ([https://nsfdc.nic.in/channel-patrners/](https://nsfdc.nic.in/channel-patrners/)).
2. Submit the application to the District Offices of State Channelizing Agencies (SCAs).
3. Applications can also be submitted to Regional Rural Banks, Public Sector Banks, and NBFC-MFIs with MOUs with NSFDC.
Documents Required for Application
· Aadhaar Card.
· Income certificate.
· Caste certificate.
· Bank account statement.
· Application in NSFDC's format with business details.
FAQs About the Aajeevika Micro-Finance Yojana
1. Who is eligible?
Scheduled Caste entrepreneurs with an annual family income of up to ₹3.00 lakhs.
2. What is the maximum loan amount?
₹1,40,000.
3. What is the interest rate?
10% for women and 11% for men.
4. How do I apply?
Through Channeling Agencies, SCAs, and other financial institutions.
5. Is there any interest subvention?
Yes, 2% for individual borrowers with timely repayment.
Why Should You Apply for the Aajeevika Micro-Finance Yojana?
This scheme provides crucial financial support to Scheduled Caste entrepreneurs, enabling them to start and grow their businesses. With affordable interest rates and flexible repayment terms, it promotes economic empowerment and sustainable livelihoods.
Conclusion
The Aajeevika Micro-Finance Yojana is a vital initiative that empowers Scheduled Caste communities by providing access to microfinance. By supporting small businesses, the scheme contributes to economic development and social upliftment.