NSFDC provides loans to the eligible target group under its schemes through its Channel Partners. The loan applications are to be submitted by the eligible target group (Scheduled Castes persons living below Double the Poverty Line)to the District Offices of State Channelizing Agencies (SCAs). The District Offices of SCAs forward these applications, after scrutiny, to their Head Offices. The viability of the project proposals are appraised by the SCAs and the viable projects are forwarded to NSFDC along with their recommendations for sanction. Eligible target group can also submit their loan application to other Channelising Agencies of NSFDC such as Regional Rural Banks/ Public Sector Banks/ NBFC MFIs, with whom NSFDC has signed Memorandum of Agreements.
The said project proposals are appraised by the Project Desk. The appraisal report is submitted to the Project Clearance Committee (PCC) for their concurrence. The proposals which are found to be in order are recommended for sanction. After sanction, Sanction Letters called as Letter of Intents(LOIs), along with Terms & Conditions are issued to the SCAs/ RRBs/ Public Sector Banks/ NBFC-MFIs for acceptance.
After acceptance of the terms and conditions of the sanction and fulfillment of Prudential Norms, as applicable, funds are disbursed to the SCAs/ RRBs/ Nationalized Bank for onward disbursement to the beneficiaries. The disbursement of funds is made by NSFDC on receipt of demand from the SCAs/ RRBs/ Public Sector Banks/ NBFC MFIs. The loans are to be repaid by the beneficiaries in Equal Monthly Instalments to the concerned channel partner.