AAJEEVIKA MICROFINANCE YOJANA (AMY) [Livelihood Microfinance Scheme

To provide Micro Finance to eligible Scheduled Caste persons at reasonable rate of interest through NBFC-MFIs to pursue small/micro business activities. 


Applicants should belong to Scheduled Castes.

The Annual Family Income of applicants should be below Rs. 3.00 lakhs for both rural and urban areas.

The Last Mile Financier i.e. NBFC-MFI fulfilling the following norms shall be considered eligible to avail financial assistance from NSFDC: 

a)      The NBFC-MFI should be registered with the RBI as Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI).

b)      NBFC-MFI should be following all RBI norms related to Micro Finance.

c)      The NBFC-MFI should have 3 years of continuous profit track record. 

d)     The NBFC-MFI should have Gross Non-Performing Assets (NPA) less than 2 % and net NPA below 0.5% as per their Annual Accounts for the preceding financial year.

e)      The NBFC-MFI should be a member of a Credit Bureau.

f)       The NBFC-MFI should have minimum Capacity Assessment Rating of mfr5 by CRISIL or its equivalent.

g)      The NBFC-MFI should not have defaulted in repayment of outside borrowings in the last three years or undergone a corporate debt re-structuring.

h)      The NBFC-MFI should have proper system for internal accounting, risk management, internal audit, MIS, cash management, etc. and its annual accounts should have been audited in the last three years.

i)  It will be desirable for the NBFC-MFI to have undergone Code of Conduct Assessment (COCA) with a minimum score of 60 or equivalent.


 The shortlisted NBFC-MFI fulfilling the eligibility criteria of NSFDC may be appointed to act as Channelizing Agency (CA) of NSFDC in the selected State/UT. The relationship between NSFDC and the NBFC-MFI shall be governed and guided by contractual relationship by signing an Agreement between the parties strictly in accordance with the NSFDC Lending Policy and the terms and conditions of the Agreement. 


 While seeking disbursement from NSFDC, NBFC-MFI shall provide the Bank Guarantee of Public Sector Bank or Fixed Deposits of Public Sector Bank in the name of “NBFC-MFI account NSFDC” equivalent to the amount to be disbursed to them as security to NSFDC for timely repayment of installments of the loan sanctioned under this Agreement together with interest thereon. The validity period of the Bank Guarantee/Fixed Deposit shall continue until all the dues of the NSFDC have been paid in full or otherwise fully discharged by the NBFC-MFI. In case NBFC-MFI has provided Fixed Deposit to the NSFDC, the interest thereon shall be payable to the NBFC-MFI. In the event of default by NBFC-MFI either for the whole or part amount advanced under this Agreement, the Bank Guarantee shall be invoked/the Fixed Deposits shall be encashed by NSFDC


 The unit cost of the Project shall not exceed Rs.1,40,,000/-.


 NSFDC's share shall be up to 90% of the project cost. The balance 10% shall be contributed by the NBFC-MFI and/or beneficiaries. 


The pattern of charging interest under the scheme shall be as follows:

                          NSFDC to NBFC-MFI              - 2% (Women), 3% (Men)

                         Interest Spread to NBFC-MFI – 8%

                        NBFC-MFI to Beneficiaries      - 10% (Women), 11% (Men)


The loan amount shall be repaid in quarterly installments within a maximum period of     3½  years from the date of each disbursement including the moratorium period of three months. In addition, 120-days period is allowed for funds utilization.  There shall not be any moratorium period for payment of interest. 


On repayment of loan, the eligible beneficiaries can avail further loan under NSFDC scheme(s) from NBFC-MFI or other channelizing agencies of the NSFDC.

Managed by: NSFDC Admin (rakhi.morwal@gov.in)
on 30 October, 2020