Allocation of Funds & Security

NOTIONAL ALLOCATION OF NSFDC FUNDS TO BE DISBURSED

1. At the beginning of the each financial year, NSFDC notionally allocated funds to the State Channelizing Agencies (SCAs) / Channelizing Agencies (CAs), in proportion to the Scheduled Caste population of the country represented by the respective State/UT Administration. 
2. The status of notional allocation vis-à-vis actual for each financial year, as on 31^st August, shall be reviewed by NSFDC before 15^th of September of that year, and in case allocated funds have not been availed by any SCA / CA, the funds earmarked for the SCA / CA may be re-allocated to other States(s)/UT(s).
3. From the financial year 2016-17 onwards, twenty percent of the notional allocation is aside for the cluster development.  The targets for cluster development shall be reviewed on quarterly basis.  The review shall be held by 10^th of succeeding month after end of each quarter and the un-availed portion of quarterly allocation for cluster development shall be transferred to performing channel partners that are willing to avail that amount for cluster development, on fulfillment of prudential norms.  Only in exceptional circumstances the SCAs / CAs will be permitted to utilize the notional allocation for cluster development for other purposes.

UNIT COST FOR TERM LOAN

Note

1. The release of these funds to SCAs / CAs shall however be subject to fulfillment of Prudential Norms such as (a) availability of adequate Government Guarantee/Bank Guarantee (b) There should not be any overdues payable to NSFDC which is more than one year old at the end of the preceding financial year (c) There should be a minimum of 80% cumulative utilization level of funds disbursed as at the end of preceding month upto the month of February and as at the end of preceding day during the month of March in a financial year .
2. The following prudential norms are to be followed by CAs (RRBs) for Disbursement of Funds by NSFDC :
   1. Net NPA must be less than 15% in at least 3 years out of last 6 years preceding to the year of disbursement.
   2. The RRB must be in profit (net profit) for at least in 3 out of last 6 financial years preceding to the year of disbursement. 
   3. The cumulative utilization level of earlier disbursements shall be 80% as at the end of preceding month for disbursement of funds till February end. However, for disbursement of funds in the month of March utilization level of 80% will be considered at the end of preceding day of disbursement.
   4. In case of Public Sector Bank, they should have provided Utilisation Certificate for interest switch over from Bank rate to NSFDC’s rate against earlier re-finance amount disbursed to them by NSFDC and there should not be any overdues payable to NSFDC at the time of disbursement.
3. SOCIAL PRIORITIES

Further, the SCAs are required to endeavour to cover target groups in accordance with the priorities laid down as under:

1. Educated unemployed/underemployed 50%
2. Women 40%
3. Others 10%

5. SECTORAL PRIORITIES

The SCAs are required to endeavour to achieve sectoral priorities in accordance with the percentages listed below:
Sectoral  Allocation

1. Agriculture & Allied 50%
2. Service 40%
3. Industry 10%

6. SECURITY SCAs shall provide Government Guarantee/Bank Guarantee to the NSFDC for the funds sanctioned to them, preferably as block guarantee.