Support for marginalized individuals for livelihoods and enterprise (SMILE Scheme)

Credit linked capital support for livelihood activities for poor SC households in unorganized sector who lost their prime bread earners due to COVID Pandemic.

Maximum Loan Limit: NSFDC provides loans up to 97% of the Project(s)/unit(s) costing up to Rs. 5.00 lakhs, subject to a maximum of Rs. 4.85 lakhs.

Rate of Interest: For Beneficiaries

For Beneficiaries                                               4.5% p.a

For Channel Partners                                         2% p.a.

Repayment Period: The loan is to be repaid in quarterly instalments within a period of 7 years including moratorium of up to one year. During the moratorium period, the loanees need not repay any principal amount. There shall be no moratorium on payment of interest.

Annexure -I

Support for marginalized individuals for livelihoods and enterprise (SMILE)

CREDIT LINKED CAPITAL SUPPORT FOR LIVELIHOOD ACTIVITIES for poor SC households in unorganized sector who lost their prime bread earners due to COVID Pandemic  

(Outline of the scheme)

  1. NAME OF THE SCHEME :  SMILE (Support for marginalized individuals for livelihoods and enterprise) – Credit Linked Capital Subsidy as Support for Livelihood Activities for poor SC households in unorganized sector who lost their prime bread earners due to COVID Pandemic  

       2.  OBJECTIVES

The objective of the scheme is to identify a livelihood project which produces sustainable income so that the household ravaged by COVID will be able to secure decent income. Under this, it is proposed to extend financial support in the form of soft for income generating activities. The benefit will be available to such families whose prime bread earners lost their lives due to COVID-19. Under this Scheme, soft loan shall be given to the eligible immediate relative of the deceased to support his/her family for any need based self-employment ventures with a project cost of up to Rs.5.00 lakh per unit.

3.       ELIGIBILITY

             a)     Members of Scheduled Castes community.

b)     Applicant’s annual family income should be up to Rs.3.00 Lakh.  

c)     Immediate relative of the person who died due to COVID-19 and was the prime bread earner of the family.

d)     Documents admissible as proof of death of the prime bread earner by COVID-19: Death certificate issued by the Registrar Births & Deaths or local municipal body or Receipt issued by local Authority at cremation ground/ graveyard. In case the death has occurred in a village, the letter of the Block Development Officer (BDO) of the village can also be accepted.

4.       Project Cost & Pattern of Funding:

Project/Unit Cost

Up to Rs.5.00 lakh per unit

Loan Amount per unit

(NSFDC)

95% to 97% of project cost subject to maximum of up to Rs.5.00 lakh per unit

Promoter’s Share

3% to 5%

 PATTERN OF FINANCE

  • NSFDC Share                             - 95 to 97%
  • Beneficiary contribution               - 3% to 5%

RATE OF INTEREST

  • From Beneficiaries                      - 4.5% p.a.
  • From Channel partners               - 2% p.a.

5.     Norms for disbursement of funds for SCAs/CAs:

Funds will be disbursed to the SCAs subject to availability of adequate State Government/Bank Guarantee.  However, funds to the other CAs would be released as per their eligibility of funding under NSFDC schemes. 

6.     Proposed Incentives to Successful Beneficiaries:

In order to incentivize the successful beneficiaries who have created assets and used the credit and capital subsidy for the intended purpose and repaid the full amount in time. It is proposed that such cases may be given additional interest rebate @ 0.50% by NSFDC on total loan amount disbursed by the SCA/CA to each beneficiary.  Further, such beneficiaries can be offered second time loan of a higher quantum to upscale their business in the same line or diversified field.

7.     Repayment

Loans provided under SMILE are to be repaid in quarterly installments within a period of up to 7 years including moratorium of up to one year. During the moratorium period, the loanees need not repay any Principal amount.  There shall be no moratorium on payment of interest.

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Appendix -I

FORMAT FOR SUBMISSION OF PROPOSAL FOR SANCTION  UNDER SMILE SCHEME

Name of the State & SCA/CA: _______________________________

(Rs. in lakh)

S.No.

Name of Dependent of SC Covid Prime Bread earner death case alongwith address and Contact No.  

Aadhar No of Dependent

Name of prime bread earner died due to Covid

Relation with Dependent

Date of Death

 Rural

Urban

Loan details

M

F

M

F

Project/ Activity

Project Cost

NSFDC Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
                         

 

 

This is to certify that all required documents from the applicants obtained and the applicant listed above are eligible as per eligibility criteria under the scheme (SMILE).

 

 

 Signature & Stamp Authorized Signatory

 

Appendix  -II

UC Details of persons covered  UNDER SMILE SCHEME

Name of the State & SCA/CA  : _______________________________

(Rs. in lakh)

S.

NO.

 

 

 

NAME & ADDRESS OF PERSON assisted under the scheme

AGE/ SEX

Annual Family Income

Beneficiaries

 

 

Disbursement of Funds

Remarks

 

Unit Cost

NSFDC Share  

Date

RTGS/ Cheque/ DD No.

  

 

 

  

Rural

Urban

 

M

F

M

F

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 
This is to certify that all the above beneficiaries covered are eligible for assistance as per eligibility criteria under the scheme (SMILE) of NSFDC.

 

 Signature & Stamp Authorized Signatory

 

Appendix -III

FORMAT FOR CLAIMING INTEREST SUBSIDY UNDER SMILE SCHEME

Name of the State & SCA/CA: _______________________________

(Amount in Rs.)

S. No

Name & Address of person assisted under the scheme

 

Loan Disbursed

(NSFDC Share) 

Repayment received from beneficiary in time

Interest Subvention

(0.5% of the Loan amount)

Remarks

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This is to certify that all the above beneficiaries have created asset and used the credit and capital subsidy for the intended purpose & the details of interest subvention  under  the  SMILE Scheme of NSFDC are true and correct.

 

 Signature & Stamp Authorized Signatory

 

Appendix -IV

NATIONAL SCHEDULED CASTES FINANCE & DEVELOPMENT CORPORATION, DELHI

Standard Operating Procedures (SOP) for recommending proposals under SMILE scheme by SCAs/CAs to NSFDC.

The SCA/CA shall forward proposals by taking the cases where death of  prime bread earner occurred due to COVID.   The proposal will be submitted along with the recommendation letter under the scheme as per the specific format (Appendix –I).

The step-wise Standard Operating Procedure is given as under:

 

STEP-I

(a)        Norms for forwarding the proposal :

The SCAs/CAs shall forward proposals as per the prescribed format through a letter subject to fulfillment of the following prudential norm:

i)          Availability of adequate State Government Guarantee (in case of SCAs)/fulfilling the norms for availing funds (in case of CAs).   

(b)

  1. NSFDC shall examine the proposals and issue a Letter of Intent (LOI) to the SCAs/CAs.
  2. The SCAs/CAs shall obtain the documents fulfilling the eligibility criteria like Caste Certificate, Income Certificate, proof of Immediate relative of the person who died due to COVID-19 and was the prime bread earner of the family, proof of Age and Death Certificate from the Competent Authority as mentioned in the policy. The all above documents will be maintained in records by the SCAs/CAs for future inspection of NSFDC, if needed.
  3. On receipt of the proposal, NSFDC will process the same and if found in order, after the approval of Competent Authority, sanction letter (Letter of Intent) will be issued to respected SCAs/CAs.

STEP-II

(a)        Norms for Disbursement:

As per the request of the SCAs/CAs, the disbursement shall be considered as per the Letter of Intent (LOI) in all the cases where Government/Bank Guarantee is available for the SCA and Prudential Norms for disbursement is fulfill in case of CAs.  The fund will be released upfront.  However, the SCAs/CAs can also claim refinance/reimbursement in case the fund is released to the beneficiaries by them as per sanctioned LoI. 

(b)        Procedure for Availing Funds and reporting utilization:

The SCAs/CAs shall send the copy of  Letter of Intent  duly signed and stamped on all pages by an authorized signatory of SCAs/CAs and specific request for disbursement of funds. However, the funds utilization will be accepted on receipt of beneficiaries-wise utilization detail as per the prescribed format (Appendix -II).

STEP-III

            Claiming of Interest Subvention:  

In order to incentivize the successful beneficiaries who have created assets and used the credit  for the intended purpose and repaid the full amount in time. In such cases Interest subvention  @ 0.50% will be given by NSFDC on total loan amount disbursed by SCA/CA to each beneficiary.  The claim should be submitted by SCAs/CAs in a prescribed format (Appendix-III). Further, such beneficiaries can be offered second time loan of a higher quantum to upscale their business in the same line or diversified field.

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Managed by: NSFDC Admin (rakhi.morwal@gov.in)
on 01 September, 2022