The National Backward Classes Finance and Development Corporation (NBCFDC) and the National Scheduled Castes Finance and Development Corporation (NSFDC) recently signed a Memorandum of Understanding (MoU) with the Central Bank of India to implement the Vanchit Ikai Samooh aur Vargon ki Aarthik Sahayta (VISVAS Yojana).
The Ministry of Social Justice and Empowerment is in charge of promoting this Yojana.
VISVAS Yojana - Overview
VISVAS Yojana is a financial empowerment scheme for economically marginalised OBC/SC Self Help Groups (SHGs) and individuals.
With a rapid interest subvention benefit of 5% straight into the standard accounts of borrowing beneficiaries, the Scheme will assist OBC/SC SHGs with loans up to Rs.4 lakh and OBC/SC individuals with loans up to Rs.2 lakh.
VISVAS Yojana was valid for 2020- 2021. Further extension is dependent on the Scheme's effect assessment being evaluated.
VISVAS Yojana Objective
Interest subvention would be offered under VISVAS Yojana to Self Help Groups with 100 per cent OBC members and OBC people who have received loans from Lending Institutions that have signed MoAs with NBCFDC for various income-generating activities.
The government thinks that implementing VISVAS Yojana will reduce the burden of interest on the poor. The Centre is likely to provide Rs 65 crore to the Scheme, which will allow for a 5% interest subsidy on modest loans worth Rs 1,075 crore to marginalised SCs and OBCs.
Eligibility of VISVAS Yojana
The following criteria must be met to avail the VISVAS Yojana benefits:
- Backwards-class members, as determined by the Central Government/State Governments from time - to - time.
- The applicant's family's annual income must be lower than Rs. 3.00 lakh.
- SHGs must be recognised with NRLM/NULM/NABARD and have a credit history of at least two years.
- To be qualified for Interest Subvention, SHGs/Individuals should have made all of their payments on time.
- Interest Subvention is offered to all OBC Antoday Anna Yojana (AAY) cardholders and
- OBC individuals face 3 or more Sufferings in SECC-2011, as per records accessible at the relevant BDO Office.
- All OBC beneficiaries engaged in agricultural operations and covered under PM Kisan will be eligible for Interest Subvention coverage.
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Features of the VISVAS Yojana
The features of VISVAS Yojana are:
- SHG loan maximum limit: Rs. 4.00 lakh
- Maximum loan amount (for an individual): Rs. 2.00 lakh
- Amount of Maximum Subvention: 5% per annum
The subvention payment method is through direct deposit of subsidy funds into an SHG or an individual's operational account.
VISVAS Yojana, or Vanchit Ikai Samooh aur Vargon ki Aarthik Sahayta, was introduced by the Ministry of Social Justice and Empowerment to help organisations or SC and OBC households having an annual income of up to Rs 3 lakh.
The goal of the program is to get more credit into the hands of the poorest households so they can engage in productive as well as economic activities.
FAQs on VISVAS Yojana
Q.1. Are all SHGs qualified for the VISVAS Yojana scheme's interest subsidy?
Only SHGs with 100 per cent SC/OBC members and Standard Accounts are eligible to participate in this interest subsidy of VISVAS Yojana.
Q.2. Are SHGs that receive a subsidy under another program eligible for VISVAS Yojana
No, Self-Help Groups that get interest subsidies under the VISVAS Yojana program are not eligible for rate subsidies under any other program.
Q.3. What are the features of VISVAS Yojana?
The features of VISVAS Yojana are SHG loan maximum limit: Rs. 4.00 lakh, Maximum loan amount (for an individual): Rs. 2.00 lakh and Amount of Maximum Subvention: 5% per annum.
Q.4. The applicant's income must be less than what to apply for VISVAS Yojana?
The applicant's family's annual income must be lower than Rs. 3.00 lakh to apply for VISVAS Yojana.
Q.5. What are the benefits of the VISVAS Yojana?
The VISVAS Yojana would help with quick cash because it would credit individuals' and SHGs' operational accounts via direct beneficiary transfer.