The major activity of WBMDFC is to provide the financial assistance to the promising entrepreneurs and generate more employment opportunities. WBMDFC selects the beneficiaries who have adequate technical know-how and/or the aptitude to earn the required abilities. The loans provided by WBMDFC are never subjected to exemption but the effective rate of interest and repayment schedules are enough beneficiary-friendly.
TERM LOAN SCHEME UNDER NMDFC'S SELF EMPLOYMENT PROGRAMMES
Projects costing Rs.5000 to Rs.1 Lakh have been taken up mainly. Taxi loans have been given to 32 beneficiaries @ Rs. 3,04,000/- each in March'2000 for the first time exceeding Rs. 1 lakh loan. The present limit of loan is upto 5 lakhs of rupees. The Corporation is implementing Term Loan Scheme under NMDFC Self Employment Project. Under this Scheme NMDFC, the Corporation formed with the contribution from different State Governments through their State Corporations and Central Govt., releases loan to WBMDFC against the State Govt. Guarantee ( limited to Rs. 20 crore at present) to the extent of 85% of the approved Project Cost which is repayable in 20 quarterly instalments @ interest of 4.50% p.a. in case of loan upto Rs.2 lakh and of 7.50% in case of loan upto Rs.5 lakh. WBMDFC caters loan to the beneficiaries to set up self employment units, subject to fulfillment of certain terms and conditions to the extent of 95% of the Project Cost (85%-NMDFC's share and 10%-State Govt's share) which is repayable in 20 quarterly instalments @ interest of 7.50% p. a. in case of loan upto Rs.2 lakh and of 10.50% in case of loan upto Rs.5 lakh. This loan does not include any subsidy element. However , Khadi & Village Board, W.B., has been moved to allow us to work as approved financial institution participating their Margin Money Schemes so that the eligible beneficiaries selected by this Corporation for the approved Schemes of KVIB can get subsidy to the extent of 30% of the project cost as sanctioned by KVIB.
Apart from Term Loan Schemes there are several assistance schemes directly managed by the corporation. There are some other projects which are operated in cooperation with some NGOs.
THE SOURCES OF FINANCES ARE
THE STATE GOVERNMENT
National Minorities development and Finance Corporation(NMDFC)
[ A Joint Venture co-owned by Union and State Govts. ]