The Micro Credit Finance Scheme, implemented by the Department of Social Justice & Special Assistance of the Government of Maharashtra and funded by the National Scheduled Castes Finance and Development Corporation (NSFDC), is a transformative initiative aimed at uplifting economically disadvantaged members of the Charmakar community. This scheme provides financial assistance to Below Poverty Line (BPL) individuals, enabling them to invest in income-generating activities such as footwear and leather goods production. By promoting entrepreneurship and skill development, this program seeks to enhance the social, economic, and educational standing of beneficiaries while fostering their integration into mainstream society.

Objective of the Scheme

The primary objectives of the Micro Credit Finance Scheme are;

• To uplift the lifestyle of economically disadvantaged Charmakars (Dhor, Chambhar, Holar, Mochi, etc.) who belong to the BPL category.
• To encourage the production of footwear and leather articles for government supply and open market sales.
• To empower beneficiaries through financial inclusion and entrepreneurship opportunities.
• To reduce poverty and improve the socio-economic status of the Charmakar community.

Key Benefits

1. Financial Support: Loans ranging from ₹25,000 to ₹50,000 are provided for income-generating activities.
2. Low Interest Rate: A nominal interest rate of 5% per annum ensures affordability and ease of repayment.
3. Subsidy: A subsidy of ₹10,000 is provided to reduce the financial burden on beneficiaries.

Eligibility Criteria

To qualify for the Micro Credit Finance Scheme, applicants must meet the following criteria;

1. Community: The applicant must belong to the Charmakar Community.
2. Age: The applicant should be between 18 to 50 years of age.
3. Residency: The applicant must be a permanent resident of Maharashtra.
4. Income :
   • For the 50% Subsidy Scheme: Annual income must be below the poverty line.
   • For the NSFDC Scheme: Annual income should not exceed ₹98,000 for rural areas and ₹1,20,000 for urban areas.
5. Documentation: The applicant must provide an Income Certificate and Caste Certificate issued by an authorized government officer.
6. Business Knowledge: The applicant should possess knowledge or skills related to the business for which they are applying for the loan.

How to Apply – Offline Process

The application process for the Micro Credit Finance Scheme is entirely offline. Follow these steps to apply;

Step 1: Visit the District Office

• Visit the District Office of the Leather Industries Development Corporation of Maharashtra (LIDCOM) during office hours.
• Request a hard copy of the prescribed application form from the concerned authority.

Step 2: Fill Out the Application Form

• Complete all mandatory fields in the application form.
• Paste a passport-sized photograph (signed across, if required).
• Attach self-attested copies of all mandatory documents.

Step 3: Submit the Application

• Submit the duly filled and signed application form along with the required documents to the concerned authority within the prescribed period (if applicable).

Step 4: Obtain Acknowledgement

• Request a receipt or acknowledgment slip from the authority. Ensure that the receipt includes essential details such as the date and time of submission, and a unique identification number (if applicable).

Documents Required for Application

Applicants must submit the following documents along with the application form;

1. Passport-sized photograph.
2. Aadhaar Card.
3. Income Certificate.
4. Caste Certificate.
5. Proof of residence.
6. Bank passbook or bank account details.
7. Any other documents as specified by the authorities.

Frequently Asked Questions (FAQs)

Q1: What is the Micro Credit Finance Scheme?

A: It is a government-backed scheme providing financial assistance to economically disadvantaged members of the Charmakar community to help them start income-generating activities.

Q2: Who can apply for this scheme?

A: Members of the Charmakar community who are below the poverty line, aged between 18 to 50 years, and permanent residents of Maharashtra are eligible to apply.

Q3: What is the age limit for applicants?

A: The applicant must be between 18 to 50 years of age.

Q4: What is the maximum loan amount available under this scheme?

A: The loan amount ranges from ₹25,000 to ₹50,000, depending on the nature of the business activity.

Q5: What is the interest rate for the loans?

A: The interest rate is 5% per annum, making it affordable for beneficiaries.

Q6: Is there a subsidy provided under this scheme?

A: Yes, a subsidy of ₹10,000 is provided to reduce the financial burden on beneficiaries.

Q7: What is the income limit for applicants?

A:

• For the 50% Subsidy Scheme: Annual income must be below the poverty line.
• For the NSFDC Scheme: Annual income should not exceed ₹98,000 for rural areas and ₹1,20,000 for urban areas.

Q8: Can the loan be used for any type of business?

A: The loan is primarily intended for businesses related to footwear and leather goods production. However, other income-generating activities may also be considered based on eligibility.

Conclusion

The Micro Credit Finance Scheme is a lifeline for economically disadvantaged members of the Charmakar community, offering them the tools and resources needed to break the cycle of poverty. By providing affordable loans, subsidies, and support for income-generating activities, this initiative empowers beneficiaries to build sustainable livelihoods and contribute to the economy.

For further assistance or queries, contact;

• Leather Industries Development Corporation of Maharashtra (LIDCOM)
• Email/Contact Details: Refer to your local district office for specific contact information.
• Official Website: Click Here

If you or someone you know qualifies for this scheme, don’t hesitate to apply and take the first step toward financial independence and social empowerment!