Aajeevika Micro-Finance Yojana (Livelihood Microfinance Scheme)

This topic of “Aajeevika Micro-Finance Yojana (Livelihood Microfinance Scheme)” is important from the perspective of the UPSC IAS Examination, which falls under General Studies Portion.


  • Credit-based scheme for Scheduled Caste entrepreneurs by the Ministry of Social Justice and Empowerment
  • Aajeevika Micro-Finance Yojana


  • Ministry of Social Justice and Empowerment

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  • To provide prompt and need-based microfinance to eligible Scheduled Caste persons at a reasonable interest rate through Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIs) to pursue small/micro business activities


  • Financial Assistance up to 90% of Project Cost of Rs. 1,40,000 for small income-generating activities at Interest rates chargeable at 11% (10% for Women)
  • Interest subvention @ 2% per annum from NSFDC on timely full repayment of dues on a yearly basis for individual borrowers
  • Repayment period within 3 and ½ years, in quarterly installments from the date of each disbursement, including the moratorium period
  • After repayment of earlier loan, the eligible beneficiaries can avail further loan under NSFDC schemes from NBFC-MFIs or other channelizing agencies of the NSFDC


  • The scheme is for entrepreneurs of the Scheduled Caste Category

Implementation Strategy:

  • Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI) must fulfill certain norms to be eligible for financial assistance from NSFDC, such as registration with the RBI as NBFC-MFI, following all RBI norms related to Micro Finance, having 3 years of continuous profit track record, having Gross Non-Performing Assets (NPA) less than 2%, and more.
  • Interest rate for individual borrowers is 5% p.a. for Men and 4% p.a. for Women from NSFDC to NBFC-MFI, and 12% p.a. for Men and 13% p.a. for Women from NBFC-MFI to beneficiaries.
  • Interest rate for Self Help Groups is 3% p.a. for Men and 2% p.a. for Women from NSFDC to NBFC-MFI, and 11% p.a. for Men and 10% p.a. for Women from NBFC-MFI to beneficiaries.

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