GROUP LOAN SCHEME

The Group Loan Scheme (GLS) offered by National Backward Classes Finance & Development Corporation (NBCFDC) and Tamilnadu Backward Classes and Economic Development Corporation (TABCEDCO) provides financial assistance to members of Self-Help Groups (SHGs) consisting of women/men/transgender to start small trades or businesses as a group. Each SHG can have a maximum of 20 members and must have been in existence for at least 6 months from the date of formation. The 60% of the SHG members should belong to backward classes, most backward classes and denotified communities. The SHG must undergo grading by the Project Officer (Mahalir Thittam) to assess eligibility. The scheme enables marginalized entrepreneurs of SHG to access affordable credit for income-generating activities such as micro-enterprises, handicrafts, agriculture, and small businesses. The initiative aims to promote self-employment, reduce reliance on informal lenders, and empower economically weaker sections with flexible repayment terms and possible subsidies.