- Nagaland has been the State selected for experimenting with a Pilot scheme whereby the VDBs will take up the responsibility of obtaining loans from the Banks and its disbursal to beneficiaries and also for recovery of the same, for which initially, 25 VDBs selected were declared as Financial Intermediaries for the purpose. A Corpus Fund of Rs. 1.00 lakhs was created through contributions of VDBs (40%), Govt. of India (20%), NABARD (20%) and Govt. of Nagaland (20%), which has now been revised as follows:
(a) NABARD -Rs. 1,00,000/-
(b) State Govt. -Rs. 1,00,000/-
(c) VDB -Rs. 40,000/-
- This Corpus Fund is kept in the Savings Bank Account and the Bank in turn will provide initially a matching share of Rs. 1.00 lakh, the Corpus Fund and the matching share together would be the Revolving Fund Assistance (RFA) that will be available to the VDBs for loan. This Bank loan at 7.5 % interest is to be obtained by the VDBs who in turn were to disburse the amount for further lending against the schemes, projects enterprises etc. at a higher maximum permissible interest of 18 %. The VDBs, in turn will take on the responsibility of recovery of this loan within a time frame and penalty for the default also to be borne by them. Based on the experience and the success of the initial loan provided at 1:1 matching share of the Bank against the Corpus Fund, the quantum of loan available can be raised to 1:4, which would mean that on a Corpus Fund of Rs. 1.00 lakh, the total fund available as loan would be Rs. 5.00 lakhs.
- With the successful implementation of the Pilot Project, the State Govt. has decided to cover all the VDBs as Financial Intermediaries in phase-manner. NABARD has agreed to participate in the process/implementation of the scheme, initially for Longleng and Kiphire Districts during 2012-13 which will gradually cover the remaining Districts as well.