NSFDC Study Shows Credit Schemes Boost Jobs and Incomes

The study assessed the impact of financial assistance provided under NSFDC's credit-based schemes to 5,480 beneficiaries who received support during 2021-22, 2022-23 and 2023-24.

The National Scheduled Castes Finance and Development Corporation (NSFDC) has reported encouraging outcomes from its concessional credit schemes, with an independent evaluation showing significant improvements in income, self-employment and social status among beneficiaries across several states.

NSFDC, a Central Public Sector Enterprise under the Ministry of Social Justice and Empowerment, commissioned an impact evaluation during 2025-26 through the external agency Development Oriented Operations Research and Surveys (DOORS). The study assessed the impact of financial assistance provided under NSFDC's credit-based schemes to 5,480 beneficiaries who received support during 2021-22, 2022-23 and 2023-24.

The survey covered beneficiaries across Andhra Pradesh, Bihar, Gujarat, Himachal Pradesh, Jammu and Kashmir, Karnataka, Odisha, Puducherry, Punjab, Tamil Nadu and Tripura, examining how the loans influenced livelihoods, entrepreneurship and socio-economic development.

Income levels and self-employment record strong improvement

According to the study, 93.34% of beneficiaries used the financial assistance for its intended purpose, while 93.54% continued to own the assets created through the loans, indicating the long-term sustainability of the programme.

The evaluation also showed a clear improvement in household incomes. The share of beneficiaries with annual family incomes between ₹1.5 lakh and ₹3 lakh increased from 32.61% before receiving assistance to 46.28% afterwards. At the same time, the proportion of families earning below ₹1.5 lakh annually declined from 67.39% to 44.74%. Nearly 9% of beneficiaries crossed the annual family income threshold of ₹3 lakh following financial assistance.

Employment patterns also changed significantly. The proportion of beneficiaries who were self-employed increased from 46.62% before receiving loans to 73.95% afterwards. The most notable gains were recorded in non-agricultural self-employment, where participation rose from 35.64% to 59.42%, reflecting growing entrepreneurial activity supported by the schemes.

Women gain financial independence through targeted support

The study also highlighted the impact of NSFDC's programmes on women's economic participation. Of the 705 women identified as homemakers before receiving financial assistance, 674 women, representing 95.6%, became self-employed after accessing the schemes.

Beyond financial gains, beneficiaries also reported improvements in their social standing. More than 58% said their social status had improved significantly, while another 23% reported moderate improvement. Overall, 81.3% of respondents acknowledged that the financial support had strengthened both their economic condition and their position within society.

NSFDC said the findings reaffirm the effectiveness of its targeted credit programmes in promoting entrepreneurship, reducing poverty and encouraging self-reliance among Scheduled Caste communities. The corporation added that it will continue expanding outreach, improving service delivery and increasing access to affordable credit so that more eligible beneficiaries across India can build sustainable livelihoods.