National Cooperative Development Corporation

NCDC has been promoting development of Service and Industrial Cooperatives by providing financial assistance in the form of working capital loan and term loan for activities/ commodities / services under the purview of NCDC.

(A) Assistance to Service Cooperatives - It includes Agriculture Credit Cooperatives namely Primary Agricultural Credit Co-operatives (PACS), District Central Cooperative Banks (DCCBs), State Cooperative Banks (StCBs), Primary Co-operative Agriculture and Rural Development Banks (PCARDs), State Co-operative Agriculture and Rural Development Banks (SCARDs), Co-operative / Co-operative Federation of Women SHGs) and Cooperative societies at primary, district & State level primary and State level cooperative federation involved in activities/ services under the purview of NCDC.

NCDC is providing financial assistance to Service cooperatives for following services:-

1. Agricultural Credit – Under Agriculture Credit, NCDC is providing financial assistance to Agriculture Credit Co-operatives:

For development of infrastructural facilities of Agriculture Credit Co-operatives for undertaking agricultural credit activities. (Scheme1)
Towards working capital for their loans/advances for activities/services/commodities under the purview of NCDC (Scheme2)
For onward lending of short term loan to Women Self help groups(स्वयं शक्ति सहकर योजना3 )
For onward lending of long term loans for activities/cervices/commodities under the purview of NCDC. (दीर्घावधि कृषक पूँजी सहकार योजना4)

2. Hospital, Healthcare and Education – NCDC is providing financial assistance to cooperatives to undertake services such as hospital, healthcare and education for:

Creation, modernization, expansion, repairs, renovation of hospital, healthcare and education infrastructure
Margin money for raising working capital required for day-to-day
Working capital for day-to-day operations

Scheme for extending NCDC financial assistance to cooperatives for services in hospital, healthcare and education (Scheme5)
Ayushman Sahakar Scheme (Scheme 6)

3. Labour – The financial assistance to Labour cooperative is provided for :

Strengthening of Share Capital base/Margin Money assistance to Labour Cooperatives
Purchase of construction related machines and equipment, tools and tackles loading/unloading/packing equipment as relevant to labour cooperatives
Establishment/Construction of Service Complex/ Godown by Labour Cooperatives

4. Tourism & Hospitality, Transport, Electricity and Power generation through and Rural Housing - NCDC is providing financial assistance to cooperatives for :

Creation, modernization, expansion, repairs, renovation etc of infrastructural facilities relating to Tourism, Hospitality, Transport, generation and distribution of electricity by new, non-conventional and renewable source of energy and rural housing
Margin money for raising working capital required for day-to-day operation of above service other than rural housing
Working capital assistance to meet requirement for day-to-day operation of above service other than rural housing.

Scheme for extension of NCDC ‘s Financial Assistance to Co-operatives for Tourism, Hospitality, Transport, Electricity and Rural Housing (Scheme7)

5. NCDC is also providing financial assistance to cooperatives for undertaking service relating to water conservation works/services, irrigation, micro-irrigation in rural areas, Animal care/health, disease prevention, Rural sanitation/ drainage/ sewage systems and Agricultural Insurance through cooperatives for :

Creation, modernization, expansion, repairs, renovation etc of infrastructural facilities relating to above services
Margin money for raising working capital required for day-to-day operation of above service
Working capital assistance to meet requirement for day-to-day operation of above service

Mode of Funding:
Financial assistance is provided to Cooperative societies at primary, district & State level primary and State level cooperative federation through the State Govt. or directly to the eligible cooperatives.

Quantum of Assistance and Pattern of Assistance:
The quantum of assistance varies from activity to activity and upto 90-95% of the total cost for the most of the activities. However, in case of strengthening of share capital base/margin money/working capital assistance, the quantum of assistance can be upto 100%.

For detailed pattern of assistance please click here

(B) Assistance to Industrial Cooperatives – NCDC is proving financial assistance to Cooperative societies for promotion and development of industrial cooperatives for production, processing, marketing, storage, import and export of “industrial goods”. Assistance is provided to Cooperative societies at primary, district & state level primary and state level cooperative federation.( Scheme 8)

As per NCDC Act, Industrial goods mean the products of industrial cooperatives or cottage and village industries or products of allied industries in rural areas and include any handicrafts or rural crafts.
The financial assistance to Industrial cooperative is provided for:

Establishment of industrial work shed/ units including plant and machinery for production/fabrication/ assembling/ processing of industrial goods, handicrafts, rural crafts & other products.
Expansion/ modernization/ renovation of existing industrial cooperative units.
Construction of marketing infrastructure including showrooms/ warehouses/ transport vehicles etc.
Strengthening of share capital base/ margin money assistance and working capital to industrial cooperatives for business operations.

Mode of Funding:
Financial assistance is provided to Cooperative societies at primary, district & State level primary and State level cooperative federation through State Govt. or directly to the eligible cooperatives.

For detailed pattern of assistance please click here.

(C) Yuva Sahakar - Cooperative Enterprise Support and Innovation Scheme
To encourage newly formed cooperatives take advantage of innovative ventures, especially by societies with new/innovative idea, NCDC has introduced a new scheme titled, “Yuva Sahakar - Cooperative Enterprise Support and Innovation Scheme” linked to a Cooperative Startup and Innovation Fund created by NCDC (Scheme9)

(D) Norms for Direct Funding:
Cooperatives operating for minimum three years & broadly fulfilling following criteria are eligible for availing assistance from NCDC:

The society should have positive Net worth
There should be no erosion in share capital.
Cash profit in last three years and net profit in two years
Should be in a position to provide 1.25 to 1.5 times security.
Financial /operational performance of the cooperative should be at satisfactory level of NCDC.

For detailed norms of Direct Funding please click here.

(E) Detail of financial assistance provided to Service and Industrial Cooperatives during 2022-23 and cumulative since Inception

Rs. in crores

S.No.	Activity	Sanction (2022-23)	Release (2022-23)	Cumulative Release as on 31.03.2023
1	Service Coop	23,549.51	11,322.30	53,364.18
2	Industrial Coop.	0.00	0.00	11.66
3	Yuva Sahakar	1.73	0.10	0.68
4	Total	23,551.24	11,322.40	53,376.52

(F) Common Loan Application Form for availing assistance under the scheme of NCDC can be downloaded from NCDC’s website.

For further details, please contact or write to:

C,IC &SC Division
National Cooperative Development Corporation
4, Siri Institutional Area, Hauz Khas
New Delhi – 110 016

Tel No.: +91-011-20862512, 20862866, 20862490, 20862801
Fax: +91-011-26962370, 20862619, 26602568
Website: www.ncdc.in Email: mail@ncdc.in

CREDIT, INDUSTRIAL & SERVICE COOPERATIVES

For further details, please contact or write to: