The Ministry of Social Justice and Empowerment has highlighted how a member of an Other Backward Class community in Kerala used support from the National Backward Classes Finance and Development Corporation (NBCFDC) to move from wage employment to self-employment. The case study shows how targeted lending schemes can help skilled workers acquire their own business assets.
How the scheme worked
Sunil Kumar K.P., from the Thiyya community in Kerala, worked as a private vehicle driver earning ₹5,000 per month. Despite having driving skills, his low wages left him unable to save enough money to buy a vehicle of his own. In 2022, he learned about the NBCFDC loan scheme through the Kerala State Backward Classes Development Corporation (KSBCDC). He received a term loan of ₹2.69 lakh, which he used to purchase an autorickshaw.
After becoming self-employed as an autorickshaw operator, his income increased significantly. His monthly earnings rose to approximately ₹20,000, representing a four-fold jump from his earlier wage work. This increase allowed him to better manage household expenses and improve his family’s overall standard of living.
The NBCFDC is a central financing body designed to provide credit support to members of Other Backward Classes who wish to start or expand their own businesses.
What this means for you
If you belong to an OBC category and lack access to capital for starting a small business or acquiring livelihood assets, schemes like NBCFDC offer an alternative to traditional bank lending. The example suggests that timely credit access, combined with existing skills or experience, can help transform income levels and create pathways to self-employment. You can approach your state’s Backward Classes Development Corporation to learn about eligibility and loan options available in your area.