National Cooperative Development Corporation (NCDC).

WHAT IS NCDC?

The National Cooperative Development Corporation (NCDC) is a statutory corporation established by the Government of India in 1962 under the NCDC Act. It functions under the Ministry of Cooperation and is headquartered in New Delhi. NCDC’s key mandate is to promote, strengthen, and develop cooperative societies across India, particularly in sectors like agriculture, agro-processing, marketing, and storage. It bridges the credit gap by providing financial and technical assistance to cooperative institutions.

WHY NCDC ESTABLISHED?

The government recognized the need for an apex body to guide and support the vast cooperative network in the country, which plays a crucial role in rural development and economic growth. Government created NCDC to provide financial assistance, technical guidance, and framework for comprehensive development. Its primary goal is to uplift rural communities, improve the livelihoods of farmers and weaker sections, and facilitate the creation of sustainable cooperative enterprises in sectors such as agriculture, processing, marketing, storage, and allied activities. By financing cooperatives with resources and expertise, NCDC ensures inclusive growth and reduces dependence on intermediaries, fostering self-reliance and prosperity among India’s rural population.

WHAT PROBLEAM NCDC IS ADDRESSING?

Addressing Financial Obstacles in Co-operative Banking

Many cooperative banks in India face periodic cash crunches, especially when extending loans to large buyers, small-scale farmers, or entrepreneurs. This shortage of readily available funds occurs due to reasons such as:

• Limited deposit base and insufficient reserves.
• Seasonal demand for agricultural and rural loans.
• Inadequate access to low-cost refinancing options.
• Regulatory capital requirements that stress operational resources.
• Difficulty in meeting the needs of both small and large borrowers simultaneously.

As a result, co-operative societies—which play a crucial role in rural development and economic inclusion—often struggle to provide timely and adequate credit.

HOW NCDC SOLVES THE PROBLEM?

1. Financial Support
   • Offers loans, grants, and subsidies to cooperative banks at concessional rates.
   • Helps in recapitalizing cooperative banks, ensuring compliance with Basel III capital adequacy norms for financial stability.
2. Refinancing Support
   • Collaborates with institutions like NABARD to offer refinancing for cooperative banks.
   • Supports credit extension for irrigation, farm mechanization, and horticulture.
3. Recapitalization Support
   • Assists banks in meeting regulatory capital requirements, such as those under the Vaidyanathan Task Force
4. Subsidized Credit
   • Operates schemes like Interest Subvention, enabling cooperative banks to offer 7% interest credit to small and marginal farmers.
5. Risk Coverage
   • Includes rural cooperative banks under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), offering up to 85% risk coverage on loans.
6. Aadhaar-Enabled Payment System (AePS)
   • Supports integration of rural cooperative banks with AePS, promoting biometric-enabled doorstep banking.

Major Initiatives by NCDC:

Tamil Nadu Cooperative Banks:

• In 2021, NCDC extended a ₹100 crore government guarantee for long-term credit revival.
• Backed with staff training programs through LINAC for enhanced capacity and compliance.

Sahakar-22:

Sahakar-22 a mission mode activity of NCDC, launched by Hon’ble Union Minister of Agriculture & Farmers’ Welfare to achieve the      Mission of New India by 2022 through Cooperatives for doubling the farmers’ income. The programme aims at the overall development of the districts by way of identification of viable sectors for funding, both in farm and non-farm sectors.

NCDC’S OPERATIONAL REACH

• Head Office: New Delhi.
• Regional Offices: 18 across India.
• Works closely with State Governments, Cooperative Banks, and Financial Institutions for program implementation and monitoring.

WHO CAN AVAIL LOANS FROM NCDC?

• Primary Cooperative Societies: Agricultural credit, marketing, and consumer cooperatives.
• State-Level Cooperative Federations: State cooperative banks, federations (dairy, marketing, etc.).
• District Cooperative Banks.
• Other Cooperative Institutions: Fisheries, handlooms, poultry, rural housing, etc.

TYPES OF LOANS OFFERED

• Working Capital Loans: For daily operations
• Term Loans: For infrastructure, machinery, and fixed assets
• Subsidy-Linked Loans: Under schemes related to cold chains, rural storage, etc.
• Refinance Support: To manage portfolios of existing loans

LOAN APPLICATION PROCESS

1. Identify Credit Gap
   • Assess liquidity and determine funding needs
2. Prepare Loan Proposal
   • Include purpose, amount, and repayment terms
3. Submit Required Documents
   • As per the NCDC checklist (see below)
4. Approach the NCDC
   • Apply via nearest regional office or head office in New Delhi
5. Loan Appraisal & Approval
   • Based on feasibility and financial assessment
6. Repayment
   • Follow the agreed schedule of principal and interest

APPLICATION DETAILS

• Form: Common Loan Application Form (Available online or at offices).
• Submission: Online, Regional, or Head Office.
• Evaluation: Strength and governance of cooperative evaluated before sanction.

CHECKLIST OF REQUIRED DOCUMENTS

1. Covering Letter (loan intent and duration)
2. Board Resolution (loan amount for working capital)
3. Filled Common Loan Application Forms A & B
4. No Overdue Certificate (CA certified, Annexure IV)
5. Copy of Bye-Laws and amendments
6. Translated Bye-Laws (if originally in Marathi)
7. Audited Financials: 3 years with schedules and audit reports
8. Details of Securities: FDRs, receivables, loans
9. Land Valuation Report (if applicable, via SBI valuer)
10. Bio-Data and Aadhaar of Board Directors
11. Disbursement Terms & Repayment Schedules till 2026-27
12. Loan Turnover Data: ST-Agri and ST-Non Agri
13. Types of Loans Disbursed
14. Demand & Recovery Percentages (last 3 years)
15. Gross & Net NPA with provisioning
16. Projected Turnover and Working Capital Requirements
17. Borrowing Power Certificate (CA certified)
18. Note on Bank Activities and Credit Requirements
19. Annual Reports (last 3 years)

CONTACT INFORMATION

Ladda Bhutada & Associates | 360 CompanyBecho Private Limited

• CS IP: Pramodkumar Ladda
• Address: Office No. 10, No. 55, Sukhniwas, 15 August Chowk, Mangalwar Peth, Pune – 411011
• Office Cell: +91 9284293227, 9309845448
• Personal Mob: +91 7972422151, 9595271145
• Email: info@csladda.com