The loan applications are submitted by the beneficiaries to the District Offices of State Channelizing Agencies (SCAs) of NSKFDC/ Branches of Regional Rural Banks(RRBs)/Nationalised Bank. The District Offices of SCAs/Branches of RRBs/Nationalised Banks send these applications after scrutiny to their Head Offices. The viability of the project proposals are being appraised by the SCAs/ RRBs/Nationalised Banks and the viable projects are sent to NSKFDC along with their recommendations.

The said project proposals are also appraised by the Project Appraisal Committee of NSKFDC and the proposals which are found to be in order, are placed before the Board of Directors for consideration and sanction. After sanction by the Board of Directors of NSKFDC, the sanction letters, also called Letter of Intents, are issued  to the SCAs/RRBs/Nationalised for acceptance.

After acceptance of the terms and conditions of the sanction and execution of loan agreement/other documents, funds are released to the SCAs/RRBs/Nationalised Bank for onward disbursement to the beneficiaries.  The release of funds is being made by NSKFDC on receipt of demand from the SCAs/RRBs/Nationalised Banks  after considering all the parameters of release as  per the Lending Policies & Guidelines (LPG) of NSKFDC.