CASE STUDY: NSEP

Purpose: To understand the functional requirements of NSEP Top-up program.

What is NSEP Top-up Program?: Issue: Employment barrier for under-graduates. Problems: Not getting employed soon after graduations Lack in financial planning No Easy loans. NSEP- National Self Employment Program will encourage the family and student to fund as much as they can and NSEP program to contribute the balance based on the predefined condition/rule.

Basic Program Description: Two Parts: Family Saving Contribution: Families contribute a specified sum every month for their child's education. NSEP Contribution: NSEP will give a top up contribution monthly, along with quarterly and annual bonuses(75% over their savings if commitments are followed).

Detailed Program Break Down and NSEP's Top Up Calculation: Target: Rural ,Non Vocational families (first/second/third year students). Spread Awareness about the Program. Registration and commitment: Interested Families should register Family commits to deposit a fixed amount every month.(2000-5000) Exceptional cases for commitment: Single parent/extremely straitened families. Account & Duration: RD account on student's name. Maturity Period: 12/24/36 months for first/second/third year students respectively. NSEP Related Top-Up Accounts: NSEP opens parallel RD account to hold top up for related students account. Only accessible by NSEP. Family Deposits: Must be deposited between 21st of previous month to 20th of current month. NSEP top-up deposits: Deposits are made by end of each month subject to: Bank confirmation for family deposit & if deposit is greater or equal to commitment..

 No top-up if family misses months or deposit less than commitment. No extra top-up for deposits greater than commitments. Annual & Quarterly deposits. Quarterly Bonus if last 3 months deposit greater than or equal to 3 times commitment & similarly for annual bonus, deposits must be greater than or equal to 12 times commitment. NSEP loan Module: Loan subjected to: Purpose of Loan 40% of the amount accrued in the NSEP student account. 2% simple interest on amount of loan. Repayment period 3-12 months. Installment due to 20th of particular month, Rs. 10/day till 25th , Deduction from NSEP account on 26th. Loan Officer: should be able to create loan ID. Expects system to generate a repayment schedule.