National Minorities Development and Finance Corporation (NMDFC)

NMDFC is providing concessional finance for self-employment activities to eligible beneficiaries belonging to the minority communities, having a family income Rs. 81,000/-p.a. in Rural Areas and Rs. 1,03,000/- p.a. in Urban Areas.

The National Minorities Development & Finance Corporation (NMDFC) was incorporated on 30th September 1994, with the objective of promoting economic activities amongst the backward sections of notified minorities. To achieve its objective, NMDFC is providing concessional finance for self-employment activities to eligible beneficiaries belonging to the minority communities, having a family income Rs. 81,000/-p.a. in Rural Areas and Rs. 1,03,000/- p.a. in Urban Areas. As a special initiative, a new annual family income eligibility of up to Rs. 6.00 lakh per annum has been introduced with effect from September, 2014. This category will get concessional credit at a high rate of interest. The authorised share capital of NMDFC which stood Rs.650 crore in 2004 now stands at Rs.1500 crore.

  • Term Loan

    Scheme Details
    The scheme is for individual beneficiaries and is implemented through the SCAs. Under the Term Loan Scheme, projects costing up to Rs. 20.00 Lakhs are considered for financing. NMDFC provides loan to the extent of 90% of the project cost subject to a maximum of Rs. 18.00 lakh. The remaining cost of project is met by the SCA and the beneficiary. However the beneficiary has to contribute minimum of 5% of the project cost. The rate of interest charged from the beneficiary is 6% p.a. on reducing balance method. For higher income group of up to 6.00 lakh, the rate of interest is 8% for males and 6% for females.

  • Scheme Guidelines
    The steps for provision of term loan like collecting applications from the perspective beneficiaries, short-listing the applications through desk scrutiny and physical verification, interviewing the short-listed applicants by the Selection Committee (as per the existing procedure), selection of beneficiaries, sanction of loan and disbursement of loan taken up through the campaign approach.

  • FAQ: Click here to see FAQ
  • Micro Financing

    Secheme Deatils
    The scheme envisages micro–credit to the poorest among the poor through NGOs of proven bonafide and their network of Self Help Groups (SHGs). It is an informal loan scheme which ensures quick delivery of loan at the door steps of the beneficiaries. Under this scheme, small loans up to a maximum of Rs. 1.00 lakh per member of SHG are provided through the NGOs / SHGs. The scheme is implemented through the SCAs as well as the NGOs. Funds are given to the NGOs / SCAs at an interest rate of 1%, which further on-lend to the SHGs, at an interest rate not more than 7% p.a. The repayment period under the scheme is maximum of 36 months. For higher income group of Rs. 6.00 lakh per annum, the rate of interest is 10% for males and 8% for females.

  • Scheme Guidelines
    The eligibility conditions for the Minority members, Self Help groups, NGOs, loan amount, interest rate etc. would be as per the scheme of Micro financing of NMDFC.

  • FAQ: Click here to see FAQ

 

The existing concessional credit line of NMDFC has been bifurcated into two streams:-

Credit Line 1:- is the existing stream of concessional credit, being disbursed on the basis of existing income limits (₹81,000 p.a for rural areas & 1.03 lacs in urban areas), at the same concessional interest rate p.a.(TL-6%, EL-3%, MF-7%) although the quantum of credit has been increased (Max Limit of 10.00 lacs to ₹20.00 lacs under TL, 50,000 to 1.00 lac under MF & 10.00 lacs to 15.00 lacs under EL scheme) keeping in view the inflationary pressures & field level demand brought out in the Impact Study & Beneficiary Verification reports.

Credit Line – 1

i. Term Loan Scheme

This scheme is for individual beneficiaries and is implemented through the SCAs. Under the Term Loan Scheme, projects costing up to 20.00 Lakhs are considered for financing. NMDFC provides loan to the extent of 90% of the project cost subject to a maximum of ₹ 18.00 lacs. The remaining cost of project is met by the SCA and the beneficiary. However the beneficiary has to contribute minimum of 5% of the project cost. The rate of interest charged from the beneficiary is 6% p.a. on reducing balance method.

Assistance under Term Loan Scheme is available for any commercially viable and technically feasible venture, which for the purpose of convenience, are classified into the following sectors.

  • Agriculture & allied
  • Technical trades
  • Small business
  • Artisan and traditional occupations, and
  • Transport and services sector
Sr. No.
Parameters
Scheme Details
1.
Loan Amount
Up to 20.00 Lakhs
2.
Rate of Interest for beneficiaries
6% p.a.
3.
Rate of Interest for SCAs
3% p.a.
4.
Moratorium period
6 months
5.
Repayrnent period for beneficiaries
5 years
6.
Repayment period for the SCAs
8 years
7.
Means of Financing
NMDFC: SCA:Benef. contribution
90 : 5 : 5
8.
Utilization Period 3 Months
3 Months

ii. Educational Loan Scheme

This scheme is also for the individual beneficiaries and is implemented through the SCAs. The NMDFC extends educational loans with an objective to facilitate job oriented education for the eligible persons belonging to Minorities. Under this scheme, loan of up to 15.00 Lakhs is available at the rate 3.00 lakhs p.a. for ‘technical and professional courses‘ of durations not exceeding five years. Further, for courses abroad, maximum amount of 20.00 lakhs is available @ 4.00 lakhs per annum for a course duration of maximum 5 years. Funds for this purpose are made available to the SCAs at an interest rate of 1 % p.a. for on-lending to the beneficiaries at 3% interest p.a. The loan is payable in maximum five years after completion of the course.

Sr. No.
Parameters
Scheme Details
1.
Loan Amount Maximum

Loan amount per beneficiary is:– Up to ₹15.00 Lakhs for ‘Professional & JobOriented Degree Courses’ in India with amaximum duration of 5 years @ 3.00

-Up to ₹20.00 Lakhs for ‘Courses Abroad’ with a maximum duration of 5 years @ 4.00 Lakhs per annum.

2.
Rate of Interest for beneficiaries
3%p.a.
3.
Rate of Interest for SCA
1%p.a.
4.
Moratorium period
6 months after completion of the course or getting a job, whichever is earlier.
5.
Delegated authority to SCA tosanction loan
SCAs are advised to sanction/disburse loan based on ground reality.
6.
Repayment period for beneficiaries
5 years
7.
Repayment period for the SCA
5 years
8.
Means of Financing NMDFC : SCA : Beneficiary contribution
90 : 5 : 5

iii. Micro Financing Scheme

Under the Micro Financing Scheme, micro-credit is extended to the members of the Self Help Groups (SHGs), specially the minority women scattered in remote villages and urban slums, who are not able to take advantage of the formal banking credit as well as the NMDFC programmes, through its SCAs. NMDFC is implementing the scheme on the pattern of Grameen Bank of Bangladesh and Rashtriya Mahila Kosh (RMK). The scheme ‘requires that the beneficiaries are organized into Self Help Groups (SHGs) and get into habit of thrift & credit, however small.

The scheme envisages micro-credit to the poorest among the poor through NGOs of proven track-record and their network of Self Help Groups (SHGs). It is an informal loan scheme which ensures quick delivery of loan at the door steps of the beneficiaries. Under this scheme, small loans up to a maximum of ₹ 1.00 lacs per member of SHG are provided through the NGOs / SHGs. The scheme is implemented through the SCAs as well as the NGOs. Funds are given to the NGOs / SCAs at an interest rate of 1%, which further on-lend to the SHGs, at an interest rate not more than 7% p.a. The repayment period under the scheme is maximum of 36 months.

Sr. No.
Parameters
Scheme Details
1.
Loan Amount
Up to ₹ 1.00 lac per member of SHG
2.
Rate of Interest for SCA
1 % p.a.
3.
Rate of Interest for NGOs by SCAs
2% p.a. (Margin for SCA 1 %)
4.
Rate of Interest for SHGs by NGOs
7% p.a. (Margin for NGO 5%)
5.
Rate of Interest for SHGs by SCAs
7% p.a. (Margin for SCA 6%)
6.
Rate of Interest for Beneficiaries / SHGs
7% p.a.
7.
Rate of Interest for NGOs by NMDFC directly
1 % p.a. (Margin for NGO 6% p.a.)
8.
Moratorium period
3 months
9.
Delegated authority to SCA to sanction loan to NGOs / Federation
Limit of 25 Lakhs per NGO / Federation.
10.
Repayment period for the Beneficiaries
3 years
11.
Repayment period for the SCAs/ NGOs
4 years / 3 years
12.
Utilization Period for the SCAs / NGOs
3 months / 1 month
13.
Means of Financing NMDFC : SCA : Beneficiary contribution
90 : 5 : 5

iv. Mahila Samridhi Yojana

It is a unique scheme linking micro-credit with the training to the women members to be formed in to SHGs, in the trades such as tailoring, cutting and embroidery, etc. It is being implemented by NMDFC, through the State Channelising Agencies of NMDFC as well as NGOs. Under the Mahila Samridhi Yojana, training is given to a group of around 20 women in any suitable women friendly craft activity. The group is formed into Self Help Group during the training itself and after the training, micro-credit is provided to the members of the SHG so formed. The maximum duration of the training is of six months with maximum training expenses of ₹ 1,500 p.m. per trainee. During the training a stipend of ₹ 1,000 p.m. is also paid to the trainees. The training cost and stipend is met by NMDFC as grant. After the training, need based micro credit subject to a maximum of ₹ 1.00 lac is made available to each member of SHG, so formed at an interest rate of 7% p.a.

Credit Line 2 :- concessional credit is provided to the section of Minority population with annual family income of up to ₹6.00 lacs, defined on the basis of “Creamy Layer” criterion of OBC by Government of India. It will get concessional credit at a higher rate of interest (Max – 8% for males, 6% for females under TL; 10% for males & 8% for females under MF; 8% for males & 5% for females under EL) than available under Credit Line – 1 and will be considered for all schemes of skill development, vocational education training & women empowerment being run by Maulana Azad National Academy for Skills (MANAS). The parameters of Credit line – 2 will normally be applicable for the training program under MANAS as well as its collaborators. However, persons interested from the Credit Line -1 with lower annual family income criterion, will also be considered for higher quantum of loan with higher interest rates, depending on their suitability, on case to case basis.

Credit Line – 2

The detail of the financing schemes of NMDFC with revised quantum of loan & rates of Interest is given below:-

i. Term Loan Scheme

This scheme is for individual beneficiaries and is implemented through the SCAs. Under the Term Loan Scheme, projects costing up to ₹ 30.00 Lakhs are considered for financing. NMDFC provides loan to the extent of 90% of the project cost subject to a maximum of ₹ 27.00 lacs. The remaining cost of project is met by the SCA and the beneficiary. However the beneficiary has to contribute minimum of 5% of the project cost. The rate of interest charged from the beneficiary is 8% p.a. on reducing balance method for male beneficiaries & 6% p.a for women beneficiaries.

Sr. No.
Parameters
Scheme Details
1.
Loan Amount
Up to ₹ 30.00 Lakhs
2.
Rate of Interest for beneficiaries
8% p.a. for male beneficiaries6% p.a for women beneficiaries
3.
Rate of Interest for SCAs
3% p.a.
4.
Moratorium period
6 months
5.
Repayrnent period for beneficiaries
5 years
6.
Repayment period for the SCAs
8 years
7.
Means of Financing NMDFC: SCA:Benef. contribution
90 : 5 : 5
8.
Utilization Period 3 Months
3 Months

ii. Educational Loan Scheme

This scheme is also for the individual beneficiaries and is implemented through the SCAs. The NMDFC extends educational loans with an objective to facilitate job oriented educationfor the eligible persons belonging to Minorities. Under the scheme an amount of upto 20.00 Lakhs is available at the rate 4.00 lakhs p.a. for ‘technical and professional courses‘ of durations not exceeding five years. Further, for courses abroad, a maximum amount of 30.00 lakhs is available @ 6.00 lakhs per annum for course duration of maximum 5 years. Funds for this purpose are made available to the SCAs at an interest rate of 2 % p.a. for on-lending to the beneficiaries at 8% interest p.a for male beneficiaries & at 5% p.a for women beneficiaries. The loan is payable in maximum five years after completion of the course.

Sr. No.
Parameters
Scheme Details
1.
Loan Amount Maximum

Loan amount per beneficiary is:– Up to ₹20.00 Lakhs for ‘Professional & Job Oriented Degree Courses’ in India with a maximum duration of 5 years @ ₹ 4.00

– Up to ₹30.00 Lakhs for ‘Courses Abroad’ with a maximum duration of 5 years @ ₹ 6.00 Lakhs per annum.

2.
Rate of Interest for beneficiaries for male beneficiariesRate of Interest for beneficiaries for women
8%p.a.5% p.a.
3.
Rate of Interest for SCA
2%p.a.
4.
Moratorium period
6 months after completion of the course or getting a job, whichever is earlier.
5.
Delegated authority to SCA tosanction loan
SCAs are advised to sanction/disburse loan based on ground reality.
6.
Repayment period for beneficiaries
5 years
7.
Repayment period for the SCA
5 years
8.
Means of Financing NMDFC : SCA : Beneficiary contribution
90 : 5 : 5

iii. Micro Financing Scheme

This scheme envisages credit to the poorest amongst the poor through SCAs / NGOs and network of Self Help Groups (SHGs). It is an informal loan scheme which ensures quick delivery of loan at the door steps of the beneficiaries. Under this scheme, small loans up to a maximum of 1.50 lacs per member of SHG and 30.00 lacs to a group of 20 women are provided through the SCAs / NGOs & network of SHGs. Funds are given to the SCAs / NGOs, which further on-lend to the SHGs, at an interest rate not more than 10% p.a. for male beneficiaries & 8% p.a fro women beneficiaries.

Sr. No.
Parameters
Scheme Details
1.
Loan Amount
Up to ₹ 1.50 lac per member of SHGUp to ₹30.00 lacs for a group of 20 members in one SHG
2.
Rate of Interest for SCA
4% p.a. for male beneficiaries2% p.a for women beneficiaries
3.
Rate of Interest for NGOs by SCAs
5% p.a. (Margin for SCA 1 %) for male beneficiaries3% p.a (Margin for SCA 1%) for women beneficiaries
4.
Rate of Interest for SHGs by NGOs
10% p.a. (Margin for NGO 5%) for male beneficiaries.8% p.a. (Margin for NGO 5%) for women beneficiaries.
5.
Rate of Interest for SHGs by SCAs
10% p.a. (Margin for SCA 6 %) for male beneficiaries8 % p.a (Margin for SCAs 4 %) for women beneficiaries.
6.
Rate of Interest for Beneficiaries/SHGs
10% p.a. in case of male beneficiaries8 % p.a. for women beneficiaries.
7.
Rate of Interest for NGOs by NMDFC directly
4 % p.a. (Margin for NGO 6% p.a.) for male beneficiaries2% p.a (Margin for NGO 6% p.a) for women beneficiaries.
8.
Moratorium period
3 months
9.
Delegated authority to SCA to sanction loan toNGOs/Federation
Limit of ₹25 Lakhs per NGO/ Federation.
10.
Repayment period for the Beneficiaries
3 years
11.
Repayment period for the SCAs/NGOs
4 years / 3 years
12.
Utilization Period for the SCAs /NGOs
3 months / 1 month
13.
Means of FinancingNMDFC : SCA : Beneficiary contribution
90 : 5 : 5
NMDFC Equity
Toll-Free Helpline (Ministry Of Minority Affairs)
1800-11-2001

Managing Director

Maulana Azad Alpsankhyak Aarthik Vikas Nigam
DDA Building, 2nd Floor,
Old Custom House, Shahid Bhagat Singh Marg
,
MUMBAI – 400 023

022-22633351
22653080
22672293
22672294 (Fax)

For more details Click Below
: http://www.minorityaffairs.gov.in/nfdfc_equity
:
http://119.18.54.23/~nmdfc/119-2/
:
http://119.18.54.23/~nmdfc/credit-line-2/