Loan Schemes

Schemes and Programmes of NMDFC

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

1) Credit Line 1:
is the existing stream of concessional credit, being disbursed on the basis of existing income limits (Rs.81,000 p.a for rural areas & Rs.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 Rs.10.00 lacs to Rs.20.00 lacs under TL, Rs.50,000 to Rs.1.00 lac under MF & Rs.10.00 lacs to Rs.15.00 lacs under EL scheme) keeping in view the inflationary pressures & field level demand brought out in the Impact Study & Beneficiary Verification reports.

2) Credit Line 2:
concessional credit is provided to the section of Minority population with annual family income of up to Rs.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 – 1

Term Loan Schemes

(The scheme is for individual beneficiaries and is implemented through the SCAs).

Under the Term Loan Scheme, projects costing upto Rs.5 Lacs are considered. NMDFC provides loan to the extent of 85% of the project cost subject of a maximum of Rs.4,25,000. 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. Rate of interest charged from beneficiaries is 6% p.a. on reducing balance.

Assistance under Term Loan Scheme is available for any commercially viable and technically feasible ventures which for convenience are classified into following sectors:

  1. Agriculture & Allied
  2. Technical Trade
  3. Small Business
  4. Artisan & Traditional Occupations
  5. Transport and Service sector
S. No. Parameters Scheme Details
1 Loan Amount Up to Rs. 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

An illustrative list of self-employment projects grouped under the above referred sectors is given in Annexure-II. The list is illustrative and not exhaustive.

Margin Money Schemes

(The scheme is for the individual beneficiaries and is implemented through the SCAs)

Margin money assistance is provided to beneficiaries availing Bank Finance. Generally Public Sector Banks finance upto 60% of the project cost and seek 40% margin money from the beneficiaries. Under Margin Money Loan Scheme, NMDFC provides loan to the eligible beneficiaries to meet the requirement of margin money asked by the bankers. For this purpose, loan upto 25% of the project cost subject to a maximum of Rs.1.25 lacs per unit is made available. The SCA and the beneficiary are expected to contribute the remaining amount. Rate of interest charged form the beneficiaries is 3% p.a. on reducing balance.

Educational Loan Schemes

(The scheme is for the individual beneficiaries and is implemented through the SCAs)

NMDFC has introduced the scheme of Educational Loans with the objectives to facilitate job-oriented education amongst the weaker section of the minorities. The scheme envisages maximum loan of Rs.50,000/- every year for pursuing professional & technical courses of duration not exceeding 5 years. Funds for this purpose are made available to the SCAs at interest rate of 1% for lending to the beneficiaries at 3%. The loan is repayable maximum in 5 years after completion of the course.

S. No. Parameters Scheme Details
1 Loan Amount Maximum Loan amount per beneficiary is:-
  1. Up to Rs.15.00 Lakhs for 'Professional & Job Oriented Degree Courses' in India with a maximum duration of 5 years @ Rs. 3.00
  2. Up to Rs.20.00 Lakhs for 'Courses Abroad' with a maximum duration of 5 years @ Rs. 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 to sanction 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
Micro Financing Schemes

(The scheme is for the members of Self Help Groups and is implemented through the SCAs as well as NGOs).

NMDFC launched scheme of Micro Financing in 1998 on the pattern of Grameen Bank of Bangladesh and Rashtriya Mahila Kosh under the Department of Women and Child Development in our country. The scheme envisages micro credit to poorest among poor through selected NGOs of proven bonafide and their network of Self Help Groups. It is an informal loan scheme which ensures quick delivery of loan at the door steps of the beneficiaries with a constant follow up. It also envisages a pre-requisite that the beneficiaries are first organized into Self Help Groups and get into habit of effecting regular savings, however small. Under the scheme, loan up to maximum of Rs. 25,000 per beneficiary can be provided. The funds are made available to NGOs @1% interest p.a. who further lend to the SHGs @5% interest p.a. The repayment period is maximum of 36 months.

S.No Parameters Scheme Details
1 Loan Amount Up to Rs. 1.00 lac per member of SHG
2 Rate of Interest for SCA l% 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 NGOs by NMDFC directly 1 % p.a. (Margin for NGO 6% p.a.)
7 Rate of Interest for Beneficiaries/SHGs 7% p.a.
8 Moratorium period 3 months
9 Delegated authority to SCA to sanction loan to NGOs/Federation Limit of Rs.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
Interest Free Loan for Promotion of SHG's

(The scheme is directly implemented by NMDFC through NGOs)

Financial assistance in the form of interest free loan is provided to the NGOs for promotion of Self Help Groups (SHGs). The maximum amount of loan available is Rs.2.15 Lacs for promotion of 50 SHGs of about 1000 members. The loan is repayable after one year and is adjusted by way of grant at the rate of 25% of the loan advanced by the SHGs and %on their growth of savings (provided the growth in savings is at least 10% over the last year).

Mahila Samruddhi Yojana

(The scheme is implemented through NGOs as well as SCAs).

Under Mahila Samridhi Yojana, training is given to a group of around 20 women in any suitable craft activity.

The group is formed into a Self Help Group during the training itself and after the training, micro-credit is provided to the members of SHG formed. The maximum duration of the training is of 6 months with maximum training expenses of Rs.500/- p.m. per trainee. During the training, a stipend of Rs. 250/-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 maximum of Rs. 25,000/-) is made available to each member of the Self Help Group so formed at interest rate of 4%.

CREDIT LINE – 2

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

Term Loan Scheme

This scheme is for individual beneficiaries and is implemented through the SCAs. Under the Term Loan Scheme, projects costing up to Rs. 30.00 Lakhs are considered for financing. NMDFC provides loan to the extent of 90% of the project cost subject to a maximum of Rs. 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.

S. No. Parameters Scheme Details
1 Loan Amount Up to Rs. 30.00 Lakhs
2 Rate of Interest for beneficiaries
  1. 8% p.a. for male beneficiaries
  2. 6% 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
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 the scheme an amount of upto Rs. 20.00 Lakhs is available at the rate Rs. 4.00 lakhs p.a. for 'technical and professional courses' of durations not exceeding five years. Further, for courses abroad, a maximum amount of Rs.30.00 lakhs is available @ Rs.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.

S. No. Parameters Scheme Details
1 Loan Amount Maximum Loan amount per beneficiary is
  1. Up to Rs.20.00 Lakhs for 'Professional & Job Oriented Degree Courses' in India with a maximum duration of 5 years @ Rs. 4.00
  2. Up to Rs.30.00 Lakhs for 'Courses Abroad' with a maximum duration of 5 years @ Rs. 6.00 Lakhs per annum.
2 Rate of Interest for beneficiaries for male beneficiaries Rate of Interest for beneficiaries for women
  1. 8%p.a.
  2. 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
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 Rs. 1.50 lacs per member of SHG and Rs.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.

S. No. Parameters Scheme Details
1 Loan Amount
  1. Up to Rs. 1.50 lac per member of SHG
  2. Up to Rs.30.00 lacs for a group of 20 members in one SHG
2 Rate of Interest for SCA
  1. 4% p.a. for male beneficiaries
  2. 2% p.a for women beneficiaries
3 Rate of Interest for NGOs by SCAs
  1. 5% p.a. (Margin for SCA 1 %) for male beneficiaries
  2. 3% p.a (Margin for SCA 1%) for women beneficiaries
4 Rate of Interest for SHGs by NGOs
  1. 10% p.a. (Margin for NGO 5%) for male beneficiaries.
  2. 8% p.a. (Margin for NGO 5%) for women beneficiaries.
5 Rate of Interest for SHGs by SCAs
  1. 10% p.a. (Margin for SCA 6 %) for male beneficiaries
  2. 8 % p.a (Margin for SCAs 4 %) for women beneficiaries.
6 Rate of Interest for Beneficiaries/SHGs
  1. 10% p.a. in case of male beneficiaries
  2. 8 % p.a. for women beneficiaries.
7 Rate of Interest for NGOs by NMDFC directly
  1. 4 % p.a. (Margin for NGO 6% p.a.) for male beneficiaries
  2. 2% 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 Rs.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
B. Promotional Schemes

Skill Development

The program is being implemented through MANAS - established by NMDFC on 11th November, 2014 as a Special Purpose Vehicle (SPV), set-up for meeting all skill development/up-gradation needs of Minority Communities. MANAS would operate in collaborative mode, primarily with National Skill Development Corporation (NSDC) and its partners, and with Government, Semi Government agencies, and other reputed large scale private agencies, working in this field.

Initially, the curriculum would be adopted from 26 Sector Skill Councils and other knowledge partners, having curriculum in consonance with National Occupational Standards (NOS)/ National Vocational Education Qualification Framework (NVEQF). The curriculum would also be developed by MANAS in collaboration with the actual employers of the skilled labour force, as per their requirement to ensure placements. The training facilities and infrastructure would be provided as per the norms, by NSDC partners and other large scale professional training providers, who would collaborate with MANAS for skills training. Certification would be done jointly by MANAS with Sector Skill Councils, and by and other Industry accepted accreditation & certification bodies / leading players, in their respective sectors, to ensure competence and quality assurance of the training given.

Placement for wage-employment would be ensured through NSDC partners / training partners of MANAS. Self- employment to be ensured by the training partners with NMDFC loans through MANAS. The training partners of MANAS and MANAS itself will become a Channelizing Agency of NMDFC for this purpose to establish link in between disbursement of credit and self-employment generation through Skill Development/Skill up-gradation. Overseas placement would be undertaken through the Ministry of Overseas India Affairs and placement within the country through other Government Departments/Agencies. Monitoring, supervision & tracking of the candidates would be undertaken by MANAS / training partners etc. MANAS will use data center of NMDFC.

Vocational Training Scheme

The Vocational Training Scheme of NMDFC aims at imparting skills to the targeted individual beneficiaries leading to self/wage employment. The scheme is implemented through the State Channelising Agencies, which organize need based vocational training programmes in their States with the help of local Government owned / recognized training institutes in trades having potential for self/wage employment. The cost of the training programme is upto Rs. 2000 per candidate per month for courses of maximum duration of 6 months. Stipend @ Rs.1000 per month per trainee is also offered during the training. As per the scheme 90% of the training cost is met by NMDFC as a grant while the remaining 10% is borne by the SCA/Training Institute. The SCAs/Training Institute have to ensure placement of at least 80% trainees in wage employment/self-employment with placement of 50% trainees in formal sector. Handholding support of 1 year is also given to trainees after the training program.

The SCAs are required to submit their proposals to NMDFC in the prescribed formats for approval/release of funds.

S.No. Parameters Scheme Details
1 Training Cost Up to Rs. 2,000/- per month per trainee
2 Duration of Training Up to 6 months
3 Stipend Rs. l, 000/- per month per trainee.
4 Means of Financing NMDFC : SCA/Trg. Institute 90: 10
Marketing Assistance Scheme

The Marketing Assistance Scheme is meant for individual crafts-persons, beneficiaries of NMDFC as well as SHGs and is implemented through both SCAs as well as NGOs. With a view to support the crafts-persons to promote marketing & sale of their products at remunerative prices, NMDFC assists the SCAs and NGOs in organizing State / District level exhibitions at selected locations. In these exhibitions, hand loom / handicraft products of Minority crafts-persons are exhibited and sold. Such exhibitions also serve the purpose of organizing "buyer seller meet", which is considered very useful for product development and market promotion, for domestic market as well as for exports. NMDFC provides grants for organizing exhibitions, as per the specific guidelines of the scheme, after due appraisal of the proposals.

S. No. Parameters Scheme Revised
1 Cost for organizing exhibition at SCA level
  • For A Class cities Rs.20,000/stall
  • For B Class cities Rs.16,000/stall
  • For C Class cities Rs.12,000/stall
  • For D Class cities Rs.10,000/stall

All metros are A class cities, All State Capitals other than Metros are B Class cities, District headquarters are C Class cities & others are D Class cities.

2 TA 2nd class sleeper or ordinary bus fare for 2 persons (on actual)
3 DA Rs. 500/-per person for 2 persons representing each artisan/SHG.
4 Participants Artisans 1 Individual beneficiary (2 beneficiariesper stall); preference being given to SHGs having 10-15 members; Stalls would be allocated in the ratio of 2: 1:: SHGs: Artisans/ individual beneficiaries.
5 Max. Stalls in Exhibition 10-40 Nos.
6 Duration of exhibition Normally 2 weeks
7 Means of FinancingNMDFC : SCAs/NGOs 90% : 10%
Grant in Aid Assistance scheme

The SCAs of NMDFC are supported under the scheme of Grant In Aid Assistance (GIA) of the Ministry of Minority Affairs to strengthen their infrastructure for effective implementation of NMDFC schemes. So far, Rs.17.14 crores has been released to the various SCAs by NMDFC.